Every trader wants to earn money in stock markets. Your dream to gain profits can come true by following basic day trading rules for intraday traders.
These rules are not mandatory in nature but they are highly valuable for intraday or margin trading. They can help you to gain maximum profits with minimum risk.
Day trading is a fast-paced buying & selling of securities in same day during market hours. This share trading strategy can generate money within short period of time. However, your losses can also be steep if you avoid these simple & basic rules of trading.
Generally, day traders are full time traders. They utilize every possible opportunity to enter & exit trades. Intraday traders can either buy first & sell later or sell first & buy later. Here are 10 basic day trading rules for first time traders or beginners:
[You can also watch an exciting video on this post from GetUpWise channel on YouTube.]
(1) Trade Only In Best Day Trading Stocks
It is one of the most critical & basic day trading rules for intraday traders. Every stock is not a fit candidate for day trading. You can generate profits from intraday trading only through best day trading stocks.
Some of the characteristics of best day trading stocks include stocks with high liquidity, stocks with reasonably volatility, sector specific stocks, stocks that matches your trading strategy, stocks with good correlation to overall markets, and many more.
Once you identified best stocks for intraday or margin trading, you can make your positions. Generally, these stocks are from large cap sector rather than small cap or mid-cap sector.
These stocks can provide you multiple opportunities to trade during market hours.
Image Source: Shutterstock