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Day Trading Stocks – Know Few More Useful Facts
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Posted On :
Sep-14-2010
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Article Word Count :
436
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Most of the new day traders even do not have a solid trading system available with them. Most of them even do not understand that first you develop your trading system and after that you select the stocks as it is all about working with the right stocks to gain maximum benefits in short span of time and without losing anything.
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It is said that in day trading, one fight for the best entry price and the best exit price in each and every trade available for day trading. Therefore, each day trader should make few right judgment calls when competing for the right price. Now, the areas where most of the day traders mess up and often go wrong or misguided is the in picking stocks to trade, lacking concentration and not watching the latest market moving news.
Most of the new day traders even do not have a solid trading system available with them. Most of them even do not understand that first you develop your trading system and after that you select the stocks as it is all about working with the right stocks to gain maximum benefits in short span of time and without losing anything.
When it comes to the selection of right stocks, most of the new day traders have a weak and shaky idea about day trading stocks . Most bad trades are due to beginners who are trying out unfamiliar stocks. If you are accustomed and used to the rhythm and swings of a stock and you have traded that stock with success than you should pick stocks that are similar.
It is also recommended to not try to trade a stock that you discovered in your late night research session. First try to become familiar with that stock for few days and even few weeks. Learn how the stock behaves on daily basis. What is the swing pattern the stock follows each and every day. After you have thoroughly researched the stock for many days and even week, only then think about day trading that stock.
When you select a stock for day trading, make sure that there are no current headlines that affect the stock that you have chosen. How do you know that there is nothing in the news about that stock?
It is also very critical for you to be patient with unfamiliar and new stocks. You should treat all new stocks as your first date. Someone totally new that requires exploration! Most often, the new stock that you find may not be a good stock for day trading. So, initially you should drastically reduce your exposure by trading only 100 shares and not more. Stock picking is the area where most new traders make blunders. Pick your stock wisely in order to avoid wastage of time and money involved.
One should also refer the on line stock trading tools, software and websites before deciding for stock trading.
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Article Source :
http://www.articleseen.com/Article_Day Trading Stocks – Know Few More Useful Facts_32978.aspx
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Author Resource :
Stock Investing/trading - learn how to invest in the on line stock trading and get free investing ebook, day trading stocks tips, stock market strategies, and stock trading articles.
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Keywords :
day trading stocks, Stock Investing, Online Stock Trading,
Category :
Finance
:
Investing
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