Day Trading for Beginners - Learn how to trade with nextmarkets

Last updated: 23.01.2020
Frans de Klerk
Author:
Frans de Klerk
Adviser
CFD & Trading
Experience
12 years

For beginners, getting started with day trading can be intimidating. Not only do you need to learn the terminology and methodology but you also need to cultivate the right attitude for successful day trading. Many people launch into day trading without giving it proper thought.

We are often driven by greed, fear or arrogance, and this leads to poor decision making and loss. With nextmarkets’ demo platform, you can learn from the pros in real time. This is just one of the ways you can learn day trading as a beginner.

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Day trading for beginners

Once you have decided you want to learn day trading, the first step is to arm yourself with knowledge. If you are at the level where you are asking yourself, what is day trading? then you know you have a lot of work to do. Day trading is the short term buying and selling of securities within a single day of trading.

Day traders make their money by capitalising on small prices changes on highly liquid securities. If you’re interested in learning more about day trading for beginners, you should learn the difference between the markets. You might be wondering, what are stocks? and are they right for me? Don’t worry about mastering all markets at once and instead focus your attention on the market that interests you the most.

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Learn day trading with nextmarkets

Some people learn by reading everything they can get their hands on, while other people prefer to learn by doing. Making the most of the wide range of day trading software that is available is one of the best ways to learn day trading for beginners. You can open a demo account that allows you to trade with virtual currency.

Once you have identified the market you want to trade on, you can experiment and find a trading technique that works for you. With nextmarkets, you can also follow what our team of expert traders are doing to gain insight into the mind of the day trader.

How to get into day trading

Day trading for beginners isn’t something you can dip your toe in every now and then. If you’re thinking of becoming a day trader, you will need to commit to a regular schedule. Treat it like your full-time job if you want to make the most of opportunities. If you want to learn how to day trade with nextmarkets successfully, the best thing you can do is develop a routine.

While some traders might trade for an entire trading window, others will focus on a specific time, such as opening and closing times. The times you trade will vary depending on the markets you are operating in. For example, when trading stocks (the shares of a company) the best time to trade is the first one to two hours after the market has opened and then the final one to two hours before closing.

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Learn how to day trade with nextmarkets successfully

In order to become an expert day trader, you will need to choose a strategy that works for you. You can learn more about day trading strategies here. Just like the markets, you don’t need to learn all trading strategies in order to learn how to day trade with nextmarkets successfully. Instead, you should focus on understanding the nuances of one trading strategy, such as daily pivots.

This strategy involves attempting to buy at the low end of the day and sell at the high end of the day. In order to be successful at this strategy, you need to be apt at spotting patterns, so it is a very different skillset to momentum trading, for example (s. also momentum strategy).

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Learning day trading with nextmarkets is simple and easy. All members have access to a demo account they can use for as long as they want. You’ll also get:

  • Access to a virtual 10,000 EUR demo account
  • The latest insight from trading experts
  • A mobile app so you can trade on the go
Day trading for beginners

What you need for day trading

At the very least, you will need a high-quality laptop or desktop computer and a fast internet connection. It doesn’t have to be the latest model of laptop or a fibre optic internet connection, but it should be reliable. The last thing you want is your laptop crashing in the middle of a trade, or your internet connection cutting out just before the markets close.

You will also need access to nextmarkets’ trading platform. Read our guide to the broker UK. The requirements for learning day trading for beginners aren’t huge, but you need to be prepared to invest time in it.

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Essential tips for day trading

As outlined above, you need a laptop, internet connection, trading platform and broker to be a day trader. But what other essential tips for day trading for beginners are there? In addition to these items, you also need time. Day trading isn’t something you can do when your time is limited.

Although there are day trading apps available (and nextmarkets offers its own day trading app), it isn’t something that you should be attempting on the go. You need to make sure you can set aside time every day to commit to day trading. Day trading is fast-paced and exciting, but you’ll miss important trades if you are occupied with something else.

Day trading for beginners UK

For those in the UK, there are plenty of opportunities to master the art of the day trade. When learning day trading for beginners, UK residents have the unique advantage of being able to make the most of UK, European and US markets. It might mean some early mornings or late nights, but it opens up a world of opportunity for learning and perfecting your day trading strategy. You should also enjoy financial protection from your broker.

For example, did you know that all funds up to 20,000 EUR deposited with nextmarkets are protected by the Malta Investor Protection Scheme? You can get started with as little as 500 EUR and you can also make the most of a trading demo account to practice with before you put any money at risk. This is great news for learning day traders for beginners as it means you can practice in a safe and secure space.

Learn how to trade with nextmarkets

The best day trading guides

There’s no shortage of books on Amazon that promise to share the secrets of day trading for beginners, but in reality, the best way to learn it is by trading yourself. Some of the best day trading guides available are the expert coaches on nextmarkets. By following their trades in real-time, you can get an insight into the mind of a successful day trader and learn what makes a good trade.

This method of learning day trading is highly effective and powerful and will offer far more insight that reading a book could ever offer. Once you open your eyes to the world of day trading for beginners, you will soon become a sponge for knowledge and find insight everywhere you look, from the morning news to your favourite podcasts.

Dealing with losses as a day trader

Losing money is something that all day traders need to learn how to deal with. The first time you lose money on a trade will be disappointing, but try to treat it as a learning experience. Since the human mind is wired to seek out the negative, you might find yourself dwelling on a loss. In fact, the pain of losing 500 EUR is likely to far outweigh the joy of gaining 500 EUR.

At nextmarkets, we are trained to seek out danger and learn from our experiences, so a huge part of learning about day trading for beginners is learning to work against your instincts to walk away. If you are confident in your strategy, there is no reason you can’t be a successful day trader.

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A nextmarkets beginner's guide to day trading online

As outlined above, losing money is something that you will need to learn to deal with when learning day trading for beginners. However, there are ways you can take control and ensure you never lose too much on a trade. The nextmarkets beginner’s guide to day trading online will tell you the same thing. Mitigate your losses. This means deciding what you can afford to lose and never risking more than that amount.

Most day traders will set an amount that they are willing to risk, such as 1-5% of their total account. By doing this and sticking to it, you can ensure you never lose more than you can afford to. To this end, you also ensure you never have to dwell on the loss.

Things to avoid when day trading

Discipline is your friend. When embarking on a new adventure in day trading, you need to make a plan and stick to it. Far too many people learning day trading for beginners get sucked into following the herd. While learning from the experts has its value, once you are trading on your own, it’s time to start making your own decisions. Don’t assume that the experts will always be right, because no one is immune to risk.

While it’s true that “the trend is your friend”, you can’t always rely on this. Novice traders are often wary of going against the grain, but it’s important to be able to act on your own. Successful day trading for beginners is all about learning to act on your own instincts and impulses.

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Did you know?

At nextmarkets, we are committed to assisting the next generation of traders. For your peace of mind, consider the following:

  • You can get started from as little as 500 EUR
  • Funds up to 20,000 EUR are protected by the Malta Investor Protection Scheme.
  • We’re backed by Peter Thiel, Founders Fund, FinLab, and Falk Strascheg

When to start day trading with nextmarkets

There is no ideal time to start day trading. Once you have an inkling that this could be a lucrative path and good use of your skills, the only thing stopping you is your own experience. Day traders who dive in too quickly will soon find themselves in over their heads with big losses and a bruised ego. Instead, focus on accumulating knowledge and learning from the experts.

With nextmarkets, you can learn from the expert coaches and see what it takes to identify and execute a successful trade. Setting up a demo account is a great way to learn the ropes without experiencing the losses.

Free share trading software by nextmarkets

How to start day trading now

If you are already confident in your ability and want to know how to start day trading now, the easiest route would be to sign up for a day trading account with nextmarkets. You can either choose a demo account and learn the ropes with virtual currency, or you can get started with trading real money.

Most people who are new to day trading for beginners will try using a demo account for 1-6 months before they are ready for their first trade. They also receive dummy credits in order to start their trading and monitor their progress.

Advice for day trading beginners

Even after you have learned from the experts, have a solid strategy in place and know the current market inside out, there is always homework to be done. Novice traders will often leap into a trade, because they worry that analysis paralysis is holding them back. While there is a virtue in taking-action, there is also a need for new traders to do their homework.

You might be able to spot short-term trends, but there are seasonal and long-term trends which might be at play. Ensure you do your homework before making your first trade with nextmarkets. For investors of any nature, it’s important to keep your emotions separate from the trading side of things to ensure impartial decision-making.

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How to get started in day trading

You could take a course, commit to reading books about day trading for beginners, or you could read online articles and forum posts about how to get started in day trading. In reality, the best way to get started is by trying it out for yourself. Obviously, a demo day trading account won’t be exactly like the real thing.

However, it can give you the experience you need to start day trading with confidence. At nextmarkets, you will learn how to execute trades, the best time of day to trade, and how to mitigate your risk successfully. You can also learn about essential safeguarding techniques such as stop-loss orders.

Moving from demo trading to real trading

Before you get started with day trading with nextmarkets, there are a few things that you will need to understand. The most important is that you could stand to gain or lose money. It’s not uncommon for individuals to get too confident using virtual currencies and then have a poor start when they switch to trading with real money.

Simulations are a great way to learn the ropes, but they cannot teach you how to handle the fear of loss. The good news is that this fear can be controlled by increasing your knowledge. Knowledge is power when it comes to the stock markets.

Next steps for success with nextmarkets

Now that you have a solid understanding of what is required in learning day trading for beginners, the next step is to start practising. Sign up for a free account with nextmarkets and get started trading with 10,000EUR on your very own demo account. Take every opportunity to learn more about the art of day trading until you feel confident enough to start trading with real money. You can get started with as little as 500 EUR.

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