Day trading is the act of buying and selling stocks within the same day or even multiple times over the course of a day.

Taking advantage of small price moves can be a lucrative game — if it is played correctly. But it can be a dangerous game for beginners or anyone who doesn't act according to a well-thought-out strategy. What's more, not all brokers are suited for the high volume of trades made by day traders.

Let's take a look at some general day trading principles:

Research the Trend of the Market

A Trader should find the market trend in the first few minutes of opening of NSE market for trade. Always buy strong stocks in an uptrend and Short Sell weak stocks in a downtrend first and square off your positions later.

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Finalizing your Daily Profit and Loss Limit

A trader who wants to do day trading has to finalize his daily profit and loss target. Once he gets the decided profits, he should square off his all positions and stop trading for the day.

Selecting Right Stocks for Trade

Once the trader is ready with the Market trend, he should select the best sector first and then the best stock in that sector, where that trend will work and he can make money.

Putting your Orders and Booking Profits

Whenever you put any trade, maybe a buy and sell later or even a short sell and cover order later, decide the targets and stop loss for the trade. Don’t ever change the Stop Loss of the same under any circumstances.

Analyzing your Trades

Once the market is close, I request you open your trading book and write your own report of the trades done by you and what went wrong and which decision was right. This will help you to avoid loss-making trades in the future.

Traders should avoid trading for a few minutes when the market opens for trade and also when the market is closing for the day. If you are a newbie to trade, trade in small quantities first, later on when you get experienced, you can trade as per your requirement.

If you are inexperienced and need some guidance, I suggest you get the help of the best players in the market. I am trading on recommendations of Eqwires Research Analyst from the last one and a half years, and they have given amazing results till now. I am grateful to them and recommended many people, and they are also getting good results.

I hope it will be helpful.

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