Day trading refers to short-term trading were the trader squares off the position on a single day.
Beginners get overwhelmed when they day trade because it is fast and very aggressive. There are a few strategies that you should apply when you do day trading.
When you trade intraday then look for a scenario where the demand and supply are imbalanced and then use this to enter the trade. The financial markets are very similar to your life where the supply exhausts and the demand leads to the price go higher. On the other hand when the demand is low and the supply is less than the price goes down. This has happened historically and will happen in the future as well.
Always set a price when you are trading intraday. This should be decided in advance. A day trader will have to get out of the trade in a single trading day and thus he should fix the stop-loss and target price before taking the trade. As a day trader, the prices should be very close that can be achieved in a trading day.
Make sure that the risk: reward ratio is met. A day trader needs to keep a risk: reward ratio of at least 2:1. This will let you be right one time for being wrong two times to end in green. Always make sure that the risk: reward ratio is more than 2:1 or higher.
Day traders need to be patient. There are high changes to jump into a trade when you are a day trader. Most of the times the market could be horizontal and that time traders are tempted to take any trade that they see. This is because they are getting bored or frustrated for not getting any trade. This is something that needs to be controlled. Always plan your trades and then stick to your trade plan.
Day trading requires discipline and if you are a beginner then you need to stick to your trade plan. Have a trading plan and do not stay away from it. You should also review your trade plan from time to time but take care to not keep changing the plan after every trade. Have a sample of trades and only then decide whether your trade plan needs changes.
Is it a safe option to day trade? Yes, it is provided you do it right and take care to follow all the trade rules. Keep emotions aside and trade only when you get the right trade set up.