When it comes to ‘day trading’, it’s all about of buying and selling of stock within a day. Being a day traders, definitely there is leverage in capital to get benefits from small price fluctuations in highly liquid stocks. If investing as a beginner in stock market, here are some common day trading strategies which will be beneficial in this volatile market.
Its Important To Have Proper Entry & Exit:
Liquidity and volatility are the major aspect, which the day trader looks for, whereas liquidity helps to get enter and exit a particular stock at a good price. On the other hand, volatility is used to determine the expected price on daily basis. Also, increased volatility tends to high profit or loss. After purchasing the stocks which you require, you need to determine the possible entry points. Therefore, here are some tools which you must implement.
Intraday Candlestick Chart: Intraday candles are the best Stock Picks which will equip you a rough analysis about pricing action.
Real Time News Service: Get Real Time News, as this will provide you update information about stock movement.
Determining a Stop Loss:
During marginal trading, the chances of getting vulnerable are more as compared to regular traders. Therefore, implementing stop loss strategy is important during intraday trading. The two stop loss strategies to implement are as follows:
- A physical stop-loss order that is positioned at particular pricing level should match your risk tolerance.
- The mental stop-loss is positioned where your entry criteria get violated, which means that if the trade gets against your expectation, you have to exit your position immediately.
Evaluating the Performance:
Many beginners step into the intraday trading to generate maximum returns on daily basis but in fact, traders lose their hardly earned capital. However, by implementing accurate stock trading signal with well defined strategy, it’s possible to make the most of intraday trading.
The Final Word:
As stock trading is not profitable on daily basis until you don’t have the proper understanding of stock market. In addition to this, the above mentioned strategies can help you to develop a profitable strategy to perform in day trading consistently. Additionally, the deep market research will help traders to take correct investment decisions.
you have discussed very good topic here. Most important step is when to entry and exit. we trader should take a look at these chart intervals and how we can use them to our advantage. Tips for candlestick charts
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