Trading Strategies for Beginners
Trading Strategies for Beginners Before you get bogged down in a complex world of highly technical indicators, focus on the basics of a simple day trading strategy. Many make the mistake of thinking you need a highly complicated strategy to succeed intraday, but often the more straightforward, the more effective. The Basics Incorporate the invaluable elements below into your strategy. Money management – Before you start, sit down and decide how much you’re willing to risk. Bear in mind most successful traders won’t put more than 2% of their capital on the line per trade. You have to prepare yourself for some losses if you want to be around when the wins start rolling in. Time management – Don’t expect to make a fortune if you only allocate an hour or two a day to trading. You need to constantly monitor the markets and be on the lookout for trade opportunities. Start small – Whilst you’re finding your feet, stick to a maximum of three stocks during a single day. ...