How to know if you're ready for day trading
Hello doston! Angel One ke ek aur podcast mein aapka swagat hai.
In this edition of the podcast, hum ek bahut important cheez discuss karenge. Ye ek aisa sawal jiske baare mein aapne shayad abhi tak kaafi soch liya hoga -
Are you ready to start day trading?
Part 1- Intro, let’s begin……….
As you already know, stock market mein 2 types ke retail participants hote hain - long-term investors aur short term traders. Usually, people who want to start investing begin as long-term investors. Long-term investors iss intention se stocks buy karte hai that they can hold it for a long period of time and wait for it to gain value before selling. Inka investment horizon usually 1 year se zyada hota hai.
Meanwhile, short term traders or day traders are those who buy stocks to sell them at a specific price, usually within the same day. Naturally, dono types ke investment mein bohot difference hai. Day trading is comparatively very demanding, kyon ki ye ek investment choice hi nahi, but ek lifestyle aur career choice ban sakti hai.
So, to answer the question “Are you ready for day trading?”, let’s have a look at what is needed to become a day trader.
Day traders usually aise individuals hote hain jo well-established hain, aur jinko market ki bahut acchi knowledge ho. This is why it's not everybody's cup of tea. But if you are wondering agar aapke paas day trading ka aptitude hai ya nahi, ask yourself these questions -
Aapke paas kitna market experience aur knowledge hai?
Jab hum marketplace experience aur knowledge ki baat karte hain, what we mean is whether you have an understanding of the market as well as the assets and products you want to trade. Moreover, aapko fundamental analysis aur technical analysis ki kitni understanding hai? Doston before making the decision to become a day trader, aapko apna aptitude aur knowledge assess karna hoga.
Aap kitna capital investment afford kar sakte hain?
Unlike long-term investment, jo aap ek chhote amount se ya recurring SIPs ke saath karte hain, day trading ke liye capital ka requirement zyada hota hai. Plus, aapko ek margin account bhi maintain karna hoga jisse aap ek volatile market mein unexpected price rises short notice mein meet kar payein.
Day traders usually bas itna ki risk capital invest karte hain jitna wo lose karna afford kar sakte hain. But because day trading requires more capital, investors ko ye amount bohot carefully set karna hota hai.
Aap kis strategy ko use karna chahte hain?
All serious day traders use one trading strategy or the other. Swing trading, arbitrage, mergers and acquisitions ya trading news par based day trading unko ek streamlined aur disciplined tareeke se trade karne mein help karti hai. But remember, inn strategies ko master karna is not an easy task. To make consistent profits and ensure minimal losses, aapko practice aur patience ki zarurat hogi.
Kya aap disciplined hain?
Sticking to your strategy and meeting your own criteria are important for discipline in trading. Moreover, kisi bhi company mein emotionally invest karna day traders ke liye sahi nahi hai. Emotional involvement ki wajah se aap kisi company ke shares zyada time ke liye hold karke reh sakte hain, even if you should have sold them earlier.
Kya aap apni day job give up kar sakte hain?
Making the decision to quit a comfortable day job can be a difficult decision. Aise commitment ko banane se pehle apne saare options closely examine karein. In fact, if it is possible, try karein ki aap apni job ek slow aur steady tareeke se phase out kar payein. This will give you the time to become accustomed to trading while also ensuring ki aapke paas ek steady source of income bana rahe.
Doston, agar in questions ko answer karne ke baad aapko lagta hai ki you are cut out for a career as a full-time day trader, you should look at the next step - getting the resources for day trading.
As a day trader, aap kisi badi organisation ke liye kaam kar sakte hain ya individually bhi kaam kar sakte hain. If you are working for an institution, aapke paas ek trading desk hoga, bade amounts mein capital hoga, aur expensive analytical software bhi hoga. Ye resources ek full-time trader ki bohot help kar sakte hain.
A trading desk allows traders to carry out orders instantly. Jab price movements bohot sharp hote hain, such a resource can be very useful.
Alag-alag sources se trading news ka access is very important for an aspiring day trader. News organisations ki coverage, news wires aur software that analyzes news are some of the staples jo ek day trader ke paas honi chahiye. Other resources like an economic calendar, a trading platform and a trade journal will also help you excel agar aap ek day trader banne ka decision le lete hain.
Doston, day trading karna ek bahut bada commitment hai. Aapko apne finances, career, lifestyle aur resources - sabke baare mein soch-samajh ke hi ye decision lena chahiye. We hope iss podcast ke zariye aapko apna decision banane mein kuch clarity mili ho!
Before we sign off from today’s podcast, let us remind you that all investment decisions should be made after carrying out thorough research. This podcast has been made for educational purposes only and as an investor aapko thoroughly dusre sources se bhi research karna chahiye.
Hum aise podcasts se aapko aise hi interesting investment topics ke baare mein insights dete rahenge, so subscribe to our YouTube channel and follow us on other social media platforms. Until then, happy investing and goodbye!
Investments in the securities markets are subject to market risks. Read all the related documents carefully before investing.