If you are wondering what day trading is, understand that day trading is market positions which are temporary; commonly the trader opens and shuts a position just the same day but can also hold the position for a longer time. The position can either be short (“borrowing” shares and then choosing to sell them at a specific price) or long (purchasing outright). A day trader is aimed at taking benefit of volatility in a trading day and decrease the “overnight risk” brought by events that might take place after the markets are shut.

Here are a few day trading strategies for beginners.

1. Make Entry when Demand and Supply Are Extremely Imbalanced

The financial markets are just the same as anything else: if there is overly supply and no demanding buyers, prices will reduce and if supply is about to exhaust and there are still demanding buyers, prices will naturally go higher. You should recognize these turning points and study historical examples to make an entry in the market.

2. Set Price Targets Upfront

If you are purchasing a long position, determine upfront how much profit is expected and also a stop-loss level in the event of the trade turns against you. Whatever decisions you take, stick to them. This will restrict your possible loss and also prevent you from getting excessively greedy should price shoot to an untenable extent. There is an exception though. It’s acceptable to plan a new stop-loss level and profit goal in a strong market once you achieve your initial target.

3. Have Patience

One of the main things while learning how to day trade is to have patience. It may seem paradoxical but successful day traders trade daily. They may sit at their computers or be in the market, but if they don’t find any opportunities that fulfill their criteria they won’t implement a trade on that day. This is a better strategy than acting against your best judgment out of an impatient wish only to “do something”.

4. Be Disciplined

It’s emphasized that you should set a trading plan and adhere to it. Better you take trading training under an experienced instructor until correct decisions become your second nature. If you are trading independently, spontaneous decisions and emotions may become your worst enemies. Greed may make you stick to a position for too long and anxiety can make you give up too soon. Here you need to be disciplined and consistent.

Follow these tips, find the best stocks to day trade and win the race slowly and steadily!