Lets face it if most of us had a choice to have to get up and go to work or work from how most of us would pick the latter.
Daytrading stocks is easier and less expensive due to the internet and low cost discount brokers.
When daytrading stocks there are some important basic rules to set your foundation around.
1.
Pick The Cheapest Discount Broker - These days it is very difficult for stock brokerages to have any sort of way to set them apart from one another.
The exception being cost per trade and stock research.
Trading cost are as low as $2.
50/trade with few discount brokers charging more than $5/trade.
Since fees are the only guarantee when trading stocks lower is better.
Just about every broker has a complete library of information to research on any stock so I would not focus on anything other than the fees.
2.
Trading Hours - Since the stock markets open at 9:30 a.
m and close at 4:30 a.
m.
the most activity is within the first and last hours.
These are the hours when investors are opening and closing new positions based on the news and information that came out since the market closed the prior day.
These are also the hours with the largest swings in share price.
Some investors only make trades during these two hours.
3.
Close Out Positions - Professional stock traders always close out their stock positions before the market closes.
The reason for this is that anything can and does happen between the closing and the opening of the next day.
Too much uncertainty is even to risky for traders since an earthquake, political moves, or company information could pound a stock before it opens the next day.
Trading stocks for a living is very exciting and can make a trader very wealthy once they learn and put some techniques in use.
These tips are just a few of the many that exist in trading stocks but they are very important.