Day Trading Tips for Beginners: Day Trading in India is gaining immense popularity. Moreover, it gives the opportunity to earn consistent money on daily basis. Day trading definition : involves buying and selling of securities within a single day. Day trading has its own advantages and disadvantages. Besides that, with proper knowledge, it can fetch high returns.
Day Trading Tips for Beginners
Beginners can easily fall into the trap of quick money in day trading. However, with little knowledge and expert help, they can sail through. Therefore, we share the following day trading tips for beginners. Also, these day trading secrets will help the trader to make good returns in the stock markets.
#1 Select Liquid Stocks
How to select stocks?: One of the important day trading strategies is selecting liquid stocks. Moreover, the stocks that are liquid are easy to buy and sell. The volumes in such shares are high. In addition, they have bigger price range which is good for day trading for beginners. Stock with low volume often results in no buyers and sellers. This leaves the trader with no option but to hold the stock. In conclusion, the trader should trade in liquid stock only.
#2 Determine Entry and Exit Points | Must follow Strategies
Another day trading strategies is determining the entry and exit points. It is important for the day trading of stocks. Selecting the right trading price to enter and exit the stock results in higher returns. In addition, this makes the day trader take right positions in stocks at the right price. In brief, the day trader should know the purchase price and target price. The traders should avoid the greed. Moreover, he should exit when the stock hits the target price.
#3 Timely Book Profits
The biggest day trading tip for beginners is to timely book the profits. Therefore, when the stocks hit the target price, it is always wiser to book the profits. To put in another way, the day trader enters a stock with some target price. When the stocks hit the target price, do not wait. Rather than waiting for the stock to go further up, book the profit. Nevertheless, if trader feels the stock price can rise further, he can trail the stop loss.
#4 Follow the Markets
The most important day trading tip for beginners is to never take positions against the market trend. Taking a position against the market trend can result in a loss. For instance, if the markets are in bull phase, the day trader should take position accordingly. In brief, the trader can be successful in the market only if he follows the market trend. Working against the market trends can lead to triggering of stop losses. The outcome is trader incurring losses in day position.
#5 Put Stop Loss | Important Day Trading Tip for Beginners
The biggest day trading strategies is to put stop loss. Stop loss is the price at which the transaction reverses.The reversal happens when the stock reaches stop loss price. Therefore, before purchasing the stock,determine the stop loss. In addition, with a stop loss in place, the loss will be minimal. Stop loss protects the trader in limiting his loss beyond a certain limit.
#6 Research the Stocks
Researching the stock is one of the best day trading tips for beginners. Trading Fuel helps the investor to research the stock. Moreover, we help the traders to pick the right stocks. In addition, we provide the knowledge to traders. It helps them to understand stocks on the basis of charts and fundamentals. Besides that, we ensure successful day trades. Furthermore, taking day position in stocks on research basis has more chances of achieving the targets.
#7 Follow Global Market | Must Remember
Another secret for day trading is following the global markets. This is important because many international developments take place each day. Therefore, it is essential to track them. Moreover, the global markets have a direct effect on the Indian stock markets. Ignoring any sign or outcome of the global markets can prove to be fatal. In conclusion, the trader should take day trading position only after understanding the uncertainties of the global markets.
#8 Avoid Being an Investor
One of the best day trading tips for beginners is to avoid being an investor. The traders enter the market to square off the position on the same day. Moreover, taking forward the position to the next day is not the right strategy. However, traders do the mistake of taking their investment to next day. This especially happens when stocks do not reach the targets in day trading. Thus, from being a trader he becomes an investor. To sum up, a trader should take the position with a stop loss and exit on the same day itself.
#9 Don’t Over trade
Not over trading is another secret for day trading in India. To be successful in the market, the traders should select only a few stocks. The trader should take a position in those stocks only. To put in another way, not over trading is a good market practice. In fact, high returns and more profits are possible only when the trader takes a limited position in selected stocks.
Trading Fuel
Trading Fuel is one stop knowledge center for people investing in stock markets. We provide day trading strategies to the traders. By subscribing to our website and blogs, the day trading for beginners become simpler. With the help of our blogs, the traders can understand reading the charts of stocks and fundamentals of the company. The day trader can learn technical analysis of the stocks through our blogs. We provide latest news and information about the companies to the traders. Our experts are always available online in case you have a query. Just click on the subscribe button and avail our valuable services.
