Day trading in stock market

How to do day trading in stock market?

Day trading in stock market

Day trading the practice of moving in and out of positions very quickly, with the primary characteristic closing of all open positions by the end of the trading day.
This achieve two goals.first, it avoids the risk that securities may open significantly higher or lower than the previous day's closing price, in which a case trader is not able to control or time and exit strategy. Second margin requirements and circumvented by closing leveraged positions, since margin requirements are computed based on open trades at the end of the trading day.


As long as traders are opened and closed within a single trading de, no margin maintenance supplies, since that is based on balance is at the end of a session. This leverage opportunity can be abused, which is why active traders are likely to fall under the definition of a pattern day trader.

Frequent trading may lead to a trader being classified as a pattern day trader, a status defined by the financial industry regulatory authority FINRA and the securities and exchange commission is SEC. A pattern day trader is any trader who buys and sells a specific security or position for more times in any five consecutive market session. And individual fitting this criterion is required to maintain and equity balance of no less than $25000 in a margin account.

The key today trading is timing of both entry and exit. For this reason, many day traders rely on candlestick chart analysis in conjunction with confirming momentum indicators and other technical price and volume patterns to improve chances of timing traders profitably. 
I am including all the three scenarios in trading.
1.The price makes higherr bottom, for a lower top, after a decline or really respectively.
2. The price touches the exact same bottom or top, and then rallies or declines respectively.
3. The  price momentarily prices previous top or bottom, only to reverse course again.

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