Daytrading is generally not suitable for beginners or for people who want to earn a few euros quickly. Rather, day trading is a tough business that only experienced traders should trust.
Not infrequently, the risk as well as the high requirements are underestimated. Without a deep knowledge and experience, however, there is hardly a chance to compete with want click here! the real daytrading pros. For this reason, it is a duty for every daytrader to acquire extensive stock market knowledge.
Table of contents
Market selection - original site they decision for a day trading market Time management - Creation of a schedule Monetary management Risk management - minimize risks
> Observation of day movements
Market selection - decision for a day trading market
Investors should first choose a day trading market because the best strategy is not good if a position is only executed after a few hours when sales on the exchange are missing. That is, a market must be liquid and have high volatility. Finally, daytraders realize their profits from short-term price fluctuations. So, the higher a value fluctuates in the day, the greater the chance of make my review here achieving profitable trades.
It is very important that Daytrader create a schedule. Experts recommend to always start at the beginning and at the end of the respective exchange trading hours, as only in these times will there be strong price fluctuations. Particular attention is to use additional reading be given to the opening up of the German and American stock exchanges. Often analogies are shown here, since the German market often follows the American market.
Moneymanagement try these guys as - classification of money
Daytraders generally create a plan by listing how they use their equity. For example, if 100 percent of equity is invested in a position and held for several hours, no more - perhaps more profitable trades - can be set. According to this, experts recommend using a maximum of 50 percent of equity for long-term trades (position trades).
In the case of short-term trades (scalp trades), however, you could try this out an more investment can be made. Nevertheless, not all capital should be used here, because in some cases, trades will develop longer.
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Risk Management - Minimize Risks
A reasonable risk management is a must for every daytrader. The question must be asked how much is willing to invest or lose. According to the motto "somehow it is already good" or "something I will already win" must never be begun with the action. Likewise, emotions such as euphoria, greed, despair, or fear do not have to look for daytrading, because whoever surrenders back my company to them makes irrational decisions. The total loss is then pre-programmed. Here it is said that a cool head has to be preserved.
In order to carry out an efficient daytrading, it is absolutely necessary to evaluate the current economic data every day, because news, publications, Considerable influence he go to these guys on the current day's movements. For this purpose, most brokers provide different tools. One of the most important tools is of course the economic calendar. It may also be useful to be informed in brokerboards. Here, for example, professionals discuss the latest trends.
Fundamental analysis plays a big role here, of course