Day trading means buying and selling a security within a single day. Day trading happens is many market place but mainly in the forex market and stock market. It is an act of buying and selling stocks on the same day, it is a method of earning a profit by taking advantages of small moves of the price of a stock. Intraday traders are professional traders who are well aware of the market. They have a better knowledge about the stock market and various technique of earning more profit from the market. It is not for everyone it is often done by experts of the financial market who have better knowledge about financial market terms and techniques. If someone is a newbie in share market he can refer best trading tips like intraday tips, stock tips, commodity tips for better results.
Some points you need to know –
1.Knowledge is important – Better knowledge about the stock market is very much essential in day trading not only basic procedure but taking daily updates of the stock market, news, any event related to the stock market is important. All I can say that anything affecting a stock price is important for a trader. How much you earn is depends on how much to learn from trading.
2.Start with small – As a beginner, you should start with a small amount. It is advisable to focus on one of two stocks in a single day, you should first try to learn the basics of trading then you can find better opportunity to gain profit through day trading.
3.Time is important – Trader start placing an order as soon as market open in the morning because experienced trader easily recognises the best time to trade in the market, but as a beginner, you should take 10 to 15 minutes to think of the situations and to take the decision regarding stocks. Take your time and then take a step as a decision taken in hurry could lead you to the loss.
Benefits of day trading
1. No overnight risk – The greatest benefit of day trading is you don’t have to hold your position overnight. You have to close your position before the end of the market so overnight changes and crises happen in the global market can not affect your income on next day.
2.High return – If you have implemented strong profitable trading strategies in the market, then you can gain a high return from the market. If you want to make a high profit then you have to keep yourself updated as the market fluctuates every second.
3.Independence – Day traders are professional independent traders who trade in their own way. They are the business man living on their own hope, make their own strategies and choose their own way to become successful in trading.
4.Less brokerage – In day trading, the commission of brokers are very less as compare to the other trading. In day trading you can make more amount by paying less commission which is usually not possible in long term trading.
5.Great learning opportunities – Day trading provides you more opportunity to learn, determine the market situations and applying different techniques to earn a profit in the market. You can also ascertain which strategies work best for you. Also, many leading advisors help investor by providing best trading tips like stock futures tips, intraday tips and much more to boost the profit of traders.