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Market Day Trading Success Tips

By Alfred Fernandes | February 18, 2009

What is Day Trading?

Refers to opening and closing the stock position, or positions, on the same day or within a single trading day.


Who Is A Day Trader?

A Day Trader is a trader who buys and sells financial instruments (eg stocks, options, futures, derivatives, currencies) on the same trading day or within a single trading day. A very active stock trader who buys and sells the same security very quickly, executes a large number of trades each day, and generally closes all positions at the end of each trading day.

How To Day Trade?

To get started as a day trader, it is advisable that you be familiar with the stock market in general, preferably by working closely with a broker or stocks expert. Begin by making “on paper only” trades, and tracking these proxy trades for performance. Know the ins and outs of the market in general before striking out on your own. Also know which financial instrument (stocks, commodities, futures, currency, etc.) that you plan to trade, some of which are best dealt with by the day trader.

The Day Trader due to the involved risk has to be quick in executing his trades at proper market levels. He has to plan a wise strategy to beat the market and has to be alert to grab the right opportunities at the right time. He must be thorough in money management especially in calculating his risk-to-reward ratio. Must analyze the markets he is day trading and be with the market trend. Using a Reliable Day Trading Software is a must for consistent profitability. So, have you researched which program best suits your needs and trading level?

Whatever type of trading you do and your skill level, having the right day trading software is vital to your online stock trading knowledge and abilities. Some software will teach you the ins and outs of trading, or the various types of trading while others will teach you how to track a particular stock and how to watch for trends. Stock trading has become one of the Internet’s largest growing activities, not only at the professional level, but as an investment-based home business as well.

What is Market Day Trading?

Market Day Trading is day trading on a Market Index. Buying and Selling the Market Indices such as NASDAQ Composite, S&P 500, Russell 1000, NYSE Composite. In my opinion Market Day Trading can also be applied as the day trades in stocks or futures analyzing the Market Trend as a whole in the direction of the prevailing Market Trend.

How to Market Day Trade?

Analyze and determine the ongoing Market Trend and day trade the Market Index or the stocks or futures in the direction of the market trend. If the Market Trend is up execute only long trades and if down only short trades. Go long only on dips after correction in the uptrend and go short only on up moves in the downtrend. This will ensure better Market Day Trading success rate.

Do not speculate or act on tips in Market Day Trading which can be disastrous. Your mind or emotions can compel you to take wrong stock investment decisions. A Good Day Trading Mechanical System or Software will go a long way in enriching your Market Day Trading experience.

Topics: Day Trading, Day Trading Software, Stocks Investment | No Comments »

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