Many Are Chasing The Stock Market By Day Trading In The Pandemic

HomeBusinessMany Are Chasing The Stock Market By Day Trading In The Pandemic

The COVID-19 pandemic brought with it a complete paradigm shift in how people earn their livelihood. Innumerable people had to face sudden job losses or pay cuts. Businesses were shut down globally and people from all backgrounds were forced to look for alternative sources of income, even if it were just as a back-up in the dynamic and unpredictable work environment. Between February and April 2020, there was an increase of  46% in the number of households that had to deal with a fall in family income. As a result, the stock market witnessed a significant increase in the number of people trying their luck in the market, including the youth.

Among the millions of people who are attracted to the stock market, not everyone can take advantage of the full potential of the market. Only if you deeply study the market and make informed decisions can you generate wealth in the long run in the stock market. Here, we shall discuss the concept of day trading in detail to help you understand and use it to your best advantage.

Day Trading in the Stock Market

Day trading or Intraday trading, as the name suggests, is the technique of buying and selling shares on the same trading day, without holding them overnight with you. In a day trade, all the positions are compulsorily closed and settled before the stock market closes for the day. To facilitate day trading, leading stockbrokers offer the facility of margin trading to their customers to let them make high-volume deals in the stocks of their choice by making only a part payment of the total value of the transacted stocks. With reputed apps like the Bajaj Financial Securities stock market app, you need not step out of your house and can make instant trades in the market with just a phone and a stable internet connection.

How to pick up the right stocks for Day Trading

  • The volatility of stocks: Stocks with medium volatility move about 3% on the conservative side within a day. These stocks are ideal for Day traders to trade in, as these stocks create enough scope to make money with the price movement of stocks.
  • Liquidity of stocks: Intraday traders need to be on their toes and keep a keen eye on the market movements, taking full advantage of the speed and precise timing in striking day trades. Shares of small and midcap companies are highly liquid stocks that allow high-volume trades without affecting the stock prices much. These volatile stocks allow easy entry and exit to and from the market respectively and are ideal for day trading.
  • Good stocks for buying: Stocks that have a moderate to high correlation with the benchmark indices and have good credibility among market investors are considered good stocks to invest in, for intraday trading. Generally the top shares from the benchmark indices, so there is a general trend of upward movement for these stocks.

Entry and Exit Strategies for Day Trading

The best stocks need to be accompanied by sound day trading strategies to make profitable deals in intraday trading. One of the strategies to strike profitable intraday trading deals is to follow the current intraday trend. When there is an uptrend in the market, you can take long positions in the market while during downtrends, you can take short positions. You can consider making at least a couple of trades before the trends shift in intraday trading.

Keep yourself updated with the current stock market movements with the help of a reliable app like the Bajaj Financial Securities stock market app, which you can also use for Trading account opening.

 

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