There are thousands of different stocks to trade in the financial market. Almost every single company share is being traded, starting from the top end company ending with the least known company. In the eyes of untrained professional, the stock market looks like an “Unlimited Profit Making Place”. But in reality, trading the stock market is pretty hard since day traders need to pick the right stock at the right time for trading.
Figure: Trading Apple stock (AAPL) with Fibonacci strategy
Tips for Daytraders:
- Select the stock which is being traded in high volume so that you don’t have any problem entering and exiting the trade. Look for a minimum of 40,000 shares traded in the minute 5 chart.
- Don’t randomly switch stocks rather make a group for the best-suited stocks which you will trade. This allows the day trader to concentrate precisely on the stock market.
- Study your trade history and try to pick the most profitable stock that you have traded in the past.
- Lastly focus on two to three stocks and explore all the “In and Out” of the stock market so that you know which factors will affect the price in the longer term and which will effect for a shorter term.