What type of trading is preferred for beginners who just started in the market?
As a beginner, I would suggest you to be on the sidelines and watch how the market plays.
Intraday is something which will come first for a beginner to make some money,but let me warn you,its a TRAP.You will get some initial quick bucks(beginner’s luck as Paulo Coelho says in Alchemist) but once you are in to it,you will start losing heavily,washing away your capital with in days (I blown my capital,when I started ).If you are very keen to try on Intraday,follow minimum loss techniques like BTST,STBT(Buy today sell tommorow) or scalping or put a strict risk reward ratio of 1:2 or 1:1.5.
Long Term This is something which made all the billionaires in the market .Do some extensive research on Fundamental analysis of stocks and invest in quality shares.You can do research on your own or can follow any expert advice.Though the money wont come as quickly as in Intraday but it guarantee that you wont end up with big losses.
Research This is what a beginner should do for atleast 6 months,get familiar with the terms and technical/fundamental analysis.Watch youtube live trading views and check thier strategies with minimum capital and learn from your trades.
Happy Trading,All the best
Basically Trading is of two kind in my view.
One is intraday and other one is swing trading.
In intraday or day trading, you can buy a stock in morning or at any preferred time and you can sell it as soon as you make some profit (which can be loss also of your trade goes wrong) on the same day. This is the biggest advantage of it.
In swing trading, you buy stock today and you sell it may be after a week or months whenever your target price is achieved.
In my opnion, a beginer should always start with swing trading with predefined risk.
One should not start directly with intraday trading. The reason behind is that it gives reward so faster that a person loose his patience to earn money. Its a phsychological part which is 100 percent true and happens to most of retail investors. And becouse of that if in intraday trading you just made a loss, then you will immediately start overtrading to cover your losses and definately you r gonna loose more n more becouse we want our money back in the same speed as we lost it in market and this makes intraday trading a kind of gamebelling.
So first one should start with swing trading and then if he or she fits good in it then they should take part in intraday trading with their proper risk management and research/technical analysis.
For beginners, it’s recommended to start with:
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Position Trading: Holding positions for a longer period (weeks, months) to ride out market fluctuations.
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Swing Trading: Holding positions for a shorter period (days, weeks) to capture price movements.
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Day Trading(with caution): Buying and selling within a single trading day, closing positions before market close.
These styles are preferred because they:
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Involve less complexity
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Require less time commitment
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Expose you to less risk
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Allow you to learn and adapt gradually
It’s essential to:
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Start with a solid understanding of trading basics
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Develop a trading plan
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Set clear goals and risk management strategies
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Practice with a demo account or small live account
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Continuously learn and improve
Remember, trading involves risks, and losses are possible. Begin with a cautious approach, and as you gain experience and confidence, you can explore more advanced trading strategies.
Paper trading is the only type of trading suitable for beginners. You can trade on a simulator and you don’t have to risk losing any money. Over the long term 95% of traders will lose money, and initially this is virtually 100%. There might be someone who gets lucky and just straight makes money, but it usually doesn’t last. This would be like 1 in a million or more. Very unlikely. So paper trade.
Start out with 3 simulator accounts. Have a day trading account, a swing trading account and a long term investing account. You can also add other accounts for different strategies, or reset them if they aren’t going very well. Once you are consistently making money for at least a month (many people suggest 6 months of consistent profits…but most people aren’t that patient), you can start live trading very slowly. Even one share at a time is ok, or a $1 or $10 stop loss. Make it very comfortable and boring. Then once you make a certain amount…$10 profit, $100….whatever you decide, you can increase your stop. If you do this over time you will be in a good place. If you lose money (say an equal amount $10 or $100) go back to paper trading and start over. This happens more often than people admit because often our trading strategies are configured (optimized) to the recent market conditions, which can then turn on a dime. By doing this you can greatly limit your losses. It sounds time consuming and boring…it is…but when you consider that almost everyone loses money at first, it is the way to go.