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Day Trading-An Introduction




Trading means Buying or selling of goods for Profit.In Stock Market day trading have the same sense means Buying or selling of shares and book the profit/loss on same trading day.Day traders use high amounts of leverage and short-term trading strategies to capitalize on small price movements in highly liquid stocks,commodities or currencies Is daytrading gambling ? or Luck is needed to be sucess in day trading?.Even though little luck can add fortune in day trading sucess in day trading is not fully luck oriented.Day trading also is not a gambling process but many are doing trading like gambling process. Market is actually the action of several participant and day to day movement is ruled by demand and supply So a sucessfull trader should be able to catch market sentiment and a good judgement of demand of supply and also he was able to revert his decision if his decision was proved to be wrong.In share market lot of factor are affecting the movement of share, News,Sudden demand or supply due to change in fundamental,Anticipation of better or worst,Global factor etc So a trader have to keenly watch the movement of shares and news he had to be updated every second and to take decison very quickly. On Stock market there are only three probability either share move up move down or remain flat but 99 % case shares either move up or dowwn even though the chance is 50:50 90 % of trader are losing money in market.. Majority of traders are doing trading like gambling and even do not take care of watching the trend and majority come to trading hall for time pass and majority are unaware of technical analysis a must tool for day trader.Some trader have 8 suceesful trades out of 10 Trades but losse more than profit in 2 trade by not placing the stop loss.Another mistake is over leveraging and trading against the trend and many do not have any trade plan just come to trading hall do whatever other's in the market is saying..To be sucessfull in day trading trader should have good practical and analystical mind. Psychology have an important role in day trading because in trading many factor will have an impact on traders decision like fellow trader,lack of concentration,even screen color to have an impact on day trader. So a good trader should have to shelve all these problems and he should follow a trade plan and should follow the basic principle of trading He have to take the trading very serous and should have to do little home work in analysing the past movement of shares by observing the technical charts and find support and resistance and after making the decision concentarte on the movement of share on charts and news and do not give ear to fellow trader and trade only the shares you know.Good traders do only few trades they wont overtrade.In trading technical analysis is more important fundamental analysis So trader should have to learn technical analysis and derivative techniques.Follow the Day trading principle given below.

Intraday trading


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