How to day trade stocks for living? Stock market is where you can make the most of your money. Comparing with gold and other metals, the returns from stock market is splendid. If you are a day trader, you can make from 3 to 5 percent from stocks daily.
The most important thing is to find the stock trend for the day. It may go up or down depending on the trader’s behavior. What are the factors that decide the trend and how to make the most of stock market. How to get more returns than other investments?
News is the solid factor that you must consider to make a killing at your stock trading. Without news or rumour, levels especially the fibonacci levels never work. Observe the news in the market, it may not be suitable in the short term but the benefits are long term.
Open interest is another factor to consider. You can use the options to find the market trend. When the volume and open interest increase along with the price, there is a chance of price going up. If the volume, interest and price goes down simultaneously, then there is more possibility of price going down. So studying the market trend using options is possible.
When the index is green, its time to buy or hold the stocks that are bought. When the index is red, its time to sell or hold the short sell positions. Never short a stock on gap up day and never buy a stock on a gap down day.
Chart patterns decide the trend. Wait for the stock to react for the news or rumour. Levels are to be noted which should indicate the stoploss for bulls or stoploss for bears. It is where you would get more pips. Act on the stoploss trades of others, it would be a winning trade.
Have enough funds to survive another day. Lose the fear of handling money and become more confident, that is where you become rich. Getting rich overnight is never possible, it would take weeks if not months to make consistent profits from stock market. And stock market is gambling, if you dont have a plan.