Day Trading Techniques for Making Profits in Fundamentally Good Stocks
Learn Day Trading by putting the Ideas below into Practice
This day trading technique will work provided you give your time and effort to understand and practice it for a few weeks or months, till you master them.
In this technique you will make profit most of the time if you follow the rules and be patient.
First of all, decide an amount that you want to keep for trading and investing.
Make a list of 10 fundamentally good stocks with potential upside, for day trading.
Watch the news for any news related to these stocks.
Day trade in the stocks when market is in upmove. Pick 1 or 2 stocks for day trading. Dont trade on all of them.
Study the chart and note the resistance and support levels.
Buy the stock in a quantity that you are comfortable to hold so that you can convert them to delivery in case the sock goes down on a particular day.
Buy the stock on opening and sell when it makes a day high or reaches a resistance level or whenever you are making good profit.
If the stock is going down, wait for the right opportunity to buy at a support level. Hold it and when the upmove comes sell it at resistance level or on profit.
If the upmove does not come you can hold it for a day and sell on an up move or convert it to delivery.
You can take delivery instead of booking loss as its a fundamentally good stock and the market is in a upmove so when the stock makes a smart upmove you can sell the stocks and increase your cash for trade.
Since the market is in an upmove, you can liquidate your delivery position on profit so that you can utilize that money in future trades.
You can even hold some positions for long term profit if you have the funds. But always keep 50 % of your trading amount as back up.
When the market is sideways or in down trend you can choose to stay out of the market or use techniques for making profit in down trend.
But in any case you should keep track of the news and study the charts of the stocks you have short listed.
Do your trading when market gives a clear direction of upside with this technique.
If the market is going down, do not buy share even if they are fundamentally good. Wait till the markets settle down and start making upmove again.
Many people break this rule and loose money. When the market is going down or is direction less, do not trade in these stocks.
For making profits in down trent you need to use different techniques. In this article I am only sharing with you how to make money with fundamentally good stocks when market is in upmove.
Your comments and questions are welcome!
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