Day Trader Trading
Intraday trading, also known as day trading, is a very common and popular
approach to trading stocks, futures and forex in which traders buy and sell a
positions within the same day, clearing out all positions by the end of the
Intraday trading is also known as risky trading, as the trend of the entire
market or a particular position can not be predicted perfectly, even for a
single day. Making profitable buy or sell trades in Intraday is not that easy as
it seems to be. Movement of a position might get reversed, no matter if the
entire market trend is favorable to your expectations.
In day trading, you get less time to select a particular stock, futures or forex
symbol and to decide whether and when to buy or sell, in order to maximize your
profits. The most important and key issue while day trading is to reduce losses
or bad trades. This is often known as principal of limiting your losses. For
this you keep a "stop loss" which can help prevent you from realizing huge
Day Trading Tips
In intraday trading, a trader makes profit by taking advantage of small
(sometimes big), single day price fluctuations in highly liquid stocks, futures
or forex symbols. To make a profitable trade, traders follow some common
intraday trading strategies.
Before picking a position to trade long or sell short, check out its total
buying and selling trading volume. An increase in buying volume indicates that
the positions price might rise and for an increase in trading volume to the
downside, would indicate a potential short selling position may be in order.
Wait for the Right Price
Wait for the right price to enter in the trade. Do not make decisions based on
speculation or pressure from other traders. Keep an eye on fundamentals along
with movement of charts and enter only when it reaches the target buying/selling
price (execution price).
Strict Stop Loss
A position might behave just opposite to what you have expected or what is
depicted by the charts. This happens due to sudden bad news or other factors
which affects the market adversely. So keep a tight stop-loss limit to help you
avoid huge losses.
Do Not Over Trade
Do not put all your capital in a single position or a single day trade. Do not
expect huge profit from a single trade. Rather, trade different positions, make
small profits in each and watch the gains add up to potentially make a good
return on your trades.
Wait, Watch and Then Decide
Wait for right time to enter a trade in the market and then decide to take a
position. Act and react.
Intraday trading takes much determination, decision making power and great deal
of your sixth sense, to make your trading profitable. An alternate way to go for
day trades is to take third party advisory services providing premium intraday
trading tips for day trading.