How can you Trade Strategically in Market?

When it comes to ‘day trading’, Day trading is speculation in securities, specifically buying and selling financial instruments within the same trading day. Strictly, day trading is trading only within a day, such that all positions are closed before the market closes for the trading day. Many traders may not be so strict or may have day trading as one component of an overall strategy. Traders who participate in day trading are called day traders.

Here are some common day trading strategies which will be beneficial in this volatile market:

HAVE PROPER ENTRY AND EXIT

Liquidity and volatility are the major aspect, which the day trader looks for, whereas liquidity helps to get enter and exit a particular stock at a good price. On the other hand, volatility is used to determine the expected price on daily basis. Also, increased volatility tends to high profit or loss. After purchasing the stocks which you require, you need to determine the possible entry points. Therefore, here are some tools which you must implement.

INTRADAY CANDLESTICK CHART:

Intraday candles are the best Stock Picks which will equip you a rough analysis about pricing action.

REAL TIME NEWS SERVICE:

Get Real Time News, as this will provide you update information about stock movement.

DETERMINING A STOP LOSS

During marginal trading, the chances of getting vulnerable are more as compared to regular traders. Therefore, implementing stop loss strategy is important during intraday trading. The two stop loss strategies to implement are as follows:

• A physical stop-loss order that is positioned at particular pricing level should match your risk tolerance.
  
• The mental stop-loss is positioned where your entry criteria get violated, which means that if the trade gets against your expectation, you have to exit your position immediately.
  
  
  
  
  

EVALUATING THE PERFORMANCE
Many beginners step into the intraday trading to generate maximum returns on daily basis but in fact, traders lose their hardly earned capital. However, by implementing accurate stock trading signal with well defined strategy, it’s possible to make the most of intraday trading.