What is day trading and its advantages
today called trading buy and sell shares on a daily basis the trading day and is also called intra-day trading. Whatever you buy today you have to sell it today or whatever you sell today you have to buy it today and more importantly during market hours are 9:55 to 15:30 (Indian time).
trading advantages on -
a) margin - in day trading you get margin on the amount of your balance means you get more leverages (amount) to the amount of the available balance you have to do day trading this is called trading concept Margin . Margin Trading is only possible in day trading and not in delivery trading. How much additional amount (the margin) you are going to get this depends entirely on the broker or brokers your order online. And it offers some Broker 3.4, 5, and 6 times extra margin. If you do this margin then you have to square off your open positions on the same day (I mean if you bought shares then you have to sell, and if you sold the shares then you have to buy) by the market time (ie 03:30) finishes.b) important second advantage is that you have to pay is less brokerage (committees) in the trading day (the day) compared to delivery trading. This mediation depends again from a brokerage firm's (or your online trading system). C) on the day of trading you can buy and sell, and this is called a short sale that you are unable to do in dealings delivery. You can sell the stock when the price goes down and then buy when prices fall more.
denial of the trading day
a) also benefited you to get the amount of more extra trade (this is the margin trading system) and get more profits extra it is also equally true that you are also taking more risk of loss.b) at no cost to you that off the open position before 15:30 box (especially if you do margin trading system) at the time that the price may not be in your favor.
basic requirements for the trading day
trader said a successful day or trading market share requires a couple of majors following requirements -
1) computer with internet - if you need to do you yourself, then you need to have a PC or another computer, you can do it in the Internet cafe as well. A computer with a good speed Internet connection. Must connect to the Internet do not be slow or should not face any other problem, especially in the trading day.
2) online account (Demat account) - You need to open a stock trading account online with any of the banks available or brokers.Points online to remember while opening accounta the Internet) to provide multiple inquiries and try to get lower brokerage commercial and demat account.b) also discusses all the margin they provide for the trading day. C) a discussion about the transfer of funds. It must be reliable and easy to transfer funds. Transfer money from your bank account to an account and vice versa. Some accounts may integrate the online share savings account, which makes it easy for you to transfer money from your savings account for account.d trading) is very important about the services they provide, and calls research, during the day or daily tips. E) also inquire about their services fees and any other hidden charges, if any. F) and also see how reliable and easy is to contact them in case if any emergency. Emergency closure or compatible transactions in the event of any technical or other problems
how to stock selection (stock) trading day
in a day trading, and traders are often willing to do the buying and selling on small profits but they seem to share overbought or sales levels. Taking into account these important points following basic things you should look for in shares, while their choice for a day trading.- prices Volatility- size (the amount of) what exactly do these terms mean and how to use them while trading day.
volatility - price volatility means the movement (up and down) of the share price should be more (or top) during the day. In other words, it must be a fluctuation in stock prices at a high rate so that it will be easy for you to buy and sell at different prices. Suppose if the stock moves up and down in a very narrow range and then on what price you would buy and sell? So it is always better if you choose stocks that have a high volatility in the price of movement.Do you want to know how to tell the shares volatility then please click here?
size (amount) - Volume means trading volumes. Must be a stock that you choose for day trading large amounts (or high volume traded) .Why this is required? High volume indicates that there is more liquidity. Liquidity means that many of the transactions occurred on this share and more people are interested to trade in this share. This will ease your business because you will get more exposure to the price of buying and selling at any time. Because of the large amounts There will also be a high price fluctuations.
points to remember for tradingFollowing today is a very important point to be always remember the day traders.Entry and exit borders point stop loss, profit targets, you have the desired file / reward risk, the amount of capital to be committed to the transaction, how much time you need for a share if you are against your favor.
why it is required for the exercise of the trading day before the actual start of the trading day?
is important to do practice or paper trading before the actual trading begins. Here are several reasons: 1) It is very important you will come to know how to put the purchase / sell orders, and will become familiar and perfect about using your trading system. 2) You will gain confidence in yourself. 3) the fear of trading will fade. It is very important to keep the fear away while doing the trading day. 4) It will become active to enter and exit the trade. It's vital importance that you should be very quick to enter and exit the trade (ie open positions).
What are the mistakes common trading day and how to avoid them to make a profit generous
1) Do not jump in trend early - wait and get a confirmation sheet of a change of direction, and then plan and do your deals (buy / sell). Do not jump in or do deals early before any confirmation of the change of trade this may lead to your capital damage (bank balance).
2) Do not wait in trade for a long time - to assume that you've done one transaction (buy or sell), but the stock does not move either up or down, it's just stable or moving with very low price difference, then you should get out of this trade and the search for the arrow in the other. You may be faced with situations of this kind, when indices (NSE or BSE) and do not move (or moving with narrow range). At that time either wait or get out of the trade, do not loose patience and fall under loss.
3) Do not change your direction on the volatility of the size - some of the time you enter the trade by seeing the buy and sell quantities. For example, suppose you brought shares by seeing more quantity purchase and sale quantity, expected more buying has pushed the share / stock up but after a few minutes you see just the opposite can see more of the amount of the sale less the amount of purchase or sale and purchase and decreased high amount or the difference of the purchase and sale of the amount compared to what you've seen before. Up to this point is very important, do not panic here and sell your stock, wait and realize the situation correctly and then take action. The number of times this position, but if you are sure that your share is going to move up and then stick to it.
4) Beware of buying companies or any declaration by the government - to assume in the morning, before the market begin, you should read or watch the news from any Indian company bought any foreign company (or part of a foreign company) if you see this is actually the best news / things that an Indian company. But if the amount of the acquisition is much more than expected, this good news will turn to worse news. The shares of the company begin to decline. Therefore, you should not get in the trade and purchase of shares have to wait and see how the market or other people respond to these shares and once you understand then you can trade. So always see where the market is heading towards and then react. The announcement of the government - you should also be very careful to make a decision TARDE your own on the basis of any government announcement.For For example, if the government announced a rise in the interest rate then the good news to buy the bank's shares, and therefore the shares will rise, but if the government announced 2ND a rate hike at the very least a period of time as the first one (to stay within a period of one to two months or three months), then this news will be worse for bank stocks and shares may fall Remember during the trading period. So realize and analyze the news and finally watch market behavior and this fall or do not trade you will get success.
Things to study in the morning before the start of your trading or market share of the trading day or trading during the day?
1) read financial newspapers such as the Unified Business, Economics Times, and whether it can be done memorandum high lights / breaking news with the names of the companies concerned and closely monitoring them for that day.
2) If possible stake hour (arrows) on the TV market such as business uniforms, CNBC, etc. In these TV channels you get every idea / movements of all stock and market prices (BSE, NSE ). And also it becomes easy to catch and keep a close eye on related companies if any breaking news comes out during the day.
3), especially some of the relevant stock market sites such capitalmarket.com, businessstandard.com always displays current news, market affairs and trends in the stock market, breaking news and announce various done by a company or government that may affect the stock market and related companies. In an effort to reach and have everything's OK to like these types of sites before the start of trading and also through out the day, if possible.
4) So in summary before you start you to trade in the stock market you should be well aware of all the current news of the financial market and, if possible, note down breaking news or effective news and company related, and watch on that share and trade accordingly on that day .
important principles to be follow by day tradersNever invest all your money in the same sector and called this method as diversify share. This will protect your money from the bearish trends in any particular sector as you can make money from sector.There other to various sectors such as information technology, pharmacy, banking, steel, gasoline, oil, construction and infrastructure, automotive etc.
avoid errors common trading day absence of a plan for trade, and the lack of control over emotions, and not to accept the reduction of losses, lack of commitment, and excessive trade
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