Day Trading - How To Succeed?
Definition Of Day Trading
The practice of buying and selling stocks, stock options and currencies within the same trading day so that there is no outstanding left at the end of the day is referred to as day trading. This practice was originally followed by investment firm employees who were specialists in investment. But with the electronic way of trading having made its entry into the market, day trading is now practiced by many people who are at the most casual traders.
Day trading can be risky
Traders have now found that day trading is one of the best ways of making money. Whether you are into day trading as a professional or are just trying to increase the sources for your income, day trading has proved its potential for making money if due care is taken and proper norms are followed. Day trading can be risky but unless you take risks and make the correct decisions, there is no way you can maximize the profits from day trading.
Tips for a day trader
You can earn money from the stock market if you purchase stocks when the costs are low and sell them when the prices increase. Though the process sounds fairly simple, it is this judgment of the time to buy and the time to sell that differentiates a successful day trader from the rest. In day trading you must always keep yourself well informed about the market. A lot of printed matter is available and most newspapers devote large sections of their daily issues to the stock market.
The internet is another source of information. Nowadays there are also TV channels dedicated solely to the stock market and viewing these can always keep you up to date. Do not overload yourself with information and limit yourself to reading, surfing the internet or viewing the channels that you are comfortable with. Limit your day trading activities to just a few shares that you think are the best for you and concentrate on learning all you can about them. Also see that you are always well aware of the stock market in general and the movements of the shares of some of the larger blue chip companies.
If the stocks you have selected do not show much movement over a period of time, remove them from your list of day trading stocks. It is only when prices change that you can make any sort of profit. See that you are capable of analyzing quickly, the data on the stocks you have bought. This will enable you to take immediate decisions which could affect your profit. Remember that a small movement of just a percent or two in a day translates into huge amounts throughout the year, and you may find that you have to take a chance on quite low percentage movements.
Keep your emotions always in check. A very good profit van also be followed by a loss and you need to keep your perspective and constantly see that you are ahead of the game, and not allow emotions to cloud your judgment.
Summary
Day trading can make you a fortune if you persist with some sensible trading. Keep your knowledge about the stocks you deal in up to date, have a limited portfolio which is easy to manage, the analysis of the price changes and decisions to buy and sell are correctly made and you keep your feelings well under control. - 23212
The practice of buying and selling stocks, stock options and currencies within the same trading day so that there is no outstanding left at the end of the day is referred to as day trading. This practice was originally followed by investment firm employees who were specialists in investment. But with the electronic way of trading having made its entry into the market, day trading is now practiced by many people who are at the most casual traders.
Day trading can be risky
Traders have now found that day trading is one of the best ways of making money. Whether you are into day trading as a professional or are just trying to increase the sources for your income, day trading has proved its potential for making money if due care is taken and proper norms are followed. Day trading can be risky but unless you take risks and make the correct decisions, there is no way you can maximize the profits from day trading.
Tips for a day trader
You can earn money from the stock market if you purchase stocks when the costs are low and sell them when the prices increase. Though the process sounds fairly simple, it is this judgment of the time to buy and the time to sell that differentiates a successful day trader from the rest. In day trading you must always keep yourself well informed about the market. A lot of printed matter is available and most newspapers devote large sections of their daily issues to the stock market.
The internet is another source of information. Nowadays there are also TV channels dedicated solely to the stock market and viewing these can always keep you up to date. Do not overload yourself with information and limit yourself to reading, surfing the internet or viewing the channels that you are comfortable with. Limit your day trading activities to just a few shares that you think are the best for you and concentrate on learning all you can about them. Also see that you are always well aware of the stock market in general and the movements of the shares of some of the larger blue chip companies.
If the stocks you have selected do not show much movement over a period of time, remove them from your list of day trading stocks. It is only when prices change that you can make any sort of profit. See that you are capable of analyzing quickly, the data on the stocks you have bought. This will enable you to take immediate decisions which could affect your profit. Remember that a small movement of just a percent or two in a day translates into huge amounts throughout the year, and you may find that you have to take a chance on quite low percentage movements.
Keep your emotions always in check. A very good profit van also be followed by a loss and you need to keep your perspective and constantly see that you are ahead of the game, and not allow emotions to cloud your judgment.
Summary
Day trading can make you a fortune if you persist with some sensible trading. Keep your knowledge about the stocks you deal in up to date, have a limited portfolio which is easy to manage, the analysis of the price changes and decisions to buy and sell are correctly made and you keep your feelings well under control. - 23212
About the Author:
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posted by X - Men @ 3:19 PM
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