Day trading stock picks can make the difference between your stock market experiences leaving you broke or making you a millionaire. As the internet becomes ever more evolved, it's easier and easier to learn about stock trading. Read on to find out what you should look for in day stock trading tips / picks.
The main and most important point when looking for day trading stock tips or picks is to make sure it's coming from somewhere reliable. Anyone can start a rumor or make something up about stock x having a good price because the director got voted off the board or whatever, but look for some hard figures before you make any decisions. If the tips are coming from a legitimate tips service, ask them for their historical percentages-that is the amount made on average when their tips are followed. If they are legit they should be pleased to provide them.
The next thing you want to look at when deciding what to do with a day trading stock trading tip is to look at the volume being traded. This is readily available in financial papers and websites. You will usually find that if a stock price is rising or falling for a legitimate reason, then the volume of the stock being traded will rise – that just means more people are getting rid of it as the prices goes down, or investing as the price rises. It's unusual to see a serious price rise without an accompanying volume rise, so always check this when someone gives you a tip.
Do some digging. A good indicator of the strength of your day trading stock pick is to do some research on the company online and in the financial papers. You want to look for company Directors buying or selling shares in the company. This is heavily regulated, and as such the trades become public knowledge to keep everything above board. It's not a hard and fast rule, but generally if a Director is selling it's because the price is about to go down, and the opposite is usually true if they are buying.
Do not buy into someone's day trading stock tip unless they have either some money invested themselves or they are some kind of trading professional. Some people, known as "armchair" investors like to think of themselves as experts without ever putting their money where their mouth is. Do not listen to their tips, as if they are not willing to invest in their own tip, you certainly should not be.
Sometimes it looks like everyone has some kind of day trading stock tip for you, but hopefully these voters will help you make the right choices. Click the links below to find out how you can get tips from real reliable sources.
Source by Felix Gould