30/04/2022
Statistics of the largest stock exchanges say that the most popular type of trading is day trading - more than 75% of traders perform operations with stocks, the duration of which does not exceed one trading day.
Unlike buying and holding a share, waiting for its price to go up, day traders buy and sell during the day, making a good profit. For example, the stock price can move on average 10-20% a year. Intraday movements can be the same or even higher.
Of course, any investment is risky, and the bigger the profit is, the greater the risk is. I want to give you several rules to follow:
1. Have a list of the shares you'd like to trade. There are too many of them for you to trade each. It's best to choose popular shares that have bigger volumes and high liquidity.
2. Once you settled it, you need to know everything about those companies and keep track of all the news about them. Choose only reliable news sources.
3. As always, plan when you need to get into the trade and when to get out and never break those rules.
4. Find out the hours with the most volatility by watching the market for several days.
5. Take your time. Trading needs attention and concentration. Don't trade if you don't have enough time to it's hard for you to concentrate. As always, your mind needs to be sharp, and you have to be patient.
6. Control your emotions. All your decisions need to be made with a logical approach. While trading, remove fear, greed and hope from your mind.
7. Don't change your trading plan without consideration. For example, if you didn't choose a particular share to trade in the first place, don't trade it because everybody suddenly has started to.
Here are some basic rules you should consider while trading stocks, but there is a lot to learn on the subject, as I said.
That's why I've decided to have stock trading signals. More than that, I will have a free trial period so everyone could have a taste of what it's like to be a successful stock trader! Stay tuned for the updates!