Healthy Day Trading Strategies
Day trading is one of the strategies to make money in online stock trades. The first thing you'll need to start day trading is a thorough trading plan and strategy Once these are in place, you will need to open an account and deposit your funds - it is important to have an adequate amount of funds to cover the margin requirements of any positions you open.
The markets may open in green and you might take good position in some stocks, suddenly some bad news may come regarding the company in which you have taken position or the finance minister may announce some news which might affect the stock market or the other markets like European markets may open in red or weak due to the situations there which might lead to the downfall of the Indian markets suddenly, which will result in heavy loss as we might have taken a huge exposure in stocks.
In a research paper published in 2014 titled Do Day Traders Rationally Learn About Their Ability?”, professors from the University of California studied 3.7 billion trades from the Taiwan Stock Exchange between 1992-2006 and found that only 9.81% of day trading volume was generated by predictably profitable traders and that these predictably profitable traders constitute less than 3% of all day traders on an average day.
No, typically, they are just ordinary blokes and ladies but the only difference between them and many other struggling day traders is the fact that for these successful day trading day traders, they have learnt to manage their trading risk, they have a system and follow and stick to the plan and that's why they are successful.
It means, before you press the buy or the sell button you must know when you want to get in a trade and this is dependent on your trading system's signal and then at what price you will exit your trade at a profit or using trailing stop etc and then if your trade does not go as expected, when to exit (escape) with a little loss.
In the course you will learn different day trading strategies but based on your basic technical analysis knowledge (that you have learned in 'Technical Analysis Masterclass: Trading with Technical Analysis') Find out your best entry point in the chart.
It's important to understand the U.S. Securities and Exchange Commission (SEC) rules for day traders You must have at least $25,000 in your trading account at all times and can only trade in margin accounts if you make four or more day trades within five market days.