If you are looking for fast profits, fast rush of adrenaline and fast market movements, then you should look into day trading stock market. You can make a profit in just a few minutes within the day even from just a few cents in up movement.
You will enjoy the adrenaline rush of being part of one of the most exciting and noisy market in the world. You must be on top of the market trends because they move so fast and your money may very well go down the drain in a blink of an eye. Day trading is only for those of the strong of heart, mind and nerves.
If you want to develop the characteristics of a successful day trader, you should avail the demo account trading offered by most online brokers. This way, you will have a taste of the ins and outs of day trading before placing your precious money at stake in the stock market.
You will soon discover that the number one rule for success in day trading stock market is to choose the most liquid stocks. Basically, this means stocks that have plenty of buyers and sellers that allow for fast movements in your position, either going in or going out.
It is also important to calculate the difference between the lots. The general rule is that if the difference is pegged at 15 percent minimum, you should consider buying at the bid price. If you are selling, make sure to sell at the asking price once the order is filled.
You may also choose stocks based on market depth through the NASDAQ level 11 quote. You will then be able to view the market makers with the best buy and sell offers as well as the quantity related thereto.
You may have noticed that keeping track of the prices is an important part of day trading stock market success. Most day traders will check prices anywhere from 6-10 times daily, preferably through the use of a personal computer with a fast web connection. Your decisions will then be informed and updated.
Your stockbroker should also be on top of things. You want fast and easy connection to his phone line just in case you want to buy or sell certain stocks. In many ways, a good broker relationship will spell the difference between losses and profits for the day.
Indeed, success in day trading in the stock market can be an easy thing to accomplish. You just need to learn all you can, trade on the highly liquid stocks and keep your broker.