Avoid Common Day Trading Mistakes

Fortunes are made and lost through stock trading. A day trader is particularly susceptible to making and/or losing money on a consistent basis. Avoiding the three most common mistakes made by new day traders can minimize the typical high risk to improve the odds of winning.

Day Trading Is, By Definition, Risky

All day trading definitions are similar. A day trader buys and sells securities throughout the trading day and closes all activities by the end of the daily period. The opposite of a buy and hold strategy, this action plan involves taking wins and losses daily.

 

Look at the many daily highs, lows, and overall volatility of online stock trading. Clearly, the risk/reward quotient is always high on both sides of the equation. Daily online trading can generate large profit and devastating losses.

A day trading strategy requires that the investor minimize risk and avoid common mistakes. The vagaries of the stock market will generate its own results without negative assistance from the trader. (more…)

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Best Way to Learn Stock Trading Basics

The Internet offers many tools to help people gain the knowledge they need to become successful investors. Some are excellent, while others may be a bit confusing. Two learning tools typically prove to be wonderful sources of information for the newer investor.

Two Useful Stock Trading Basics Tools

  1. Online investing courses for beginners. An online stock trading course that addresses (and defines) primary investing terms, “how-it-works” data, and includes a discussion of the basic theories used by experienced traders provides invaluable help to new investors.
  2. Superior stock trading simulation games. The best stock market games offer real-world excitement and total reality, permitting the player to gain strong experience without risking real money. Using “virtual” money, players learn how stocks react to current economic conditions and pressures.

 

Stock Trading Courses

There are many options for choosing stock trading courses. Continuing education courses at colleges and universities- and many community colleges- offer stock investing basic programs. However, the Internet also offers some interesting and valuable courses outlining the basics of investing. For anyone interested in building a knowledge base regarding successful stock trades, a course like Investing 101 at Wall Street Survivor, can offer the information one needs to create a profitable stock portfolio. (more…)

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