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Step 1
Look for liquidity and volatility in a stock. Liquidity allows you to enter or exit a stock at a good price. Volatility gives you a feel for the expected daily price range. Research both these factors and develop your entry plan.
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Step 2
Research Intraday Candlesticks Charts so you can analyze the action of the price. Look specifically for the low price of the day, a spike in volume of traders and open orders. Your goal is to sell your stock when interest wanes.
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Step 3
Determine a Stop-Loss strategy for every stock you purchase. Set a price at which you are ready to sell your stock and also keep a mental note of when you might want to go out depending on the action. Don't forget to factor in commission fees and taxes.
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Step 4
Keep an eye out for Hole-in-the-Walls. This term is used to define the end of an upward or downward trend, potentially about to reverse. Hole-in-the-Walls are frequently good entry points for day trading.
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Step 5
Play with NASDAQ if you want to see more action. It tends to be more volatile than other markets, such as NYSE and AMEX.
