Day trading is very simple, you pick a target buying point and target selling point for a stock, and follow through with that prediction. You can use software to help you but ultimately you have to be the one picking the stocks. Many people day-trade for a living and even more fail. The main thing is having a sound approach with good bankroll management.
Things You Will Needpen and paper
Step 1Get analytic software to analyse stocks. There are programs that can predict the rise and fall of stocks within a few percent. You just have to follow the programs advise. Many people use a program alone to-day trade full-time. It's not that difficult because the computer program does all the work for you. You can find these programs anywhere online but beware of scams.
Step 2Open up a practice account. For 2 to 3 weeks focus on practice and gaining confidence. The main thing is to learn from your mistakes and try to make it better the next time. It's not hard to trade stock options, but it requires a lot of research.
Step 3Choose a broker. You can choose any broker you like but it's important to consider a company's status and cash flow. You can always get the best deals out of company's with the most capital. The big name company's are always a safe bet. Follow the momentum. There are plenty of traders who use this strategy to perfection.
Step 4Following the momentum is based on the idea that, when a stock goes up, it will continue to rise until it starts to drop. This means, you can go with the flow of traffic. In any case, you should make a profit if this strategy is used right.
Step 5Watch the news. Many people fail to watch the news and understand the benefits of a world economy. Everything is tied together, and as a result you will be able to predict winning and losing days for the market, which allows you to pick which days you want to jump in.
Step 6Pick a target buying and selling point for each stock. There are going to be many highs and lows, but you can minimize your bottoms and get the most out of the rushes if you pick a target for the selling point. You can do this by calculating the medium, high, and low in the history of that stock. You can realistically forecast when to start selling.
Step 7Bank roll management. With any form of stock trading, it's important to practice sound bankroll management. Never trade more than 20% or 1/5 of your bank roll on any given stock option. If you do lose money, limit your risk on the next trade until your bank roll increases.