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viernes, 10 de junio de 2016

How to make a lifestyle with intraday trading?

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First of all, start with a demo account. Trade in your demo account for 3 months. Try to negotiate five days a week. Establish a daily profit and loss goal for yourself.

Discipline

Check the big news every morning before the market opening. Trade with capital you can afford to lose. Do not put all your buying power in one trade (money management). Stick to your trading plan at all times. Work with a small list of 3-5 stocks that you dominate. And do not overtrade.

Types of trading styles

  • Day Trader: this trading style involves holding positions for a day or less.
  • Swing Trader: it involves holding a position for several days. 
  • Position Trader: this approach involves maintaining the position for several weeks. 
  • Investor: in many cases it involves holding a position for several years.

Set limits on every day trade

A comfortable risk to return ratio for day traders is 1: 1. Do not chase your trdes, there will be more opportunities in the markets. Be sure to use take profits and stop losses to manage risk. 

The best stocks for day traders

Ideal stocks for daytraders must have the following characteristics:
  • High liquidity: Stocks that you can sell or buy in large blocks without affecting price levels. 
  • High Volume: Stocks or securities with trading volumens higher than 5 million shares a day 
  • High Frequency: Shares which are traded very often offer greater trading opportunities throughout the trading day for traders.
  •  High Volatility: The higher the volatility, more fluctuating are the stock prices, however under these conditions intraday traders have more opportunities to profit and loss during the trading day.
 
 
 

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