SHARETIPSINFO >> Articles Directory >> Importance of Nifty support and Nifty resistance and How to make wealth in day trading
Importance of Nifty support and Nifty resistance
Stock markets are mercurial in nature and it gets affected when there is any happening in the world whether it relates to religion, politics, finance…etc. So it is very important that you deal with the stock market strategies very productively. There is also a great importance of Nifty support and Nifty resistance in the stock market.
Analyses of the market
It is very important to analyse the Indian stock market and you should know which stocks need to be purchased and what would be an ideal time to sell the stocks in order to protect your invested money. Without making good analyses of the market it would not be possible to invest in a good stock market. The worst thing that most investors do is that they consult their friends who do not have any idea about the current market scenario. They give them the wrong advice and at the end of the day they lose all their hard earned cash in the market.
Make your own strategy
Try to have a strategy of your own so that you do not feel guilty after losing your money in the market. You will find many people who do not deal in stocks but they prefer to trade the NIFTY. NIFTY is always preferable when economy does well in the market. There are many people who trade the NIFTY with the hope of getting good returns from the stock market. You should remember that the movement of stocks tend to be cyclical, news driven or even range bound in certain periods of time.
You should always try to identify the right sector and also be able to select the right stock. You cannot make good profits from the market unless you select the right stock for you. In NIFTY, you are able to get all the good as well as the bad news that is reflected in the market. There is also no demat cost. So there is a great importance of Nifty support and Nifty resistance. So, you can get all the current updates of NIFTY and you are able to know which stocks would suit you the best.
How to Make Wealth In Day trading
When we say day trading, we mean the practice of buying and selling financial instruments. However you should keep in mind that that it should be done within the same trading day such that all the positions are usually closed before closing of the market in the trading day. Day traders are people who practice or participate in this type of trading. Now let us have a look at how to make wealth in day trading. We will also focus on marginal trading and look whether it is risky.
About margin trading
Have you come across some day traders who sometimes borrow money to practice their trade? So this is known as margin trading. There is no cost to day trader for the margin benefit since margin interests are typically only charged on overnight balances. It could be either extremely profitable or extremely unprofitable because of the nature of financial leverage and the rapid returns that are possible in the Indian stock market. There are high risk profile traders who can generate either huge percentage of returns or huge percentage of losses in their money. This is the main reason why these types of traders are sometimes known as ‘gamblers’ by most of the investors. It is mainly due to the high profits or losses born by them.
About the risk involved
There are many investors who think that day trading to be very risky and so they do not go for this type of trading. There are also some rules and regulations where it requires to have prior trading experience before entering into the market and also to whether the clients understands the risks of this type of trading. There are also some strategies that sometimes require sophisticated trading systems and software. You might be having the knowledge that there are many traders that use multiple monitors or even multiple computers in order to execute their orders. There are some traders that use real time filtering software.
You should know some concepts like NSE, BSE, NASDAQ…etc. So, you should have some idea and also about the tips to know how to make wealth in day trading.
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