Improve Your Stock Market Day Trading Track Record
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Everyone with some degree of interest in stock market matters should and can indulge in day trading. The right way to start is to select securities which you know well. You do not have to indulge in illegal insider trading to do this! Select well-managed public bodies, corporations which own top brands, and those with sound track records over the long-term horizon.
You may not be a wizard at math, but even a glance at a price graph over time will indicate a floor price below which a short-term gain through purchase is likely. The trick is to stay away from day trading in securities which you do not know well, or which you have not analyzed thoroughly. Even friends may pretend to act on impulses, but the truth is that day trading has to be deliberate and pre-meditated.
Another common mistake to avoid in day trading is to feel compelled to transact throughout each week. Day trading is not everyday trading! There will be bull-runs and even relatively quiet days on which it is best to indulge in some pastime other than day trading. Buying in the morning with a specific objective of realizing a profit on a sale during the same day has to be based on macro developments which affect trading sentiments in general. You must have a logical reason to believe that a security will quickly recover from an irrelevant bear hammering. Changes in interest and tax rates are typical examples of negative developments which do not affect the operations of well-managed corporations. Managements of such organizations can be relied upon to issue statements and to take actions to restore irrational falls in their share prices.