Good timing is an excellent skill to have in today’s world. If you’re in the right place at the right time, you can unlock opportunities that aren’t available for anyone else. That rule applies in your career, your personal life, and anything else you can think of. It’s no surprise then, that in the investment world, getting your schedule exactly right is often the key to success. If you’re learning how to day trade, then you’re going to have a particularly strong relationship with the moments in your day. You’ll need to pick every instant correctly, to ensure that you’re buying and selling in a way that generates the best return on your investment. So where do you get started?
Understand Your Commitment
The first thing to figure out, is how much of your own hours and minutes you’re willing to give up to build your wealth portfolio. If you’re not happy taking a chunk out of your day, then you’re probably not suited to day trading. You might be better off taking a more passive strategy instead. If you do have an open calendar, then sit down and figure out how much of it you’re going to dedicate to this new lifestyle. Remember, it’s not just buying and selling that you need to make room for. You also need to think about the months that might go into training and developing your skills. Many professionals spend years working with demo and paper accounts before they ever begin using their own money.
Learn the Market
Once you know exactly when you’re going to be available to trade, you can begin to match your schedule with the industry. Many of the orders placed by investors in the stock market happen as soon as the exchanges open each morning. This contributes to a lot of volatility. If you’ve got a lot of experience, then you might be able to recognize the patterns and pick up opportunities immediately. If you’re new, then you might spend the first 20 minutes of each day just reading the moves around you. The central hours of the day are often less volatile, but this also means that you won’t see nearly as much action. Other points to consider might be whether you want to work with a broker that also offers after and before-hours options, if you want to get ahead of the bell each day.
Another way to use time to your advantage when you’re building wealth, is to learn how to be patient. There’s a good chance that you’re not going to become a millionaire overnight. You’re going to have to learn, slowly and painfully, how to make decisions that benefit your portfolio. Sometimes, this will mean cutting your losses with limit orders. In other situations, you might need to wait for an opportunity to mature before you grab it. Be realistic from day one about what you can achieve, and how quickly you’re likely to reach your investing goals. The chances are that you’re going to need to spend more of your time than you think on pursuing those targets.