Intraday trading, or day trading, is volatile and fast paced. You’re going to need a lot of patience and experience to really master day trading, but these few tips should help you on your way. First off, you have to learn some basic technical analysis. This involves learning how to read stock charts, indicators that are applied to stock charts, and other important data like time & sales, volume traded. Do you want to learn more? Visit read this full intraday trading guide.You need to learn how all of this information interacts to provide a picture of the stock market, and then use this picture to help you make sound trading decisions
You also need to learn a bit of fundamental analysis. The interesting thing about intraday trading is that it requires a good grasp of both fundamental, and technical analysis, whereas normally an investor will lean one way or the other. Fundamental analysis involves the analyzation of a company’s financial well-being and intangible factors, like its competitive edge, and managerial staff. You should use fundamental analysis when deciding what stocks to trade on a particular day. Though day trading is largely technical analysis based, things like the a CEO leaving a company can increase the volatility of a stock, making it a ripe target for day trading.
Another thing you have to do when learning how to trade is record and analyze all of your trades. You should make it a point to quickly jot down the information on your trades while they’re occurring, or right after. This will help you remember the details later. Coming back to fill out the details later ensures that any emotion caused by the trade has dissipated, and you can objectively analyze the trade. You should cover all of your trades, both good and bad. Good and bad doesn’t equate to winning trades and losing trades, respectively. A good trade can cause a loss of money, and a bad trade can cause a gain.
Objective analysis requires you to set aside the monetary aspects of the trade, and focus on the fundamental reasoning for your exits and entires, regardless of the money made or lost. Solidifying the fundamentals of your intraday trading techniques is really the key to long-term prosperity in this game. This is what allows you to make more good trades than bad, while keeping emotion out of the market. Focus on making those good trades, and the money will follow. This is only the tip of the iceberg when it comes to intraday trading tips; you have a lot to learn to be a successful day trader, but if you follow the advice above, you’ll be starting off on the right foot.