Day Trading, as the term implies, refers to the practice of completing both buying and selling Free Stock tips in a single trading session/day. In this the basic principle is that of an immediate view avoiding the likely tremors of overnight newsflowsimpacting the stock prices. Since both buy and sell is concluded in a single session the fundamental analysis has little relevance in this style with the emphasis being on the trend, market sentiments and technical analysis.Short Selling in Day Trading Strategies Traders, depending on market trends, often indulge in Short Selling. This is a practice in which traders opt to sell first and buy later. Short selling has been a frequently used strategy in Day trading. Several indicators in intra day market trends encourage traders to adopt short selling. For example, if the Opening price and the Day High Price of a particular Best Free Stock Tips Provider is identical, then the trend of that stock is downwards and it can be short sold for the day to make money. Alternatively, if the Opening Price and Day Low of a stock is identical, then the trend of that stock for that day would be a rising one and trader should have a long (i.e Buy) position on that to make money.Understanding Market Trends for Short Selling In case the trend is negative for a particular session, traders may opt for Short Selling. Through short selling, therefore, traders often capitalize on the falling trend. In case the trend looks positive, then the conventional method of buying first and selling later is used. Both these methods can be used because the trade is settled at the end of the session without levying any future obligation on either the buyer or seller.In order to generate volumes and encourage traders, the brokers provide what is known as Exposure on the available Cash Balance of the trader. This basically means allowing the trader to transact with more funds than he has. The Industry average of this is around 10 times the available cash balance. However, this may vary depending on three conditions, namely,Market conditionsBrokers requirement for businessClient rapportRequirement available to the brokerCommonly known as Intra-day or speculation trading, the brokerage and statutory dues in Day Trading are much lower as opposed to the conventional delivery model. In the latter, the client buys the Best Stock Tips fully with his own funds and holds it till he gets a good price.Analyzing Market Situation for Short Selling This is applied when there is uncertainty and volatility prevalent in markets created by political and social situations. A case in point could be the situation created prior to the new BJP Government coming to power.Charting and technical analysis like the head and shoulder pattern, candlesticks, bar charts, etc.can be used to understand the probable trading pattern in the next few hours and plan strategies to profit from the same. This is possible because the trade is settled at the end of the session without any obligation on either the buyer or seller in the futureThere are some clients who are compulsive traders who indulge in short selling to enjoy the throbbing market pulse. However, more often than not they end up losing money because of the short time span that they have at their disposal to predict and time the markets.
