Day trading can be a great way to make extra money, or to lose it all. This piece will show you how to use good planning and good judgment to keep your risks to a minimum, while getting started in day trading and choosing your first investments.
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Difficulty:
Moderately Challenging
Instructions
1
Set your budget. Day trading is serious investing for some and fun for others, also like any other investment it comes with risk. Decide how much you are willing to invest in your day trading based on your goals, tolerance for risk and income.
2
Find a site. Site very greatly in costs and services. So give your search engine a real workout to find the trading site that’s best for your needs.
3
Set up your account. Register and provide the needed information. Load the initial investment portion of your budget as well.
4
Do your homework. Research markets, trends and companies you are interested in investing with before you make your purchases.
5
Decide who to invest in (based on your research) and purchase your stocks.
6
Stay informed. Check your stocks performance regularly and subscribe to at least one fininacial publication, either inprint or online.
7
Sell when share prices go up or when you no longer want the stock.
Tips & Warnings
The goal is buy low and sell high.
It would be best to diversify your holding over multiple companies and industries.
Don’t buy stock on margin unless you are an extremely experienced investor, this carries great risk.
Buying or selling stock based on internal company knowledge is insider trading, which can get you arrested.
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