5 ways to Avoid Day Trading Mistakes

Before you get lost in stock trading software reviews and underground stock alerts, it’s critical to do the foundation of learning required to be a day trader. It’s a risk-filled environment, going against classic ‘hold and accumulate’ stock advice by making money in tiny increments from price fluctuation. There’s a reason it hasn’t been available to the public until now- the tools needed simply weren’t there without the internet. Now the potential rewards- and risks- are there for everyone.

Here’s how not to be a stupid trader.

Stock trading software is less important than a tangible plan.

Before you even think of signing up for a penny stock newsletter, let alone buy custom software, stop, breathe and make a plan. There’s a ton of different trading strategies, styles and more you can use- this isn’t what that is about. You need to know how you will identify successful trades [performance metrics], what particular facets you intend to look for to identify your good trades, what stock you are interested in trading and what your exit strategy will be. Then, stick to the plan. Emotional flipping is the single best way to lose money on the stock exchange. Don’t let fear and impulse sales control you. Don’t change strategies because they ‘stopped working’. Losses are part of the game. Change because market dynamics say so, not because you panicked. See more here

Follow the news

A penny stock newsletter can be helpful to you here, but you should consider other, mainstream news too. The amount of day traders who try to trade with no knowledge of the wider economic impacts on the market is staggering- and stupid. Be smart, know what’s happening.

Journal and review.

Unsuccessful day traders don’t analyse what’s happening with their trades. When the day is over, analyse your trades and why they worked/didn’t. Keep a journal so you can monitor where you win and lose over the long term. Most good stock trading software will have this feature built in. You can’t learn what you can’t quantify- be smart.

Expect and adapt

Expect the unexpected sounds corny, but it’s true. Underground stock alerts may help you stay on top of the market, but in the end you will have to adapt your strategies and tactics with market changes. Be dynamic and willing to change with the times.

Stop-loss and limit orders are your friend.

Stop-loss orders exit you from trades if a certain amount of money is lost. Limit orders say you won’t pay more than x amount for something. Using both these critical tools with every trade will make your life easier and your losses less steep- protect yourself at all times by using them with every trade.

Day trading can be risky, but it’s the hasty and the ill-prepared who suffer bad consequences. Most stock trading software has features to help you implement all of these tips simply and effectively- don’t be the trader who loses their shirt, trade smart not hard. See more this site: http://www.analystgroup.org/how-to-choose-a-stock-broker/

 

How To Choose A stock broker

You have probably arrived at this page because you are in the market to find a stock broker. But what kind of services should you look for? How do you know that your broker will work to get your trade executed cheaply, quickly and for the best price? We have you sorted.

It is no secret that the right brokerage firm can open up your investing opportunities. So in this article, we have provided some of the tips to keep in mind when choosing a stock broker. Read on to find more.

stock broker building

1. Where you want to invest

The first thing that should come to your mind is where you want to invest. Here, you have two options, either to invest in shares listed in your local stock market or in foreign markets.

If you plan to invest in local markets, you will have plenty of brokerage firms to choose from. If you plan to invest in foreign markets, you will have limited options. Check the international stock broker guide to find out which brokers trade which markets.

2. What you want from your stock broker

The next step is to determine what you want from your stock broker. There are various categories of stock brokers. For instance, discount brokers also known as execution-only brokers carry out your trading instructions either by phone or online.

Full service or advisory brokers will discuss will discuss your investment ideas or portfolio directly with you. They will offer you advice that you need but it is you to make the final decision.

3. Check costs carefully

There are several brokers out there who promise low headline dealing rates but they don’t live up to their promises. Some of them keep their promises only to claw it back through excessive account management fees or high currency conversion costs.

Make sure to read the guides on stock brokers cost to get an overview on how stock brokers charge their clients. Those guides can also help you compare costs of various stock brokers of major stock markets.

4. Understand how your stock broker works

As a beginner, understanding how various stock brokers work might be a bit technical for you but it is important as it will help you choose the best firm. For instance, when it comes to international stocks, different brokers deal in different markets in different ways. A few of them offer direct market access, which means your order is sent directly to the exchange.

As a beginner, you don’t have to care how they work behind the scenes. Unless you need the absolute best price possible and very fast trading, how they work behind the scenes will not make a huge difference to you.

5. Look for a flexible, convenient service

Flexibility and convenience also fall under the tips to keep in mind when choosing a stock broker. Flexible and convenient brokers offers tax-advantaged accounts such as SIPPs and ISA, especially in the UK. If you are a higher rate taxpayer, minimizing tax can bring a big difference to your investment returns.

For international investing, flexible and convenient brokers offer multi-currency accounts. These types of accounts allow you to hold cash in several different currencies without extra charges.

6. Stay safe

Make sure you only deal with reputable brokers who have put the necessary measures to protect their investors. Such brokers understand how investor compensation schemes and protection rules work and they are ready to protect and compensate you if the worst happens.

That said; never place your money with some new brokers that nobody has ever heard of. Also, never trust those firms with your money if they are based in countries that have no rules to compensate or protect investors.

7. Don’t let brokers upsell you

Stock brokers’ main goal is to generate much commission and fees from you. So they will do their best to sell you products and services you probably don’t need or encourage you to trade more often which is very dangerous.

Conclusion

Having said all this, the most important thing you can do is to shop around and compare different stock brokers. Never settle on the first firm you come across.

When you have a shortlist of stock brokers, go ahead and sign up with more than one of them. It is not easy to determine whether a brokerage service is really going to suit your needs until you have used its platform for a while.

Always remember that there is no problem if you decide to keep several accounts. Those accounts will benefit you in one way or the other since different stock brokerage firms tend to be better in different niches.