3 best Stock Tips for day trading/traders

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I always like long term investment strategies and always back them, however many of the stock investors invest for short terms and many do day trading of stocks to earn fast buck, which may not give high percent returns but is surely fruitful if done with great acumen and with the correct stocks.

Day trading of stocks is a risky affair as it doesnot follow any basics of stock investing and is mainly done on gut feeling and risk taking abilities of the potential investors. There are several important tips which are very vital for doing day trading, Adding that Indian Stock markets are highly volatile so these stock tips for day trading become even more important to follow, so that the risk is minimised.

So here are the 3 day trading tips which a intraday trader must know for minimising the loss. These Intrady trading tips would surely help those who are yet to start with day trading or who is already a day trader.

1. Stop Price - The most important stock tip for day trading is that one must know the nearest resistance level of the stock on the lower side and should always use stop limit in such case, A stop will be triggered when the stock price goes below the stop price. It is basically you are defining a selling price at which the stocks would be sold thus saving your losses incase the stock price nosedives further. If you are not sure about the brought stock then the best option is to use Stop Price.

2. If you own a stock which has gone up sharply but with very less volume traded then you need to sell this stock as something is fishy in such case, the reason is that because only few people purchased but don't have reason and because of big move other persons(which already have the stock) will be interested in selling the stock after this big rise, that's why the stock will probably go down on selling hence you can be in losers list. If there is large volume traded for a stock, then go by the other investors and just follow what the other people having same stock are following.

3. Uptick rule for day trading - When you put a market order to sell a stock, you need an uptick to be executed. If this don't happen and the stock
continue to fall, and fall again and after 2% down an uptick occur, you will be executed at that price. With this you will either miss big moves because limit order or loose money because big slippage.