(4) Make Positions With Limit Orders Instead Of Market Orders
It is one of the most desirable & basic day trading rules for first time traders or beginners. A market order is a default trading option that involves buying & selling of equity immediately at current market price.
However, the current market price or best available price doesn’t necessarily mean profitable. The drawback of market order is basically revealed during highly volatile conditions such as stock market crashes or flash crash.
A high volatility can trigger intraday orders at much far away prices than anticipated. On the other hand, a limit order is an order to execute a stock at a specific price or better.
It helps you to control maximum price of a buy order & a minimum price of a sell order. Limit order are considered best option for making positions during intraday or margin trading.
[Read Also: 11 Great Tips To Trade Stocks During Earnings Season]
(5) Perform Appropriate Research & Analysis
It is one of the most popular & basic day trading rules for intraday traders. Research & analysis is the key to get success in stock markets. You can beat other traders only if you are well-informed about a given script.
Some of the valuable research & analysis needed to trade intraday include support & resistance of a stock, trading range, date of quarterly results, analysts result estimates, events related to concerned company, national & international events & many more.
Day trading can become extremely difficult in absence of research & analysis. However, first-time traders should not forget to learn basic trading procedures needed to place orders online.
You should have sufficient experience of working on trading platform to get familiarize with it.
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