Is it good to enter day trading as a beginner?
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Now, the prime question is should beginners trade intraday. The answer is no. It involves a high level risk factor, and when trading, one must consider risk management techniques to become a successful trader.
For every new market development the stocks experience wild price swings besides the inherent volatility of the stocks. Hence, intraday profits are possible with rapid price variations both large and small.
Why not? but with a small capital & strict stoploss.
Anyone who trades with discipline and proper risk-reward will sustain in the market even though he is a beginner.
Here are a few tips for beginners to trade intraday:
1. Do not take a position blindly, find some reason to enter and to put stop loss
2. Always put a stop-loss after you take the position
3. Follow a risk-reward ratio of 1:1 or 1:2 (as a beginner do not go for a 1:3 risk-reward ratio)
4. Accept the loss when your view goes wrong
5. Do not chase the market
6. Stop trading once your trade hits the target or stop-loss
7. Do not take revenge on the market when you get a loss trade
8. Do not over trade (As a beginner limit your positions to 1 or 2)