It’s easy to get enticed by the prospect of making quick money in the stock market. On the other hand, investors who purchase and hold low-cost index funds that mirror a broad market index, such as the Kenya forex brokers, may enjoy better long-term returns.
When you’re new to day trading, there’s a lot to learn. You’ll need to select what to trade and how much cash you’ll need, as well as obtain the necessary equipment and software, choose when to trade, and, of course, manage your risk.
If you’re still interested in trying your hand at day trading, there are a few guidelines to follow to avoid getting in over your head. In this article, I will be telling you how I improve my stock market portfolio by day trading in just one day. Although these tips don’t guarantee success, I always recommend using the help of experts like Kenya forex brokers to help you get started.
I traded with money that I can lose and still remain unaffected and I started Small
I tried range trading
I identified a “range-bound” stock that bounced between a low and a high price, purchased it when it got close to the low, and sold it when it got close to the high.
I kept up with the trends and the momentum
I attempted a technique that seeks to ride the wave of a stock that is moving up or down, maybe due to an earnings release or other news. I’ll either buy a rising stock or “fade” a falling one if I believe the trend will continue.
I planned my strategy before I started after thorough research
Having an exit strategy for each investment asset is key to me because it prevents me from making an emotional decision when a sensible decision is required.
I tried Spread Trading
I attempted spread trading, a high-speed strategy for profiting from transitory shifts in emotion by leveraging the gap between the bid and ask price for a stock, also known as a spread.
For example, if a buyer’s bid price lowers unexpectedly, a day trader may jump in to purchase and then try to resell at the stock’s ask price or higher, making a tiny “spread” on the transaction.
Following your decision on which stocks to trade, you’ll need to figure out the ideal trading technique to increase your chances of making a profit. Whatever approach you choose, it’s critical to discover one (or more) that works for you and that you can trust. Finding a technique that works for you might take some time, and even then, the market can shift, requiring you to modify your approach. I hope my guide to day trading and increasing your stock in one day was helpful.
This article was written by a guest author. The opinion, advice, or views you will find in this article is not related or belong to any member or staff of Bloggingitech.