Day trading is a technique in which stocks are bought and sold on the same day. This is very risky for beginners and non professional traders. However, most of the traders like only day trading. Here are some trading techniques to improve yourself like a professional trader from beginner.
Selection of stocks
Picking a stock for day trading is very important because if selection is right, then you will make a profit. Try to select a stock from derivatives market which has higher volume in a day. High volume indicates that price action will come in this stock during day trading. For the selecting of high-volume stock before the market opens, take a look on the stock which is in the news for the day. Volumes should be greater than average volumes of last ten days in same stock.here is chart which confirms price action depends on volumes stock.
Buy or sell the stock.
Wait for at least fifteen minutes after the market opening and look on the direction of the stock if the stock is trading near day's high with huge volume, then buy the stock else stock is trading near the day's low with greater volume, short sell it.You can also consider the direction of the stock from previous days action.
Stop-loss level in day trading
Generally, a stop loss is set on previous day's low for buying side and previous day's high for sell side by the experts.Stop loss can be selected from the hourly chart of the stock.
Averaging the stock
average your stock if price falls from your buying/selling point. take also partial profit during day trading.
Selection of stocks
Picking a stock for day trading is very important because if selection is right, then you will make a profit. Try to select a stock from derivatives market which has higher volume in a day. High volume indicates that price action will come in this stock during day trading. For the selecting of high-volume stock before the market opens, take a look on the stock which is in the news for the day. Volumes should be greater than average volumes of last ten days in same stock.here is chart which confirms price action depends on volumes stock.
Wait for at least fifteen minutes after the market opening and look on the direction of the stock if the stock is trading near day's high with huge volume, then buy the stock else stock is trading near the day's low with greater volume, short sell it.You can also consider the direction of the stock from previous days action.
Stop-loss level in day trading
Generally, a stop loss is set on previous day's low for buying side and previous day's high for sell side by the experts.Stop loss can be selected from the hourly chart of the stock.
Averaging the stock
average your stock if price falls from your buying/selling point. take also partial profit during day trading.
