Why do investors trade stock daily?
Trade stock daily is something that many investors do.
The reason behind it is because penny stocks are very volatile, it gives the opportunity to make profits in very little time.
At the same time, this volatility also comes with the chance of losing large amount of money.
As a result, those who are successful through this method spent long hours conducting research on the market.
I’m going to share some tips with you on how to trade stocks daily.
Hopefully you’ll find them helpful during your days of trading.
How to trade stock daily
In order to trade stocks, first thing is to register with an online broker.
This will be just the beginning as you know you’ll have to educate yourself.
I know many people and some of my family members who have made this mistake.
They opened a brokerage account and then picked a few stocks and start trading.
It didn’t take them long to realize that’s it’s not the way it works, unfortunately.
Try not to be like them because you don’t want your portfolio to get hit this way.
Always search and research your stocks a day prior so that you’ll have enough time to trade the next day.
How to search for the right stock for day trading
When searching for stocks it always good to use a stock screener.
It can give you a good idea as of which stocks to focus your attention on.
I usually conduct my research on stocks that are very active with their volumes and prices.
These two factors are important.
Although penny stocks are very volatile, some are more active than others.
So, if you want to day trade you would want to pick those that are very active.
They don’t need newsletter releases in order to move.
What should be next in your research for day trading?
You’ll need to take a quick look at the company financial report.
Although this report is more helpful for long-term, it won’t hurt to check it.
Those reports aren’t secrets and that’s where all companies share their most important financial information.
A quick Google search will reveal any company’s financial report to you.
From there you can look through their data.
You’ll see if they’ve been making profits or loss.
You’ll be able to compare them to other companies within the same sector.
All these information can be a part of your decision making.
Look at their charts before you day trade them
Learning how to trade stocks, you’ll also need to learn how to read their charts.
A stock’s chart provides so much if you know what to look for.
You can look for the stock’s history, how it performed in the past.
It’s a good idea when looking to see if a stock still has space to move.
The chart has the current price of the stock, it may have some delay though.
It always a good thing to look at the past three-month movements.
Depending on what you find about the stock during the past three months, you can proceed deeper with your research.
Look for the company financial report release day
This can either break or build your portfolio in one day.
Therefore, you should put this at the top of your research prior to starting day trading a stock.
Most stocks run on news.
Good news will usually increase a stock’s price; on the other hand, negative news will hurt its price.
If you pick a stock that has just released its financial report, and everything looks good.
Chances are that you’re going to make profits.
If it’s the other way around, then you should not day trade such a stock.
Check out some penny stock forums
Under no circumstance should you rely solely on others information to trade stock.
However, other people’s opinions are helpful after you’ve exhausted your research.
Be part of a forum to get ideas as of what other traders are doing.
Most penny stock forums are often very active, and everyone is trying to help one another.
Investorhub is a forum you can start off with if you’re interested.
Start early with your day trading
Usually, if a stock is going to surge in its price it happens early in the day.
The market opens at 9:30 AM ET, but premarket activities start at 9:00 AM ET.
Even if you’re not going to buy your shares during premarket, it’s a good idea to start watching the moves.
The earlier you can get your positions the better it is for you as your plan is to sell off before it goes down.
From my experience, the first 30 minutes often come with the most activities, you might want to watch for this timeframe.
Know when to take your profit
Day traders have one thing and one thing only in mind when the day starts.
It’s making money.
Nonetheless, it’s not so easy because many of them are failing to take their profits occasionally.
Sometimes, we let our emotions get the best of us, and it’s really a recipe for disasters.
With that being said, when your positions increase a descent amount, you should sell off.
Don’t say let me wait for more profits.
It’s always best to sell and take profits than to hold for more and lose it all.
Trade stock daily is very doable. Many investors are doing just that as their full-time job.
But it’s a job that requires dedication, self-discipline, and to know how to keep your emotions at bay.
If you can control your emotions and you always do your due diligence you should be in good shape with your day trades.
Don’t forget to share this post.