Probably the most lucrative, not to mention extremely risky, ways to enter into the market is through day trading investing. It has drawn many with its potential of huge income. It has helped most people make good fortunes in the money markets. Some people have lost their shirt. So if you are planning to take off for this type of market operation, here is what you should know:
Basically, day trading investing usually means you purchase and sell the stock on a single trading day. E.g. you purchase a stock of a business At 9.30 am and after that sell it on a single day at 11.00 am. Here you need to make a fast move for buying or selling the stocks so that you can book the quick benefits. Those who who get involved in day trading are known as day traders, who earn money from price movement of the stocks.
So as to become a very good day trader, you should have the following characteristics:
* Ability to be neutral, when the markets move down or up very sharply.
* Use a proper entry or exit strategy.
* Ability to make a record of all the trades.
* Give attention to several techniques that allow them great outcomes
* Ability to manage capital the right way
* Remain calm with uncertainty and risk
* Stop blaming the broker for downfalls and being responsible for your decision
* Possess risk capital for trading
Of these characteristics, your skill to keep a record of all your trades is regarded as the essential one. It can be difficult to remember each and every trade. Recording all of them will assure that you can figure out no matter if there are any certain trading patterns causing failure or success evident.
The trade record you made will want to have these information:
* The ticker at the time of entry
* Entry time.
* The time you exited.
* The exit and entry price.
* The actual cause of opting for the trade.
* Quick review of the occurrences in the market during that time.
* The behaviour of the stock.
Look at this information regularly to learn where you succeeded and where you failed.
Another essential attribute that you should really have is the power to be relaxed with risk. The markets tend to be a very unstable in the short run. Whenever you want to exit the trade by the end of the day, quite often that the price has dropped below your buying price. You will need to have the power to undergo this risk. Eliminate your greed and fear to succeed in the game.
Since you have chosen to day trade, you should have access to real time market data. You will need live stock ticker and quotes, live market indices and averages, real time market reports, real time charts, and actual price and news alerts. You must also keep a watch on the business stations to keep yourself updated on the market news
Once you’ve all these ready, you will be ready to start making your money in day trading.