Popular Day Trading Techniques

Popular Intra-Day Trading Techniques

There are many strategies that can be learned by day traders. Some of the more popular techniques used by day traders are:

Trend following:

This strategy assumes that the stock being traded will continue its current direction, either moving up or falling down. The idea is to buy a security that has been moving and follow the momentum of the trade.

Contrarian TRADING:

This strategy assumes the stock can no longer continue trading in its current trend and is due for a reversal. The contrarian trader buys stocks that have been falling or shorts one that has been rising because they expect the trend will change. They usually use technical tools which indicate Overbought and Oversold prices. Continue reading “Popular Day Trading Techniques”

Top 5 essential qualities of a day trader

Top 5 essential qualities of a day trader

Day trading can be a stressful occupation for a lot of people. It can be equated to a roller coaster ride, with times of extreme highs and times of extreme low. While there is great profit potential in day trading, it comes with a price. Before deciding to embark on a career in day trading, a personal evaluation should be taken.

Here are a few essential qualities a day trader will probably need if they’re going to be successful:

essential qualities of a day trader



Because the pace of the business is so fast, a day trader needs to be able to make quick decisions. The inability to decide what to do in a precise manner can cause them to miss the potential trade, which could limit the potential profit and increase the potential loss. Those who can’t make a quick decision and live with it should probably stay away from day trading.


Day trading requires discipline because it must be treated as a business. A business person must establish discipline in their actions or their plan is certain to fail. Day traders must be disciplined when it comes to placing trades, recording their trades, and keeping their accounts in order.


Technologically savvy:

A day trader must be willing to invest in the latest technology that can make it more profitable to trade. By using the fastest, most innovative equipment, the day trader will be able to receive data faster and make a fast move when they have the best equipment on the market.


A day trader must have the ability to switch hats in a hurry and adapt to changing conditions. What looks like a bullish play one minute may be a bearish play the next, meaning a day trader will need to sell one position and change teams in a hurry. Adaptability will help ensure a higher level of success.


Mental toughness:

Not every trade is going to end up favorably, a fact that is true for day traders or anyone who is involved in the market. The ability to shake it off and move forward is essential, although a day trader like any trader must have the willingness to learn when things go wrong.

Many successful day traders exhibit these characteristics and use them to become more profitable in their new business. Before deciding to take steps toward becoming a day trader, it would probably be wise to take a personal checkup and see if you have the constitution to do it.


Day trading suitable for you?

Day trading! Are you ready?

Day trading

People often say that stock securities are a waiting game. So one can only imagine the risks involved when people involved in day trading try to accomplish the buying and selling of securities all in a single trading day. In fact, this venture is so risky that some people even refer to it as gambling.

Even the provisionary beginner’s luck is hard to come by when it comes to day trading. It takes some careful planning to earn positive dividends in this undertaking. If all goes well, one can leave his or her day job to earn loads of money in day trading. But it involves a strong and persistent approach to trading.
The positives here include the ability to close a deal within a single day, thereby eliminating further overnight risks. This is no laughing matter as huge profits can evaporate in an overnight. Also, there are no surefire secrets, just indicators of market trends.

Day trading! Perhaps, there is nothing more exciting than trading stocks for a living. If you are a typical 5-9 job goes.

  • You really hate it when your boss tells you to work on this and that. You do not want to be a slave anymore, you would like to answer to nobody.
  • See no future at all in your typical boring day job. You will always be that little work bee whom everyone can assign work. You are at the bottom of the food chain.
  • You hate office politics. Some people can be your boss just because they are better at office politics than you. You are always the one that does all the dirty work and gets no credit.
  • What you do every day is more boring than flipping burgers.

If you become Day trader

  • All the above gripes will be gone.
  • You can profit in a bull market, a bear market or even a range-bound market.
  • The sky is the limit. If your system can bring home 3000 INR every day, then it will possibly bring home 50000 INR and more.


Before you get all excited about day trading, you will have to ask yourself one simple question. Why do 99.99% of the people around me have a boring day job?

Is it risky?

The answer is no. Intraday Trading is much safer than investing. You close all your positions before the market closes every day. Thus, you avoid the possibility of a gaping-up or a gaping down the next morning. If your risk control is very solid, day trading is not risky at all. That is also why most brokerage houses give you a 1:4 leverage buying power for day trading instead of 1:2 for overnight. Nevertheless, I never use margin.

Is it hard?

The answer is yes. The hardest part is your market psychology and discipline. It will take you a long time to master these 2 things. And I am sure that you will relapse after a few good trades. Intraday trading for a supplementary income is easier than for a living since you have no pressure to make the ends meet every month. Of course, if you have a consistent system to make a supplementary income, then you can easily transition to trading for a living.

One single most important thing is that there is absolutely no shortcut in trading. You will be a profitable day trader only after a tremendous amount of hard work.

Here are 10 preconditions I think you need to meet.

  1. You should be available from 9:30 AM to 4:00 PM.
  2. You should be realistic about your gains.
  3. You should know it will take you quite sometimes before you can be profitable.
  4. You should know it will take a lot of hard work.
  5. You do not depend on trading for your main income, which would put too much pressure on your performance.
  6. You should have at least 3 lakh disposable income. The more, the better!
  7. You should have a decent computer, a dual monitor setup and high-speed Internet.
  8. You should be optimistic and upbeat about your trading.
  9. You should have solid knowledge of technical analysis.
  10. You should know you will lose some money in the beginning, which is the tuition everyone has to pay. You are not an exception!


It is easy to get all your hardware ready. But it will take you a long time to be mentally ready. You will ride your emotional waves up and down for quite a long time.  I think the coolest part if you can make it, is that you do not have to answer to anyone.  Good Luck!