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People often want to board the day trading train in order to make quick money, but very few suceed in making big while doing day trading. Ease of starting day trading by simply sitting at your home is one of the factor for it's popularity. However lot of people leave it within a year saying that day trading is not their cup of tea. The participants in day trading are not limited to professional traders, retirees, executives, teachers, small business owners, housewives, etc. Remember, earning profits in day trading over a period of time is not a CHILD's PLAY!
One has to follow some rules for day trading, especially when you are a newbie in this field. These rules/guidelines are very basic and are not binding (as exceptions are always bound to be there), but these definetly helps in making informed decisions needed for making a good investment. Basically these are guidelines and not rules.
1) Knowledge:
'Knowledge' wrto Day trading includes information about the basic trading procedures and tools, information about stocks you plan to trade (like company financials, reports and charts), knowing the latest in the stock markets, keeping track of events that affect stocks, etc. Day trading can become more difficult and risky in the absence of knowledge. As a rookie, do your homework; make a list of stocks which are on your wish list, keep yourself informed about the selected companies and general markets, scan a business newspaper and visit reliable financial websites on a regular basis.
2) You need to be Realistic for returns:
Being realistic about profits is important. As you gear up to trade, make sure that you don’t lose out on decent gains in the greed for more! Markets are tricky and it’s better to settle down for a smaller profit than ending up losing heavily. If required, you can always buy the same stock when it dips. Every small profitable trade will help boost your confidence and also give you a chance to try out the strategy again.
One has to follow some rules for day trading, especially when you are a newbie in this field. These rules/guidelines are very basic and are not binding (as exceptions are always bound to be there), but these definetly helps in making informed decisions needed for making a good investment. Basically these are guidelines and not rules.
1) Knowledge:
'Knowledge' wrto Day trading includes information about the basic trading procedures and tools, information about stocks you plan to trade (like company financials, reports and charts), knowing the latest in the stock markets, keeping track of events that affect stocks, etc. Day trading can become more difficult and risky in the absence of knowledge. As a rookie, do your homework; make a list of stocks which are on your wish list, keep yourself informed about the selected companies and general markets, scan a business newspaper and visit reliable financial websites on a regular basis.
2) You need to be Realistic for returns:
Being realistic about profits is important. As you gear up to trade, make sure that you don’t lose out on decent gains in the greed for more! Markets are tricky and it’s better to settle down for a smaller profit than ending up losing heavily. If required, you can always buy the same stock when it dips. Every small profitable trade will help boost your confidence and also give you a chance to try out the strategy again.
