How to day trade stocks

If you buy and sell stocks within a single day, it is called day trading. It is a money making strategy used by many investors to make short term profits on the stock market. It is more of a risk taking investing business than gambling and is usually used by more experienced investors.

Choose a trading strategy and style

Day trading stocks can be done using different strategies and styles depending with the investor. The most popular strategies are swing trading and arbitrage trading. As a day trading investor you can do as many trades as you like per day and some investors make a lot of money from this. There is also a software which you need to purchase and you need to study and understand market movements before you start trading. How to make profits In order to make profits, you need to take advantage of price movements and some professional investors use borrowed money to day trade. The best way to make profits is using large amounts of capital to buy highly liquid stocks, futures and forex and then sell immediately. Professional investors use specialsed software and trading systems to take advantage of market volatility.

Monitor market and price movements

As a day trader, it is important to know what is happening on the market every moment, a delayed order can result in a loss due to price fluctuations. Day traders must continuously monitor market movements online. Some use multiple computers to process orders. In order to avoid price gap risks, most day traders sell their positions before the closing of the market. Day trading can either be very profitable or unprofitable due to the high amounts of money being traded at any particular moment. Understand the market first Although some people promote day trading as a get rich quick business, it is in fact an activity which requires a lot of thinking and discipline. It requires a lot of patience and flexibility. There is need to study the market trends first before you can invest. There are a lot of secrets to learn and practice. It also requires some investment because you need to have certain day trading software and have a day trading guide in order to be successful in the business. Some investors have gone for a day trading course because they do day trading for a living.