|
|
5-Day Trading Strategies for Beginners
|
|
Posted On :
Jul-29-2010
| seen (901) times |
Article Word Count :
478
|
|
The word ‘day trading’ indicates the action of selling and buying of stock in the same day.
|
|
Day trading is very difficult to master and most of the people have failed in their attempt. If you are a newbie in the field of day trading, certain day trading strategies would be helpful for you.
With the help of these strategies, you can increase your chances of earning profits. When you are trading big, it is important that you keep your strategy simple. Maintaining a tight stop is necessary when you are day trading stocks. This will be a good point for you to start.
· When investing you should keep in mind that objective for profit should be 3 times more than the amount you are ready to invest.
· You should not allow 1% more move from the entry point, which will be considered against you. If you are beyond the trend line then you are in it and out of it when below it. If the stocks reach the buy point then you can move back into the trade. If your stocks move past the technical trigger price then the actual trade plan gets cancelled out and a new plan has to be made.
· If the futures make a transitional lower high intraday, you should move out from half of your position. This indicates a deteriorating market and this will make it more difficult for continuous working of open positions.
· If the stocks hits a new high or low for the day and you are short then an important day trading strategy would be to move out from that position immediately. Initial moves should govern a day trade hence there should not be any reason for expanding stocks to have room for a stock, which is not moving in the right direction If your day trading stocks are breaking and reaching a low you should immediately make an exit, because you would be able to re-enter again if things are triggered.
· The following day trading strategy shall benefit you greatly, because it informs you on how to make profit. You should take your profit at a time when the momentum is fading and the buyers are decreasing in number. For this, you would need to carefully note the intraday chart and for the decreasing momentum, a look at the time and sales window is necessary.
Since day traders in the first few months suffer, major financial losses, these day trading strategies can be extremely beneficial for a newcomer. Very few people would be aware of the fact that it is stressful and expensive. Some may get deterred by these warnings but not everyone. Once you are familiar with the basic rules, only then you can think of incorporating moving in and out of a particular position and using additional filters and trailing stops in which you are comfortable.
|
|
|
|
Article Source :
http://www.articleseen.com/Article_5-Day Trading Strategies for Beginners_27433.aspx
|
|
Author Resource :
day trading stocks And Tips, which are priced in between $1-$5 are considered to be speculative and are generally known as day trading options. If you are an expert investor, you should look into day trading strategies to find the next big company.
|
|
Keywords :
day trading stocks, day trading strategy, day trading strategies, day trading options, day trading tips, day trading techniqu,
Category :
Finance
:
Stock Market
|
|
|
|
|
|
