What is day trading?
It is buying and selling stock during the market hours in one day.The day trader is one who makes trades(both buying and selling) on different stocks within a single trading day. Intraday trading is riskier than investing in the stock market.Knowledge and experience is vital for day trading. The day trader makes a profit based on the volatility of stock prices during the market hours.
Trading is risky and traders who have the discipline and patience to follow these 10 tips below can increase their chance of success in the stock market.You need to track your market position carefully to get an opportunity to buy or sell the stocks. Intraday trading is a great method of making fast profits provided you pick the right stocks at right time .Hence you should have a strong knowledge on technical analysis .Forthat you can refer some of the best technical analysis books of all time.Traders must not risk over two per cent of their total capital on trading to ensure the right risk management.
1 STUDY THE STOCK MARKET THOROUGHLY. 2 START WITH SMALL AMOUNT FIRST. 3 DO TRADES WITH STRICT STOP LOSSES. 4 MUST CHECK THE BROKERAGE BEFORE DOING TRADES AND ANALYSIS WHETHER THEY WILL EAT UP ALL OUR PROFITS. 5 WATCH THE DAILY STOCK MARKET NEWS AND ANALYZE WHICH SECTOR IS MOVING THAT DAY AND DO TRADES ACCORDING TO THAT. 6 SELECT THE BEST DISCOUNT BROKER 7 NEVER OVER-TRADE BY EMOTION. 8 DON'T JUMP INTO A TRADE, WAIT FOR THE PERFECT OPPORTUNITY. 9 TRADE ONLY WITH THE MONEY YOU CAN AFFORD TO LOOSE. 10 FOLLOW THE MARKET TREND. NEVER TRY TO BEAT THE MARKET.