Get That Bread! 8 Day Trading Strategies Every Trader Should Know

However, even though crypto seems to be growing at an extremely rapid pace, more standard investments like stocks and the forex market continue to dominate the investment octagon as they are generally looked at as safer and smarter options. The digital market is still very new and extremely volatile, so it's not for everyone.

But day trading is.

Day trading on the stock market is your best bet to build long-term, sustained wealth. What Is Day Trading?

Day trading refers to the act of buying and selling a specific financial investment or instrument, like a stock, on the same day. This allows you to make short-term profits if done properly, and long-term profits if continued success occurs over a long period.

The stock market is rising and falling every few minutes and you'll need to understand how to read the market to your advantage to be a successful day trader.

So, how do you do this? Well, it's simple really. Look at the tactics that have worked for those who are successful day traders and adopt a similar stance in your own trading.

Ready to boost your day trading returns? These 8 helpful strategies will improve your chances of becoming a successful day trader.

1. Do Your Research - Knowledge is Power

This might seem obvious, but many traders go into the market completely blind, hoping for a stroke of luck to make a quick buck. Yes, it's true that you don't necessarily have to be completely clued up to strike gold on a random day. However, if you're looking to make a bit of money each and every day and sustain your success, there are a few things that you need to research about the stock market and day trading.

Here's a list of important things you need to know about and research before you get started as a day trader:

?  Interest rate plans

?  Leading indicator announcements

?  Business and financial news

?  Company stories and industry changes

2. Decide on Funds to Set Aside

This tactic is essential for any successful day trader as this type of trading is an ongoing quest to make sustained profits. Before you even begin making any investments, you need to set goals about how much you intend on flipping each day.

To do this, you first need to decide exactly how much money you're going to spend making your investments on a daily basis. This will help you to estimate profits and allow you to make any important adjustments should you earn above or below your targets.

3. Time Your Trades

Since the nature of day trading involves making an investment and subsequently selling that investment on the exact same day, the process of generating profits depends entirely on the timing of your trades. What this means is that you need to understand the concept that many trades on the stock market execute immediately, and some take a little while longer, depending on the platform used or stock purchased.

Once you become more seasoned, you will begin to recognize patterns in market graphs and indicators that show many sales or purchases of a particular stock. Having the ability to identify these patterns may allow you to time your trades perfectly.

You shouldn't simply make trades at specific times throughout the day hoping for a profitable flip. Instead, you should constantly observe the market, make predictions, and time when to buy or sell certain stocks.

4. Start Small

One tip that most top investors insist on is to start by making small trades. Why? Well, it's simple really. While you won't rake in massive daily profits by making small investments, you certainly won't make devastating losses, either.

At the start of any trading career, survival is the key goal. But as your profit margins start to grow, so can your investment sizes. You'll have more money to take risks with, without affecting your starting capital.

5. Steer Clear of Penny Stocks

So, we've settled the fact that you should be starting small with your investments. But that doesn't mean that you should be looking for cheap deals that might bring profits. Any new investor should steer clear of penny stocks, as they often turn out to be illiquid and offer the smallest chance of hitting a daily return.

6.  Be Realistic

The most important characteristic of any successful day trader is being able to stay realistic in the face of massive success or potential failure. If you can see that you're going to hit a big profit one day, you shouldn't row the boat too hard and push yourself off an investment cliff the next day.

Alternatively, if you notice that you're losing money over a sustained period, you need to be realistic about the strategies you're using and your overall investment fund. If you need to make adjustments, do so soon. When you invest in stocks, swinging between extremes is the norm and prices can flip as soon as you decide to make a change.

7. Try Scalping the Market

Scalping is one of the most popular strategies used by day traders and it's a useful skill for beginners too. Scalping involves selling very quickly after entering trades in order to move from investment to investment. This may be risky, but it does increase your chances of hitting a jackpot trade and making more money than you bargained for.

8. Lastly, Remember to Stay Cool

It's no secret that working in trading, especially in the day trading industry, can be extremely stressful. Especially if you're not seeing immediate success. However, day trading is just as much about temperament and personality as it is about knowing the market and its trends.

If you're always staying calm, cool, and collected, you won't rush into unnecessary trades, nor will you end up making risky decisions that may cost you your profits. Take it day by day and you'll soon get your hands on that bread—and maybe some butter too.