Simple Day Trading Tips - 4 Tips That Will Make You Money

Day trading makes for good profits in the space of 24 hours simply because you buy low and sell high within minutes. Although the profits for each transaction may be small but when multiplied with the number of trades conducted, you can walk away from the trading floor with a minimum of $1,000 per day.

Of course, this is with the assumption that you adopt the following simple day trading tips. As the name implies, you need not worry about wracking your brains over complicated mathematical equations. Basically, all you need is the willingness to open your mind to new ways of seeing certain things, the experience to know which old approaches to keep in your investment strategies and the common sense coupled with wisdom to know the difference.



First, you should only trade in liquid stocks. This means stocks that exhibit high trading volumes and, hence, can be bought and/or sold in sufficient quantities to achieve two purposes simultaneously - make a decent profit and make little impact on the overall stocks prices.

Second, you must look for relatively stable trading volume within the day as well as average trends in the last week. This is one of the simple day trading tips that novice day traders overlook because of their intense focus on the minute-by-minute events affecting their shares.

Although you are often required to make decisions in a matter of seconds as soon as the opportunity to profit presents itself, you are well advised to look at trends. Keep in mind that stocks tend to follow certain patterns, thus, knowing their history provides for a way to predict the cycle although in a limited manner.

Third, and in relation to the second tip, you often have to move with the trend. This is common sense as it is more profitable to swim with the tide than go against it especially where day trading is concerned.

This tip can be simplified as: In a bullish market, look for stocks on the rise. In a bearish market, go for the stocks that are falling. Doing otherwise often means that you will be buying high and selling low, the complete opposite of the day trader's number one dictum for success.

Fourth and most important of all the simple day trading tips is to do your research. The stock market is influenced and influences many aspects of society from economics to politics so much so that it is confusing, bewildering and frustrating to understand all of these factors without hitting the books, so to speak.

We do not mean just reading books on stocks trading, of course. You should also look at the stock indexes, stock filters and other stock of the trade so as to get a general idea of the stocks that can spell profits in minutes.

Ultimately, it is not these simple day trading tips that can make or break your career as a day trader. It is your willingness and resourcefulness to adopt them to suit your own investment strategy that matters the most.