Our smartphones are an invaluable tool for staying connected. We have access to a wealth of information, and you can connect with other people almost instantly. This makes your smartphone a productivity booster as well, since you can leverage tools to make use of that information. In fact, you can even day trade on your mobile. Here’s what you need to know before you begin day trading on mobile.
Find the Right App
The most important thing when trading via smartphone is to start with the right app. A good app will give you enough information to make the right trade without overloading you with information or filling the screen to the point it is hard to read.
Pick an app that gives you timely market updates and info on trends along with current prices of what you currently own. Don’t assume that news apps are useful in this regard because most of them only give you the news. Furthermore, you need to ensure that the app supports your trading style.
Have the Right Mindset
Too many potential mobile day-traders are in the wrong mindset when they’re day-trading. They treat it like a gaming app instead of a serious financial transaction. They forget that they’re really making trades.
One solution to this is to only trade when you have the right mindset, such as when you sit down to check on the market. Another solution is to have the right goals. If the trade doesn’t meet your thresholds, don’t make the trade. Don’t make the mistake of buying and selling because you’re bored and it makes you feel like you’re being productive. For example, if you’re using position trading to earn money for long-term goals, don’t start aggressively day-trading cheap stocks.
Pay Attention to the Costs
Read the fine print before you sign up for a free or low-cost trading app. They could have hidden fees or an account minimum that costs you if you aren’t careful. You might have to pay for a more user-friendly app or access to more information.
Know what you want from the app, and compare that to their fee schedule. Run the numbers, because it might be worth paying a few pounds more to not have to research information outside of the app while analysing an opportunity. This could include user forums, market alerts, newsletters, or access to professional advisors. Or, you may want the ability to sync your phone with your computer. Then you’ll have the same information about the potential investment and history of the transactions you’ve made to date when you sit down at your desk.
Manage Your Risk
Consider starting with small amounts on your first trades. When you start small, you minimise how much you can lose as long as you aren’t trading on margin. You have an incentive to slowly grow the account so that you can make larger plays. You’ll learn more effectively this way.
Knowledge is the key to success with day-trading. Learn more about potential trading apps before you install them, and learn as much as you can about trading before you start using them.