Day trading is the strategy by which market operators take a position (either buy of sell) in a particular financial security, which is listed in an exchange and traded, at a certain point of time and price and subsequently reversing their positions at any time before the close of Day's trade, thus making profit in the transactions.For better day trading proper share tips must be taken.
Anticipating the movement of the stock. Once stock (shares of a Company) is selected, the next step is to anticipate the response of the other traders with respect to particular stock selected (just like the chess player anticipates the moves of his opponent by selective intuition of the various moves that his opponent can make) and preempt the move of other players.
Some points that must be kept in mind before indulging in day trading.
Disciplined approach. The day trader has to be very disciplined in his approach and not swayed by greed. One has to decide to what extent to trade (in terms of booking of profits or leveraging on margin money) and has to stick on it.The day trader must remember any profit (however small it might be) is better than a loss.
Emotional and philological strength of day trader. There are times when panic creeps in seeing the loss position in a fast paced market. The day trader has to keep his nerves and stick to his discipline.
Allocation of money for day trading. It is important that the day trader does not commit his entire money on day trading and should allocate only some portion so that he has some financial cushion in a worst case scenario.
Experience and expertise. Fair amount of experience and expertise is required for indulging in day trading. Day trading is not a place for beginners.
Anticipating the movement of the stock. Once stock (shares of a Company) is selected, the next step is to anticipate the response of the other traders with respect to particular stock selected (just like the chess player anticipates the moves of his opponent by selective intuition of the various moves that his opponent can make) and preempt the move of other players.
Some points that must be kept in mind before indulging in day trading.
Disciplined approach. The day trader has to be very disciplined in his approach and not swayed by greed. One has to decide to what extent to trade (in terms of booking of profits or leveraging on margin money) and has to stick on it.The day trader must remember any profit (however small it might be) is better than a loss.
Emotional and philological strength of day trader. There are times when panic creeps in seeing the loss position in a fast paced market. The day trader has to keep his nerves and stick to his discipline.
Allocation of money for day trading. It is important that the day trader does not commit his entire money on day trading and should allocate only some portion so that he has some financial cushion in a worst case scenario.
Experience and expertise. Fair amount of experience and expertise is required for indulging in day trading. Day trading is not a place for beginners.
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