The way to become a successful daytrader!

Since digitalization has made it possible for every adult to participate online and in real time on the virtual trading floor, Germans are shedding their shyness about securities trading. Some investors try to earn money in asset trading alongside their actual bread and butter and after work. Many beginners have the desire to change careers and pursue the goal of practicing day trading full-time and earning money with Trading earn money.

According to Andre Witzel, a recognized trading specialist and founder of one of the first German-language online trading schools, "the path to becoming a stock market professional involves a number of obstacles. Especially newcomers make mistakes in the initial phase due to lack of preparation, which lead to bitter losses". How are these avoided?

*If the entry hurdles are overcome, day trading can be expected with gratifying profits! (Image source: Pixabay*)

What is understood by day trading?

What you can learn here

What is understood by day trading?
- Differences between day trading and investment
Step by step to become a day trader
Conclusion

Trading means as much as "trading". On the stock exchange, this refers to the short-term purchase and sale of assets. According to Witzel, three types of traders can be classified. Swingtrader bet on trends that run for a few days or a few weeks. This type of stock market trading is ideal for newcomers who want to deal with stock market trading as a sideline.

Daytrader are stock exchange traders working full time. They spend their working day using the price fluctuations of tradable financial instruments to generate profits high enough to live on. Scalper are under even greater time pressure as they try to profit from the smallest fluctuations in the seconds and minutes range.

Since trading fees increase with trading volume, traders need to look especially hard for trading platforms (brokers) that come up with low fees. Read more can be found on Andre Witzel's website.

Differences between day trading and investment

On the stock exchange, a distinction is commonly made between Trading and investments differentiated. Whereas trading is a active trading style, investors place certain securities in their securities account in order to "park" them there. Often they are not touched for months and years. With this passive form of stock market trading, attempts are made to generate profits via the long-term increase in value.

Step by step to become a day trader

Day trading is a complex undertaking for beginners. It is generally not advisable to embark on the stock market adventure without thorough preparation. Overestimation and lack of basic knowledge tempt to actions that lead to paying expensive lesson money in the form of avoidable losses. Therefore, the first important step is to acquire a comprehensive basic knowledge.

Learn the basics of stock market trading

Those who want to start trading usually delve into technical literature and call up free webinars, tutorials and learning videos on the Internet that deal with the subject matter. This method is associated with a great deal of effort. In addition, only individual topics are addressed selectively without going into greater depth. Therefore, the doubts whether a successful daytrader career can be started with this approach are justified.

Witzel strongly recommends approaching securities trading with a professional trading education. Reputable training courses are characterized by transparency with regard to content and costs. Experienced coaches teach the basics of stock market trading and use practical examples to provide a common thread that newcomers can follow. In addition, profitable trading strategies are presented and the handling of the trading software is practiced until it fits.

You should also thoroughly learn about different trading instruments and strategies, and learn the basics of technical and fundamental analysis to better understand the markets.

Remain rational

The ability to control your emotions during trading is also of great importance. Greed and fear can lead to impulsive decisions that can (and will!) negatively impact your successes.

Stay patient

Even though most people dream of making money quickly, patience and perseverance are essential in trading. Because success in day trading requires time and perseverance. You should not expect to make high profits right from the start.

Find broker

Another important step in day trading is the selection of the Brokers. This manages the depot and buys and sells Shares and securities on behalf of and with the capital of its clients. Since day trading involves a large number of trading actions, it is important to ensure that the trades are subject to low fees. In addition, the trading platform should offer a demo account, with which virtual money can be used to practice until the processes have become second nature.

Which assets are suitable for day trading?

In principle, all assets are suitable for trading. In Witzel's experience, the following financial instruments in particular promise profits:

CFDs (Contracts for Difference)
Forex (Foreign Exchange) respectively foreign exchange
Options
cryptocurrencies
Futures
Swaps
certificates

Conclusion

Those who approach day trading consciously and prepare intensively can expect considerable profits. The starting capital should be at least 5,000 euros to survive the first losses. A professional trading education is recommended to avoid beginner's mistakes and reduce losses. FURTHER tips to start with Trading earn money can be found in the linked article.