Day Trading or Day trading refers to the practice of buying
and selling financial instruments within the same trading
day such that all positions will usually (not necessarily
always) be closed before the market close of the trading
day. This is the opposite of After-hours trading. Traders
that participate in day trading are called day traders.
trading used to be the preserve of financial firms and professional
investors and speculators. Many day traders are bank or
investment firm employees working as specialists in equity
investment and fund management. However, day trading has
become increasingly popular among casual traders due to
advances in technology, changes in legislation, and the
popularity of the Internet.
offer day-traded financial instruments such as stocks, stock
options, currencies, and a host of futures contracts such
as equity index futures, interest rate futures etc
tips for Intra Day Traders :
If index is in positive from yesterday and the share
you are holding is in minus then it should be cut and
if intraday trend of index is in buy then one should
buy a stock in which is in plus.
If index is in minus then one should look to short stocks
which are minus and not stocks which are in plus.
It is not necessary that a stock which is weak today
during intraday trading might be weak tomorrow also,
simultaneously if a stock is strong today might not
be strong tomorrow.
If US Markets have gone up overnight, the markets here
in all probability will open strong, so one should be
quite careful when buying stocks as the general psychology
of public is to buy when good news is there.
Being a contrarians is very important while trading
Stop loss is a must while trading intraday.
Always trade in very liquid stocks i.e. which have very
high volume because as entry and exit can be very fast
in such stocks.
Do paper trading before you actually start trading so
that when you start making paper profits, then shift
to actual trading.
Keep your volume constant e.g.: if you trade in five
lots of nifty future then trade in five lots only. This
position can be increased only when you are satisfied
with your trading for a month. It should not be that
one day you buy five lots and next day you trade in
ten lots and third day you get a loss and stop trading
for two days.
Fear and Greed are at maximum levels while trading intraday
so always have less position when you are new to intraday
trading as otherwise you will be mostly under tension.