Mentioned below are some of the primary
responsibilities of a day trader:

• Tracking
  daily market developments.
• Conducting
  trades with a short turnaround.
• Using
  their personal accounts to fund trading.
• Understanding
  the various financial securities.
• Selling
  stocks that they believe will fall in value.
• Investing
  in stocks that they feel will do well.

Now, before you could run to become a successful
day trader in the stock market or find the best trading app, you
should first know the benefits of becoming a trader.

Why Become a Day Trader?

• There
  are no hazards to holding a stake overnight. Because day traders close out
  their trading positions before the end of each trading day, they don’t
  have to worry about an overnight news event causing the market to open
  much lower or increase the next trading day – something that could cost
  them money in an overnight position.
• Returns
  on investment compound faster (assuming profitable day trading). You might
  be able to use the earnings from the day before the trading day to trade a
  larger place the next day and make even more money.
• It may
  take less time in total to earn a significant income. Some day traders
  will only make one or two trades per day, and they are usually made early
  in the day. By 10:00 a.m., they have completed their trading task.

How to Become a Day Trader?

a) Do Some Studying

To start trading, you must first open a free Demat
account. This is something you can do with a bank or a brokerage firm. A
reputable broker, such as Motilal Oswal, would provide you with a free Demat
account that is linked to an online trading account. The following stage is to
learn about day trading and how it can benefit you. Simply described, day
trading is the purchasing and selling of stocks and securities within 24 hours
(on the same day).

The purpose is to make money. A day trader would
have closed positions at the end of the trading day, realizing any winnings or
losses. Day trading is never a long-term investment strategy. As you can see,
day trading is dangerous, but helpful hints can help.

b) Put Emotions Away

When people think of a successful day trader, they
envision multimillionaires visiting opulent restaurants and clubs and driving
around in luxury cars. Who wouldn’t be drawn in? However, if you have goals,
ideas, and objectives for being a day trader, you must recognize straight away
that if you let materialistic rewards govern your intentions, you will
certainly fail. Successful traders adhere to their approach rather than their
emotions or wishes.

c) Start Small

When you’ve learned about markets and how to trade
and are ready to enter the market, it’s critical to begin small. It takes time
to learn how to day trade well, and putting a lot of money on the table, to
begin with is a major risk that you, as a beginning trader, should avoid.
Because day trading involves risk, you need to only invest money that you will
be willing to lose. As unpleasant as it may sound, you need to disconnect your
emotions from the funds you use to trade with in order to ensure that your
trading decisions are not emotionally controlled or instigated.

d) A Strategy is Your Holy Grail

The bulk of traders profits from tiny price moves
in liquid equities or indices with moderate to high volatility. To make money,
price movement is required, whether in the long or short direction. The key to
profitable trading is to establish systems for determining entry and exit
positions. Most traders create a style that they stick to once they are at ease
with it. Some people simply trade one or two stocks every day, while others
trade a small basket of favorites, but at the end of the day, remember that
this favored choice is yours to make, and once you make it, you should adhere
to it. Consistency is essential!

Create a procedure and test it with fictitious
deals. Fine-tune the procedure to find what works best for you. Before pressing
the trigger, experienced traders identify what constitutes a trading setup, as
well as the pattern and indicator combination they wish to see.

10 Key Steps to Become a Skillful Day Trader

Where don’t risks exist? They do this everywhere –
especially in the stock market. So, even if you have already been a trader and
hop at the chance of becoming a day trader, there are just some attributes that
you will have to know to become of the best day traders out there. Let’s get
started with those key points:

Step 1: Assess Your Financial Goals and Trading
Potential

When you are a day trader, it demands that you be
more competent down the road. You would have to perform better, and the only
method that you could do that is by assessing the below-mentioned points:

a) Your risk appetite

b) Your period in the market

When you know enough about yourself on these points
– you can always be sure that you have already set the foundation.

Step 2: Your Principal Investment

Losses are part and parcel of your day trading
journey, and when you know that you could possibly lose money – make sure that
you always invest what you have left of your expenses. Never invest at the
stake of your livelihood.

Step 3: Find the Best Securities

Just like shopping for the best quality and price
online, you would have to do so in the stock market. Understand securities, and
also make sure they match the financial goals that you have when it comes to
day trading. This analysis gets you a long way in the day-trading game.

Step 4: Know the Market

You can never analyze the market enough. If there
is one attribute that you would have to understand about the stock market, it
is that you would always keep learning something new about it. It is also an
ever-evolving market, which makes it a point for you to analyze the market
condition well before you can start trading.

Step 5: Strategies are Always the Key-Route

Find new strategies to trade with and use them to
your benefit. Learn them well, and make sure you master them to use them in
your day trading procedure.

Create a procedure and test it with fictitious
deals. Fine-tune the procedure to find what works best for you. Before pressing
the trigger, experienced traders identify what constitutes a trading setup, as
well as the pattern and indicator combination they wish to see.

Step 6: Create a Fool-Proof Plan with a Combination
of Strategy and Plan

The right strategy and a good plan will always go
hand in hand. Unless you have a proper plan, you should know that your strategy
will not even go the way through.

Step 7: Take a Note of Historical Information

Whenever you are all satisfied with the final outcome
of your plan, you can use it as a piece of data to assist you in your future
moves of day trading

Step 8: Money Management is Crucial

Structure and practice trades throughout the day so
your capital allocation and money management plan will always stay intact.

Step 9: Consider Brokerage Fees and Charges

Choosing a broker is important. There are chances
that you might be spending more by choosing brokers who charge high amounts of
fees. Moreover, the larger the number of transactions you have per day might
attract a higher amount of fees. You would have to look for simple and
effective ways to reduce these costs.

Step 10: Always Start Small

Taking tiny baby steps is never a bad idea. Since
you know day trading already involves risks, you can start investing small and
then go big when you know how to day trade in the best manner.

Conclusion

Now that you know how to become a day trader, there is one thing that should never leave your mind – and that is, you will always have to know risks are inevitable.