Day Trading Tips and Strategies

Day trading is the practice of buying and selling financial instruments such as stocks, stock options, currencies, futures contracts such as equity index futures, interest rate futures, and commodity futures within the same trading day. In any day trading business, a transaction is closed before the market close of the trading day. People or traders participating in day trading business are called active traders or day traders. Most of the day traders are normally employees of bank or investment firm because they have better knowledge and understanding. Most of them are specialists in equity investment and fund management. With the advancement of technology and internet, day trading has become increasingly popular among common investors.

Making Money as a Day Trader

One can make a lot of money as a day trader, but it's not as simple as other small business, currency trading or work from home jobs. Day trading jobs can be done from home but generally need more time and involvement than other work from home business. Day trading involves risks but if one can take calculated risks, he / she can make a lot of money in a short period of time. A beginner or a newbie to this business may even end up losing money. To be a successful day trader, one needs to follow rule of the game and understand some of the basics.

Basics of Day Trading
Day Trading

Many people or investors consider day trading an easy means of investing and making money in a short period of time and get rich easily because they don't need to wait for long periods of time to see their investments grow. One should always keep in mind that while it can be fun to invest in day trading, it's important not to allocate more than 3-5% of total equity corpus for the purposes of day trading. This is a safe amount to stick with because if it is all lost it won't ruin the investor financially. Many people get carried away and will take as much as 25% off their equity corpus for day trading and finally they end up losing all their money.

Day Trading Tools and Software

Today there is 24 hour access to the stocks via stock market tickers, stock market websites etc. Many people think that with all these technologies available today, they are not going to lose their money. This is wrong. These tools may help in day trading but they don't guarantee success. One should always remember that day trading is always risky. It is extremely important to keep an eagle's eye on the stocks. Use all available tools, but don't mistakenly think that day trading is safe.

Understanding Day Trading

Any individual who really wants to make money as a day trader needs to learn and understand some of the basics before investing. Learn day trading terminology like futures, call option, put option, delta, and stop loss trigger. An understanding of these terms can be very helpful.

Day Trading Rules

There are some important rules associated with day trading. Firstly, always be aware of worldwide economic status and the company or stocks' business practices. One should always try to choose large cap stocks with high trading volumes. This will help to avoid getting stuck with an illiquid stock. A day trader may also have to book losses. This will improve future profits. As a day trader one can always learn with experience and time. A day trader should set standards and try to achieve set targets.

Related Posts:


  1. The tips or strategies you are providing must be influenced by the NSE BSE Tips.

  2. Hi,

    Online Zero Brokerage is One of the Leading Share Brokerage Company in India. Our Company Offer Zero Brokerage Charges for Online Share Market Account in India.

  3. I salute you for doing tremendous job of writing each and every article of this blog with useful and important information.
    Best Stock Tips Provider

  4. This comment has been removed by the author.

  5. Money CapitalHeight is an ISO 9001-2011 Registered Company. We are providing Stock Tips as well as Commodity Tips. We also provide two days free trial in stock cash,stock future,Nifty Future,option,bullion and agri commodity market.
    Commodity Market Tips

  6. While this topic can be really touchy for most individuals, my opinion is the fact that there has to become a middle or widespread ground that we all can locate.
    I do appreciate that youve added relevant and intelligent commentary in this write-up even though. Thank you!

    stock Tips
    commodity tips
    nifty tips

  7. SHRISTOCKTIPS has become a new brand in the share market research with its accurate research. Proven itself always right whether market is bull or bear. Last week all paid clients booked handsome profit in NIFTY, BANKINIFTY & STOCKS. Now for the coming week we expect more correction can come in NIFTY as the IRAQ issue is getting more tense, If it happens more then you will see a sharp fall in all world marketSHARE, STOCK TIPSbecause as we know all world run on crude & most of the crude comes from IRAQ. So be ready for a sharp fall so sell will be the best strategy for next week also. Traders can make a sell position in NIFTY around 7600-7650 with stoploss 7750 for the target of 7300-7200.One can also make a sell call NIFTY 50 stocks as per NIFTY levels. You can also take our two days free trial to check our accuracy. For further updates you can visit our website.

  8. Whats your view on Insecticides India,Nitco & Pricol. I am posting this again as it wasn't answered. Just trying my luck for last time.Wont bother you anymore . Thanks for such a wonderful blog in guiding small investors.

    Agri Commodity Trading Tips

  9. all your tips are best and profitable in market ,EQUITY TIPS are always search people for market recommendation.

  10. There are many advisory firms, like Epic Research, that provide you all the intraday information to trade in stocks.

  11. Zinc prices rose to a 35-month high as inventories dwindled amid speculation that increasing auto sales in China and the U.S. will boost metal use.
    Free Agri Tips

  12. daily basis you have good trading knowledge add another Commodity Tips for the commodity market

  13. Good Blog of Trading Tips , For More Information Visit @ NCDEX Tips and Sure Shot calls

  14. BUY WOCKHARDT LIMITED ABOVE 660 TG- 665/671/678.50 SL- 654 (CMP658.50) stock cash tips provider