How to make money in day trading Mandar jamsandekar PDF?

Fig.1: Day Trading in the Swing Market

I highly recommend day trading, especially at a shorter term time frame. You get more leverage, you get a more controlled market for your strategy, and you get the option to make more money. When a 5 dollar position doubles to 10 bucks in 20 minutes, your stake doubles, which means you get $10 the higher your trade size is.

When it comes to beginners, one of the best parts of day trading is the use of stronger utilization of leverage. The spread between risk and reward gets bigger, which I bet is what beginners are most inclined to take the most advantage of. This is not how most people see day trading, and even that is a bit of a misnomer, you don’t get too much reward per $100 on day trading.

I’m going to show you three easy ways to begin and tweak a day trade strategy to be able to turn a decent profit at a much lower cost.

[Five Tips] Strategies You Can Use In Day Trading

Reason 1: The Hunt For Cash

Cash is one of the most abused asset classes in the market. Really quick. Cash is the word you want to see if it is green. Regardless of whether it is a thousand dollars, only one should fight a sore arm for a few hundred bucks. Playing the market is all about winners and losers and how they play their hand.

I’m going to briefly explain the premise of using big money advantages to minimize risk. We will not go into the details about using momentum and short-term technical analysis, nor will we do much about technicals’ superpowers. If anything, technicals are not the reason why day traders profit. It is about trying to find the biggest cash load you can earn on a day that will make the biggest money.

The following simple formula can show you all the tricks of how to use leverage for your favor.

Your reward is the output over the amount you put down for the trade. Therefore, your reward is the spread between your position loss and reward. [Five Tips] Strategy You Can Use In Day Trading

Figure 2: Day Trading

Maintain a minimum increase of 1% on each trade. This does two things. It says you are taking a risk of between one and three dollars for $100. Any better than this and you have been shorting your trade, which is a huge exception. In terms of your reward, $1,000 times 50 is your catch-all margin—the higher the better. At this point you are way above the market, which means you get double your margin. You want to keep playing. You are sure to catch a losing trade if you were looking for an easy buck.

It is not too hard to put the reward right around $3,500—which is so wide, it opens up the market to everyone. Over three thousand dollars is a way above the market. It’s the level at which the market looks very overstretched, and since it is a non-market phenomenon it takes just a couple of minutes. Whenever you are looking for a way to make a profit, you want to get your trade right at the edge of the overbought (dull) market before everyone realizes it and gets worried.

[Five Tips] Trade Strategy To Make First $100

For some folks who have entered the market before, a high reward ratio like this makes them feel overwhelmed. This article is specifically written for those who are new to day trading.

Finally, the last element of the formula is your leverage. What is leverage? Leverage is the money you are allowed to put down for a trade. For example, if you have a $50,000 position, your leverage is 1:10.

There are tens of thousands of individual positions in our market every day. Which means we need to have margin in many, many accounts. I recommend applying a minimum of 10 to 100% (10 X 100) to avoid being too heavily risk adverse.

Your potential profits depend on your leverage and position size. If you can find a ratio that looks right, there’s a decent chance you will make money in the game.

[Five Tips] Risk Management Is A Strategy for Day Trading

At the end of the day, day trading is about playing short-term fundamentals. The trend often knows the opposite trend of the market, and to reverse the direction of the trend requires some intervention—call it “kicking the can down the road” when you get a position that is lagging. It’s like being a drummer in a band. If the music you want to play is playing backwards, you know you are wrong and you are going to start hitting the ground—but you are only going to