The stock market is such a vast field where both profit and risk factors are high. There are many traders all around the world who trades in the market professionally in spite of the risk factor. Therefore, day trading for living purposes is not impossible, one has to play smart and watch steps carefully. In this article, you will get an overall overview regarding day trading and what are the requirements of it.
Before stepping into the main discussion, one thing should be clear to you. If you want to trade professionally, remember one thing that it is not a one-day procedure. Professional traders reach the peak point after crossing a long way. You need to be very patient through this journey. In this context, you will get a basic guide on how to start day trading for a living.
How to Start Day Trading for a Living?
Prepare Yourself First Before Entering the Market
Before entering into the Stock Market, make sure you have acquired proper basic knowledge about it. Here, in this field, those who have more knowledge and experience, are always on the top in comparison to those who have less knowledge. Therefore, first of all, let’s get one thing clear there is no end of knowledge in this field. Try to enter the field with basic knowledge, and after that try to keep yourself updated daily.
Try to Avoid Fear and Greed
Fear and Greed are the two major drawbacks in the stock market. There are a number of traders who fail only because of these factors. Psychological effects play a significant role in the stock market. You need to be confident enough while trading. In the financial market, profit and loss are very common factors. Don’t be afraid of losing a trade. Try to play smartly and wisely so that your risk could be minimized.
Update Yourself Regularly
This is the most important thing to stay in the market. If you don’t update yourself regularly, others capture your place soon. In this market, a fraction of a second is important. You need to prepare yourself in that way. You have to monitor the current market trend, and price action along with national-international factors, government policies, RBI rules regulations, etc. If you want, you can follow our articles in our blog section.
Avail Genuine Charting Tools
In order to trade daily, you need to have proper genuine charting facilities for technical analysis. Besides, charting facilities, you need real-time signals along with proper technical tools and techniques. So, consider these points before opening a Demat account. For example, in Zerodha (StockManiacs is the marketing partner of Zerodha) you can find the real-time signal with various charting facilities.
Proper Internet and Server Connection
A stable internet connection is absolutely essential for day trading. For a trader to buy and sell stocks, they must have access to detailed data that will provide critical information about the current market activity. A slow or unreliable internet connection can cause significant delays in data processing which can lead to missed opportunities in terms of when to enter into positions or exit them. Furthermore, with the increasing speed at which markets move and even small discrepancies in prices having an impact on profitability, traders need instantaneous information so as not to be disadvantaged by slower connections. Therefore, a connection failure during trade may cause a huge loss in trading.
The minimum equity required to start day trading in the Indian stock market is ₹25,000. However, it’s recommended to have at least ₹50,000 so that you can diversify across multiple stocks and various sectors.
Day traders usually make between 1-2% of their invested capital every month. However, profitability varies depending on the trader’s skill level and the strategies employed.
Yes, a trader needs at least ₹25,000 as capital in order to open an account & start trading in the Indian stock markets.
If done correctly with proper risk management techniques then yes – Day Trading can be a very profitable activity. Developing and following your own strategies or learning from experienced mentors are essential steps towards success when it comes to day trading profitably!
Hence, we have discussed the basic guidelines for day trading. If you can follow the rules we discussed here, you may get success in your trading career. Remember, trading is not a get-rich-quick system. You need to do it as a business and need to prepare yourself to out-perform other day traders.