- Buy day trading software. To day trade stocks, you need three kinds of software. Data software provides price feeds. Charting software charts prices and offers technical analysis indicators. Trade execution software allows a trader to execute trades.
- Open an account with a direct-access broker. The law requires that you have a minimum of $25,000 in the account at all times.
- Research a company before you buy its stock. You should review historical charts to learn about its past performance and look at its earnings report to find out if it is profitable
- Join a stock pickers' group. Stock pickers are investors who pick stocks or mutual funds based on supposed mismatches between the current market prices and their hypothetical real values.
- Decide on a trading theory, such as Bollinger Bands. To make it simple, Bollinger Bands are average price levels above and below the current price. When the stock price crosses these levels, you should either buy or sell the stock.
- Keep abreast of business news. Daily factors can influence the movement of any stock you are considering trading. Company news, press releases and national news are all good sources of information.
Wednesday, March 14, 2012
How to Day Trade Stocks
Day traders sit in front of computers buying and selling stock throughout the day, hoping it will go up in value. They own stock for only a few minutes or a few hours. The number of trades made in a day may vary from two or three to hundreds. Day traders often buy stock on borrowed money, making day trading extremely risky. Some day traders are bank or investment firm employees, while others are individuals working for themselves.
