| When you think of day trading stocks do you | | | | Before you jump in headfirst, get the day trading |
| imagine someone making a quick buck or do you see | | | | terminology right. Learn how to get exact prices for |
| somebody making one bad trade after another? | | | | your trades and any factors that influence the |
| Which one is the real picture? Neither actually. Being a | | | | smallest change in prices. Be aware of the market |
| day trader long-term is very stressful and we | | | | trends and what the current economic climate is. The |
| wouldn't recommend it to anyone. But, day trading | | | | market trends i.e. upwards, downwards or sideways |
| infrequently keeping your long-term objectives in | | | | are all the more important when your trading window |
| mind can be exciting and profitable at the same time. | | | | is much smaller compared to a buy and hold investor |
| Let's see how we can go about doing that. | | | | 3- More tools doesn't make your smarter |
| Usually investing after you have been doing it for a | | | | There are several tools that are useful such as |
| while can be boring and predictable. Value investors | | | | real-time streaming tickers or stock charts. But, these |
| buy stocks with margin of safety or when they are | | | | are only as good as your ability to use this |
| priced cheaper than their real value due to a variety | | | | knowledge. Don't get bogged down in the details and |
| of reasons. Growth investors pick stocks that are | | | | try not to depend on the tools so much that you |
| exploding in value because the underlying company is | | | | refuse to make decisions due to unavailability of |
| shattering profit records quarter after quarter. Both | | | | some tool or data. |
| these or different combinations are the usual styles | | | | 4- Check your emotions at the door |
| that most investors adopt. If you need to spice | | | | When it comes to investing, emotions are your |
| things up in your portfolio you should try day trading | | | | enemy. The less emotional your trades are the |
| targeting stocks that suit your style i.e. growth or | | | | better your odds are of making the right decision. |
| value using some additional pointers. | | | | When it comes to day trading emotions can |
| 1- Don't bet the farm | | | | compound your losses when you put good money |
| This one is obvious but its so important it bears | | | | after bad or start making you believe you are better |
| repetition. Don't ever devote more than 5% of your | | | | than you really are after a few good trades. While its |
| entire portfolio to day trading. This is risky business | | | | impossible to be completely unemotional while |
| and even though you will do everything within you | | | | investing being more aware of your emotions and |
| control to tilt the odds in favor don't run before you | | | | minimizing the influence they have on your investing |
| can walk. | | | | will be extremely beneficial in the long run. |
| 2- Learn or lose | | | | |