Day Trading Strategies For Beginners

Becoming a day trader may seem attractive at first glance, but it really makes sense for a novice trader to take a good look at what they will be doing as a day trader and assess both their probability of success and whether or not day trading will suit their desired lifestyle.
It is important to keep a record of all your trades…Yes, you will have trading records shown in your trading platform but what I mean here is screen capturing your trades trading strategies learn and then making notes of why you took a trade, where you placed your stop loss and profit targets and why and if you win or loose, this is your record of what you did.

A reversal strategy trader waiting for the security to show reversal closes his existing long position and takes a short position to capitalise on the downward price movement, or closes the short position to stop incurring any losses in intraday trading and takes a long position to benefit from the upward price movement.
So with a good strategy drawdowns are minimal, and in a worst case scenario it is a VERY slow capital drain, but if this is happening the trader can hopefully work on finding the issue that is causing the drain in capital before it becomes significant.

If you are a stock trading beginner and want to try your luck in Day Trading (however, we do not recommend it because you will probably lose money) you should ensure that you use stop-loss feature and also trade only products which you understand and are traded on real exchanges like NYSE, Xetra, CME, Globex, Comex, Eurex etc.