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How to do Day Trading? ( Time & Money Management ):

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Do you know “How to do Day Trading?

 If no, then don’t worry as we are going to discuss “How to do Day Trading” in brief from this blog.

Let’s start with the scratch by understanding with the definition of “Day Trading”

What is Day Trading?

Day trading is all about squaring off all your trading positions the same day.

You can buy in the morning and can sell the shares before at the same end of the day for day trading.

In fact, day trading is one platform where you can actually buy or sell shares without having delivery in your Demat account.

Day trades are squared off the same day, so they do not, in any way impact your Demat account.

As the intraday trader does not get ownership for the shares he owes as because the positions are squared off by the day end.

You can define the order as a Margin for Day Square-off (MIS) order and you can get intraday trading limits up to 5-10 times the transaction value, based on the volatility of the stock.

That sounds great, but then why 70% of the day traders end up losing money? The reason is that they do not follow the 5 simple steps that can actually help them make money in intraday trading.

  • Measure your risk – Put risk management first
  • The trend is the friend – Always be on the side of momentum
  • Technical Charts – Get to grips with supports, resistances, and break-outs
  • Play both ways – Not just the long side but short side too
  • Maintain a trading diary – The more you record, the less you forget

This type of trading is suitable for that trader who can take the risk and can follow the market closely.

The trader who can closely follow the market and the one who can perfectly time the trades can also turn out to be profitable in intraday trading.

These all perfections needs more efforts like to study the market, read, and learn and to imply practically on the stock market.

Now we will head to some main points for indicators of day trading,

  1. The best day trading tip that can be given to any day trader is to follow the trend. 
  2. A day trader ought to develop a decent understanding of the market and its trends.
  3. For this purpose, intraday trading indicators once in addition to day ways supply money-making returns.
  4. There are multiple intraday trading indicators, the use of every indicator is totally different. 
  5. Whereas some indicators indicate the volatility, different indicators show momentum and trend of the market.
  6. All the indications supply deep insights into the market trend, its direction, momentum, quality of the stocks through volume assessment, the potential of profit. 

From all these indicators, it gives a whole clarity of the market and facilitates the traders in creating sophisticated choices.

Now let us see some pointers for,

Day Trading Charts

When doing intraday trading, it’s vital to possess a reference material that results in economical selections. 

This can be wherever the day charts play a crucial role.

Day charts are the foremost popular and usually employed by the trading community.

The charts depict the price-movement of stocks on a specific day.

The day charts are used for analyzing short-run, medium-term, and long term periods.

The 5 kinds of day charts particularly named hourly charts, 2-minute charts, 5-minute charts, 15-minute charts, and tick-trade charts give a holistic read of the performance of a specific stock. 

You’ll be able to efficiently set up your future trading methods by concerning these charts.

For Free Chart: https://in.tradingview.com/chart/

And, Learn: How to Use Trading View Chart

Day Trading Time Management

While day trading may be extremely profitable, it has some risks related to it.

Hence, it’s imperative to stay to a correct strategy and execute it. 

Time quantity analysis is important in intraday trading, it offers deep insights concerning the past, present, and probable way forward for the market. 

In spite of whether or not the trader is trading for short or long-run, being skilled in time analysis is the key to success intraday.

For time analysis, the intraday trading charts are valuable, the charts depict value movement at regular intervals.

This helps traders to require an appeal to the position and arrange future actions.

Conclusion

This article on “How to do Day Trading” tells about some important tips, measures and indicators that can be used in intraday.

I hope that now you will able to understand the importance of Time management and Trading Charts for the Intraday.

We want to make a conclusion that you day trading is not rocket science but it requires lots of effort, patience, learning, and applying it in the practical market.

If you find it useful for yourself and want to share with anyone you can share the information with a lot of people in your connection and make them understand to do safe intraday trading.

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Trading Fuel believes to make all the traders and investors be aware of all the updates with the stock market terminology and on-going activities. With the representation of all the information in the form of blogs and articles. Hope that you have a habit to read and learn new things on an on-going basis as with this only you can make money in any of the business or even in trading.  Happy Learning and Trading!

Author

Prashant Raut is a successful professional stock market trader. He is an expert in understanding and analyzing technical charts. With his 8 years of experience and expertise, he delivers webinars on stock market concepts. He also bags the ‘Golden Book of World Record’ for having the highest number of people attending his webinar on share trading.