Tuesday, September 1, 2015

How do I Make Money Daily in the Stock Market With Little Capital?


Understand market volatility. The market as a whole, as well as many individual stocks, can fluctuate between 1 and 3 percent from previous day's close on many trading days. For a stock priced at $30, that would represent a change in value of $0.30 to $0.90 per share. Potential profit will depend on the total number of shares you wish to trade and your timing in getting in and out of the position.
Decide on the amount of trading capital you can commit. Buying shares in the stock market is affordable to everyone. You can buy as few as 10 or 20 shares, which may cost you only a few hundred dollars. Suppose you can commit $3,000 in capital, which would buy you 100 shares of a $30 stock. In the meanwhile, your profit target would be around $30 to $90 per trade per day.
Research a group of potential stocks for trading. Stocks do not rise and fall all at the same time and daily trading involves trading many different stocks. Trading daily requires not only the fine skills of technical analysis but also a broad knowledge about industries and sectors. Moreover, information about specific companies and the understanding of various economic data in general affect trading results as well.
Adopt a trading strategy. Two contrasting strategies are momentum trading and contrary trading. Momentum traders believe that what is rising or falling may well continue that trend. Contrarians believe that an apparent trend may soon reverse. Investopedia refers to momentum trading as looking for stocks moving in one direction on high volume. Contrary trading also concerns stocks in a directional course but on low volume. Both strategies may prove to be valid only if confirmed by the convergence or divergence between trading volume and price.
Take the profit or cut the loss. Discipline in trading is the willingness to overcome greed and fear. Always take the profit or cut the loss as planned, unless you have decided as an alternative to hold a position longer if a trade prediction was wrong. But any uncleared position ties up the capital and should be avoided when the total amount of capital is limited.
VPS Hosting

No comments:

Post a Comment