Are you looking for a day trading guide for beginners? We’ve got you covered.
In this post, Let’s discover what day trading is and how it works and also some expressions you need to know about it in this quick guide.
Table of Contents
What is Day Trading? Shortly Explained
Simply, when a day trader places a trade in a trading session, they are looking for profit from that session within the same day and don’t hold it overnight. Day trading is the action of buying and selling trades in one trading day. Contrary to day trading, Swing traders hold positions overnight. If you are interested about swing trading you can read more at our blog:
How To Master Swing Trading? A Comprehensive Guide
Day Trading Example:
If a trader purchases Tesla shares on Monday and sells them on the same day, it becomes a day trade. But be aware of regulatory requirements when day trading. According to FINRA regulations, if you execute more than three day trades within a five-day period, your account will be classified as a pattern day trader.(only in USA) As a pattern day trader, you are required to maintain a minimum account balance of $25,000 to continue day trading.
How to get started in Day Trading?
Well, if you want to start day trading as a beginner it is suggested to firstly educate yourself. Look for comprehensive courses and tutorials that can familiarize you to basic day trading terms. You can read our full guide on day trading at: Ultimate Beginner’s Guide to Day Trading? To gain all the basics that you need.
What is the best source to use for starting day trading?
If you are looking for a more indepth source that explains all the trading basics you can take a look at our Free Ebook On Stock Trading By Meta Trading Club.
In this Ebook, every basic topic in day trading has been explained in a simple way and it’s completely free.
Tools for Day Trading
Let’s take a look at some tools for Day Trading:
1. Charting Softwares: Use charting tools to analyze price movements, identify trends, and spot trading opportunities. charting platforms such as:
2. Technical Indicators: You can use technical indicators such as moving averages, relative strength index (RSI), and Bollinger Bands, etc. to have better trading decisions.
3. Level II Quotes: Try to have access to Level II quotes to see real-time bid and ask prices, as well as market depth, providing insight into market liquidity and order flow.
What stocks are the best to trade?
To know this, you need to have some kind information on trading or the market overall. So, in that case you can check out What are the Best 10 Day Trading Stocks YTD That You Need To Know About? As we listed the best stocks to trade in the year 2024 only for beginners.
Last Words
If you are a total beginner and don’t know where to start your trading journey you can have a Free Discovery Call With Meta Trading Club’s best and most professionals. In this call you can figure out what are your goals before entering the trading world.
