By Justin Fillion
Sometimes day trading strategies and intraday trading tips are more about avoiding mistakes so you can have the success you want versus learning about what to do. Unfortunately, history has always shown there are some common sense errors made when trading in the stock market. To avoid these mistakes, learning about them is often helpful.
Not Learning Enough
Yes it sounds a little silly right? Some don’t take the time to learn the trading day before they start investing. Actually rule number one for day trading strategies is to learn the market, understand how it reacts, what it reacts to, and assessing what technical trends you might wish to use as a way to make money investing. However, plenty of individuals feel after reading a couple of books or learning about stock market trading in high school that they can be successful.
So whatever you do, make sure you learn the trading day particularly the intraday if you want to be a day trader versus a long term investor.
Short Term vs. Long Term
Day trading means you hold nothing in the market overnight, but there are many who are not actually doing this and call themselves day traders. They look at intraday trading tips but then hold the stock overnight due to emotions and falling in “love” with the stock. This is not what day trading is all about. Often you are going to trade for a few hours, maybe even minutes. In a matter of minutes, the stock you buy into and sell will make an upward or downward move. Holding on to a stock that you’ve analyzed as a short term technical play is only going to create losses in most instances. At most an hour or two is all it will take to make a profit. But the savviest of day traders hold stocks for exactly how long the charts predict an opposite movement, and then liquidate their positions for a profit.
You might be unaware that many investors go with the Seasonal Stock Market Cycle. They try to make the most money between November and December when retail sales are at their highest. It is a pretty good idea particularly because this is also when some of the highest dividends are paid out. The economics don’t matter to day traders, as they only pay attention to the uptrend and downtrend in stocks and being able to correctly ride the waves for a profit.
It is an advantage and one to be used for day trading strategies versus trying to look at stock indexes and overall performance of the entire market. You want to look at and understand the psychology of the market as a day trader.
I am a stock market expert having experience of over 10 years. Being a part of this amazing field of work I actively try and provide assistance to individuals who seek it the most. Working as a full time trader, I write for some of the most reputed websites and provide consultancy services as well.
Article Source: http://EzineArticles.com/expert/Justin_Fillion/2045285
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