Day Trading Tips From the Pros - How to Make Money in the Markets By Day Trading

One of the most popular and exhilarating ways to earn cash these days is day trading. There are individuals who do it for a full time occupation while others treat it as a means to earn some extra money. With its great earnings potential and the excitement it provides, it's no wonder more and more people are jumping into day trading.

However, day trading isn't an automatic path to quick and easy riches. You'll need to understand how to go about it properly. Day trading involves some risks, but understanding the best way to manage those risks and make knowledgeable decisions will provide you with the strongest possible chance at increasing your earnings, while minimizing any losses.

As we know, buying shares low and selling when the price is high is how you make money with day trading. So when does someone know it's time to jump into in a certain stock?

To earn money with day trading, employ these important angles to maximize your profit.

Be prepared ahead of time. You should be alert and ready prior to making your first trade. You don't have to take hours doing this, but visit a couple of key news sites you read and it's wise to monitor a couple of stocks closely. Having a good overview of the stock market, including a few well known shares, will prepare you to make good financial decisions.

Don't spend time on shares with hardly any movement. Change is the name of the game for day trading. When day trading you are buying and selling stocks each day which means you must be invested in stocks that have daily price shifts in price every day.

Increase your number skills. Being able to understand financial data points and reports is essential to being a prosperous trader. You don't need to be a mathematical genious, but you do need to realize what the financial numbers mean in order to make quick, sound assessments.

Stay poised and steady. You should keep your emotions cool to not let them to alter your assessments. You need to keep a stable mind at all points.

You may not become rich in a day, but using these hints will get you on your way to making some cash with day trading. With the best tools and resources, you can tap into the incredible profit potential that day trading makes available to you.

Day Trading - Tips and Tricks For Day Trading

Looking at the unpredictable behavior of the stock market people are indulging in day trading by the day. This way they do not plan to keep a stock for months or years, rather quit the moment they find 2-5% profits. This also helps them to make a sort of daily income from day trading. There are also some smart investors who enter the market as soon as it dips 10-15% and quit the moment it recovers back to same point or close to it.

Now can everyone do it with that ease. Ask yourself a question had this been so easy then most of us if not everyone would have been in stock trading? You simply cannot go in there and start making big profits from it. You need to have some basic knowledge about company profiles, their balance sheets and their stock trading range. Having this knowledge will help you to make a decision when the stock hits a low and is a good buy. Some of this knowledge is important even if you are planning to keep stocks for a longer period of time, as the better the stock the better returns will it give over a period as compared to the other which are not performing that good.

To make decent income in day trading you need to follow certain principles:

1. Stay updated with the market news and spend some time on global news also. Most markets are driven by global factors. Although there are some local triggers that help the local market to behave differently. You do not have to spend hours to get all the news. Well headlines say it all in 90% of the cases. Make a list of 2/3 financial sites that will help with daily news. It is always better to subscribe to their news feed if available, so that it is delivered to your mailbox. This will help you take some actions if some trigger is about to change market situation.
   
   
2. Make a list of some select stocks and keep a check on their movement. Do not make a huge list which you will not be able to manage. Say about 10-15 stocks should be good enough. Do select about 4/5 market mover stocks in your list. Market mover stocks are those which can take market in any direction on their day, these are also known as major stocks. Make a note of these companies and go through their profit loss for past 3/4 years. Also keep a check on how their profits/loss are increasing/decreasing. The purpose of this exercise is that if you are stuck with a stock at higher price then keeping that stock some more time will not lead to loss.
   
   
3. Stay away from stocks that do not move. Any stock that shows a movement of less than 1% in a day is not good for day trading. Well some of these stocks may be better if you want to keep them for a longer period of time but definitely not for day trading. Any stock that moves at least 3-5% in any direction is good for day trading. Well you still have to keep an eye on whether it is on its low in the day or has already hit a high.
   
   
4. It is very important in day trading that you keep a stop loss and be prepared to book loss when a stock starts to move in a direction other than that you predicted. You do not have to b emotional when you make any decision. Base your decisions on quantitative analysis rather than your instinct. The bottom line is do not try to relate stock market with gambling. In gambling you go with instinct, but that is not the case with stock market.
   
   
5. Most important, do not try to evade profits from previous day by making moves in a hush hush manner. Start every day with a clean slate, move cautiously and plan your entry and exit carefully.

It may not be possible to get wealthy with day trading in a short time, but if you make good use of your time, apply proper strategies, make good use of tools and resources available you can definitely unleash the potential that day trading has to make a fortune.

Stock Market Rally - Be Cautious When Entering

Sudarshan : Momentum in markets is very strong. According to him, at this point if somebody enters the market the chances of losses are stronger than making money. Therefore, he is of the view that this is not the right time to buy. The current rally could well continue but the risk reward ratio is now completely skewed against the trader, he added.

It was a spectacular close to the March series as markets closed a tad above psychological 10,000 level on the Sensex. Sectors like capital goods and metals powered away. A bit of profit booking was encountered towards the end and Akruti City was one stock that got pounded in trade. The Nifty closed at 3,082 almost 100 points, while the Sensex shut shop at 10,003 up 335 points - this is the first time the Sensex has closed above the 10,000 mark since January 6

Stock Markets On The Run

Short Market Update:

BSE went above 20K
NSE went above 6K

Both NSE and BSE are looking pretty steady

Markets Slip in Red back After Opening On A Very Strong Note

The markets slipped back into red on the back of profit booking witnessed across all the sectors. Stocks that have slipped in red include oil & gas, pharma, FMCG and realty index. Consumer durable and metal index was still holding up in green. Smallcap index was still strong, however midcap has pared most of its gains.

Stock Markets opened very high in the morning at 300+ for BSE and 100+ for NSE.

Market breadth was still in positive but the gap has narrowed down from the early trade level. On NSE over 800 stocks were up and nearly 400 stocks were on the downside.

Second Day In Succession Stock Markets Dip Further Down

Stock markets opened on weak note toady and proceeded to trade weak for most part of the the day amid sharp volatility and ended with deep cut. Metal, banking, power, cap goods and realty stocks traded under tremedous pressure for most part of the day, however pharma, durables and FMCG stocks were better than yesterdays situation.

Market remained negative all day long. It was disappointing day for the midcap and smallcap counters which has been outperforming the frontliners for some time. Despite the fct of dipping there was substansial number of stock trading going on throughtout the day.

Second Day In Succession Stock Markets Dip Further Down where BSE was down by over 180 points and NSE was down by over 34 points for the day

Rising inflation Not Good For European Stock Markets

Martin at CNBC in Europe says that unless the money markets get unstuck from some of the central bank auctions, it will be difficult situation going into January, with slowing economic growth coupled with rising inflation painting a very gloomy economic picture and putting downward pressure on European equity prices.

A fair point that can be made from here will be to stay away from trding in you are looking short term gains.