One of the easiest ways to lose money fast is to jump into the world of trading without a strategic approach to how you’re going to build your portfolio and profits.

At ATC, our products and services are designed to help you learn which trading strategies best suit your objectives. Our online trading platform has been built to allow you to best execute your chosen trading strategies.

As you research approaches to trading, it’s easy to be overwhelmed with complicated descriptions of systematic methodologies. But you needn’t be bogged down with complexities (unless you want to).

Simply, your trading strategy is just a structured plan to achieve your financial goals. Set your objectives, strategise how you will achieve them using tried and tested methods and set your limits in advance to mitigate losses. Working within these predefined criteria is the best way to help you make successful trading decisions in real-time.

Don’t get us wrong, there are highly complex trading strategies with lots of moving parts. It’s vital to ensure you work with sound data, understand market conditions, and define your risk tolerance and time horizon. Just as importantly, have a sharp eye for where and when to shift tactics, as required.

What is Day Trading?

One of the most popular trading strategies is day trading. A well-executed day trading plan can be highly lucrative. However, there are a lot of variables. This equals high risk but high reward. This is where trading strategies come into play.

So, what is day trading, and what does it involve?
Day trading involves buying and selling financial assets, often flipping the same day or several times on the same day to build profit. Seasoned strategic traders can use their knowledge and expertise to leverage seemingly small, incremental price moves upwards or downwards to boost financial rewards. However, if you’re new to trading or haven’t devised a clear day trading strategy, you may find yourself exposed to losses.

So, now you know what day trading is, let’s look at some day trading rules. Stick to these tried and tested practices for the best shot at financial success.

Knowledge is power

Arm yourself with simple trading processes and stay abreast of the latest market news, company and industry financials and what’s going on in the global economy. Not arming yourself with the power of knowledge can be a fast way to failure.

Stay realistic

Winning can intoxicate you and lead to diving into high risk for high reward trades. Ensure you stay grounded in reality and don’t let the markets suck you in. It’s better to build profit slowly and incrementally than expose yourself to risks you can’t afford, particularly when leverage and margin are involved.

Clearly define your entry and exit points

This ensures that your predefined boundaries can help you mitigate loss and confusion when emotions are running high.

Too many plates

In your early days of trading, avoid overloading your portfolio when day trading. Instead, choose one or two to focus on and manage hands-on should you need to exit early.

Avoid untrusted sources

Your trading decisions should be based on reliable, validated data, insights and market information. Any unsolicited tips or offers should be avoided immediately.

Swing Trading vs Day Trading

Another type of trading you may consider is swing trading. Here we’ll explore what swing trading vs day trading is.

There are many similarities between both types of trade. Both aim to build financial rewards from short term stock price fluctuations. However, where day trading uses highly technical strategies, data analysis and charting over a day, swing trading involves trading stocks, commodities, and forex over days and weeks. As the name suggests, swing trading relies on spotting swings in the market, taking your position and allowing time for the asset to work itself out.

ATC as a Trading Platform

So you’ve dipped into the rules, learned several strategies and done your own research. If you’re ready to get started, ATC offer instant access to online trading on one of the UK’s best day trading platforms.

• An intuitive, user-friendly digital interface
• In-depth strategic support and market analysis
• The latest trading news and economic views
• An economic calendar designed to help you devise your trading strategy

Set up a demo account today, or if you’re ready to start live trading, create your personal trading account now.