Online Trading – An Overview That You Must Know Prior To Opening That Online Trading Account9/25/2016 When it comes to making money in the stock markets, you may have heard many stories of easy money and also where traders have lost big money in a single day. These incidents happen on a daily basis across trading sessions and should not be the basis on which you decide to enter into day trading. You have to know more before you can step in.
What is day trading exactly? Today, it is easy to trade in stock markets if you have the demat account, money in your bank, access to a trading platform and an online trading account. Online trading is often mistaken for day trading and that is not the truth. Online trading is just a broad term for share market trading that is done online and should be seen as such. Day trading is where a trader takes position on a stock and exits it within that day, either making a loss or profit. That is because any trades carried overnight bear the risk of something happening in overseas markets that can either positively impact or negatively influence the opening of the Indian market the next day. Traders do not wish to carry that risk always. Day trading is not for getting rich overnight You have to dismiss the thought day trading can make you rich very soon. Enter day trading or online trading with the belief you should start small, make wins that are not too big initially before taking more aggressive positions. Even if you have the money, it is better that you are not very aggressive and taking over leveraged positions as they have the potential to wipe out gains in an instant. Day trading using your online trading account should be done more conservatively where in you set targets for profit due to small price movements of stocks. Use technical analysis and take guidance from your adviser It would also be useful if you can look at technical analysis charts of stocks you wish to take positions in before you place the trade. Take inputs from your adviser also so that you are making an informed choice and not doing a blind trade on a particular stock. Be prepared to suffer losses at times and you can minimize them by following stop order triggers faithfully when doing your online trading.
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