First, we will brush our basics of day trading.
In simple words “Buying a stock and selling that stock in on same trade session before closing bell on that day”.
The best Time frame to choose for Day Trading should be 1 hour / 30 min /15 min timeframe.
My recommendation is to choose 1-hour Timeframe since it gives you more authority on trading the stock and helps you by giving time for balancing your emotions before you trade.
How to choose Day Trading Stocks?
The most difficult part in day trading is choosing the RIGHT STOCK. We need to “choose a trending stock” to profit quickly. Generally Market either moves sideways or it will be trending upwards or will be in a downtrend. Stocks only trend upwards/downwards for only 20% of the time, but most of the time it will be moving in sideways. We need to be cautious in day trading by not entering into the stock which is moving sideways otherwise we may only end up in paying brokerage charges and in additional losses may add.
In coming days we will discuss:
How to choose a trending stock?
Day Trading Vs Swing Trading
Day Trading Strategies
Swing Trading Strategies
Price Action Trading
Best Books on Trading Stocks and more …