Awareness regarding day trading stock picks allows a day trader to gain maximum returns from the market.
The day trader has to capitalize on intra-day price volatility in the most active stocks to reap a regular profit from the stock market.
The main advantage of day trading is that one's stock positions are not held beyond the current trading day.
Hence, the chances of potential losses that may arise due to holding a stock overnight are minimized.
Increased leverage and profit in any market condition are the other key advantages of day trading.
Since trading period is limited, day trading stock picks become a crucial helping factor.
However, day trading may sometimes lead to immediate financial losses.
Lower liquidity, higher volatility, changing prices, and unlinked markets are some of the drawbacks of day trading.
It is, therefore, necessary for a day trader to have adequate experience and thorough knowledge regarding the securities market and trading techniques.
This also necessitates a detailed analysis of the stock picks list and applying one's discretion when selecting the stock.
Day trading stock picks are chosen based on a set of strategies or methodologies, of which the most important are technical analysis, trend analysis, relative strength ranking, fractals and volumes, chart formations, and algorithms.
One can look out for reliable newsletters which provide expert advice related to the most active stocks and indices.
Further, there are myriad Web sites that provide tips and day trading picks.
Interactive chat rooms provide first-hand information on the day trading stock picks.
Many good books are available which can educate the day trader on day trading stock picks, as well, though this information is not as up-to-date as Web sites and newsletters, in general.