Everyone has different techniques of buying or selling a stock. Before buying a stock do your own research. I try to put the list of stocks which I think would give maximum profit in short period of time.
A right buying point in the stock is very important which could maximise your profit or it could also minimise your losses if you make mistake. Selling point depends on how much profit is enough for you or how much loss your willing to take. You can use your own technical indicator for buying or selling stocks. Every brokerage firm provide technical indicator.
I prefer using combination of Relative strength Indicator (RSI) and Moving average convergence Divergence (MACD). You can read the definition of RSI and MACD below
http://www.investopedia.com/terms/r/rsi.asp#axzz1eb4nLqan
http://www.investopedia.com/terms/m/macd.asp#axzz1eb4nLqan
RSI has a range from 0 - 100 expressed as 20/80 or 30/70. When RSI crosses 20, it means its bullish signal & its time to buy, while RSI above 80 means bearish signal & its time to sell. Before you buy any stock at any particular day try to buy when RSI is below 20 and when you want to sell make sure, you sell it when RSI is above 80. This will maximise your profit.
MACD shows the bearish signal represented as red line while bullish signal is represented by black or blue line.
When the black or blue line is above red line, it means bullish trend and its time to buy a stock. While red line is above black or blue line then its bearish trend and its time to sell a stock.
I know every second is important while trading but, its a good practice to visualise a stock trend to know if your making the right decision at right time. It will take additional 2 second to know make right decision.
You can search "Day trading strategies" on this site with practical example from past.
Also look check out http://www.freefdawatchlist.com/2010/05/day-trading-strategies.html
A right buying point in the stock is very important which could maximise your profit or it could also minimise your losses if you make mistake. Selling point depends on how much profit is enough for you or how much loss your willing to take. You can use your own technical indicator for buying or selling stocks. Every brokerage firm provide technical indicator.
I prefer using combination of Relative strength Indicator (RSI) and Moving average convergence Divergence (MACD). You can read the definition of RSI and MACD below
http://www.investopedia.com/terms/r/rsi.asp#axzz1eb4nLqan
http://www.investopedia.com/terms/m/macd.asp#axzz1eb4nLqan
RSI has a range from 0 - 100 expressed as 20/80 or 30/70. When RSI crosses 20, it means its bullish signal & its time to buy, while RSI above 80 means bearish signal & its time to sell. Before you buy any stock at any particular day try to buy when RSI is below 20 and when you want to sell make sure, you sell it when RSI is above 80. This will maximise your profit.
MACD shows the bearish signal represented as red line while bullish signal is represented by black or blue line.
When the black or blue line is above red line, it means bullish trend and its time to buy a stock. While red line is above black or blue line then its bearish trend and its time to sell a stock.
I know every second is important while trading but, its a good practice to visualise a stock trend to know if your making the right decision at right time. It will take additional 2 second to know make right decision.
You can search "Day trading strategies" on this site with practical example from past.
Also look check out http://www.freefdawatchlist.com/2010/05/day-trading-strategies.html
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