Day Trading – A guide to trading stocks! – @stockstobuy –
Day Trading is short term trading of shares of stock. Day Trading can be very lucrative if you follow several keys rules and remain disciplined. Day Traders usually buy and sell stocks quickly through out the day and avoid holding a stock overnight.
Day Trading Rules:
1. Don’t hold stocks overnight
– If your are hardcore day trader, you want to avoid holding stocks overnight. Events can happen overnight that cause the stock market to drop. This will most likely cause individual stocks to drop as well. Day Trading is all about making trades during the day and coming into the next day fully in cash and ready to trade the next opportunity.
2. Buy break out stocks
– Only buy when a stock has volume and news surrounding the rise in price. After the open, a stock will set a high and a low. Buy the stock if it’s breaking up through the high and sell into the rally. This day trading tip has the highest success rate because when a stock is breaking through the high of the day, the computers on wall st are programmed to buy as well. If you can’t beat them, join them!
3. Cut losses quickly
– If you buy a stock and it just won’t rise but is dropping or you are holding it for a small loss, sell it. Cut your losers and let your winners run.
For more day trading tips and to receive my pre market newsletter, join my stock picks group. For more information in the top stocks in 2014, visit these links – Stocks 2014 – Top Penny Stocks 2014 – Stocks to Buy 2014
See original article here: