As a beginner trader, you need to understand the different trading time frames available. There are actually 4 time frames to choose from. The first one is the day trading, then the swing trading, intermediate trading and lastly, the long-term trading time frame. But if you're a beginner trader, I would encourage you to choose the swing or intermediate trading time frame.
In day trading, everything moves fast. Stock price moves fast and it fluctuates fast that it can make you cry. You will be bombarded with countless information that only an experienced and knowledgeable trader can handle well. Beginner traders will really find it very daunting and challenging. And because they don't know what to do, they may eventually lose money in their trades.
Here are the benefits of swing trading:
1. You give yourself time to adjust to trading: Trading needs practice and time to get used to. If you want to become a profitable trader, you need to adjust to how the market behaves. With the swing trading time frame, you have the opportunity to do exactly this.
2. Identify the overall trend: Day traders capitalize on the slightest fluctuation of the price movement to gain profits. On the other hand, swing traders wait for a trend to form before they actually get in a trend. This helps them secure their trades. In this time frame, you'll see the beauty of trends and reversals.
The stock market can be compared to traffic hours. Day trading happens during the rush hour when traffic is just tight. Everybody is busy taking care of their own business. Everything looks and sounds like one big mess. Swing trading on the other hand happens in between rush hours. You get to maneuver your car in different lanes without any hassle. Traffic is definitely tolerable. If you're just learning how to drive, which scenario do you prefer? I don't know about you but I prefer driving in an empty street since I just don't have to deal with the risk of bumping into any car because of my lack of experience. As my skill progresses, the more comfortable I will feel driving next or behind another vehicle. This is due to the fact that I already know what to do and what to expect. It's the same concept with trading the swing trading timeframe.
Starting out as a swing trader or an intermediate trader is the best way to be inducted to trading. This is what I believe. Although I am not encouraging beginner traders to start as a day trader, you can still trade this time frame though. However, never do so without proper training, education and guidance. If you really want to be a day trader, you need stock market education, experience and consistent guidance from a trading coach. In order to be a successful trader, you must never skip or reject these 3 factors I just mentioned.
Before you take day trading into serious consideration, try reading more about swing or intermediate trading first.