0Yes you can’t ( predict ) Let this prediction sticks with the Pandit’s only. No pun intended I do respect them for their predictions and knowledge they have in there arena.
But let’s focus on the question.
There is nothing like predictions here in Stock Market.
Here, The terms and things which is going to help you in forecasting future price movement of any stocks in day trading is completely based on speculations.
What gives you and makes you a successful day trader is;
Observations
Knowledge
Strategy
Risk - reward discipline
Quick decision making ability
Depth research (homework)and assumptions based on your knowledge.
Now , moving to your query I will try to explain the above mentioned words in easiest way possible.
- Knowledge
For being a Day - trader the knowledge you must have is of
TECHNICAL ANALYSIS
When you start your day trading with the use of Technical Analysis knowledge you use different kind of Technical Indicators to analyze stocks price movement.
You can read in details about this in this answer of mine Kindly go through it
How do I pick stocks daily for intraday trading?
In the above answer you will find how simply a trader is using very simple strategies to maximum profits and how it’s really working out.
Now the other things you need to focus on the given answer above is
2. Observations
A very close observations was there on the chart and price movements of that stock which finally gave the result in positive and earning income from trading.
Now I will share some more examples with you which you can observe and utilize in making trades.
You can also say it a way of doing analysis observing volumes ( Volumetric Analysis )
Volumes in Stock market is like total amount of shares being traded.
See what you need to observe.
What I am trying to get your attention here from the above given figures is make a close observations over the volume.
On 18th oct stocks traded is 29 thousands but the very next day the volume was up and came around 3 lakhs 39 thousand.
If you are day trader keep observations over the rise in volumes, In a day time whenever the volumes increases by 1.5 times in comparison to the last day volume definite go for long chances as it indicates the strength of bulls on the counter.
The stock was open around 127 the day when volume jumped and not only volume the stock also jumped from 127 to 137 almost around 6% rise that day.
Now,
Let’s see the second example
On 21st oct volume was 46 thousand but the very next day volume jumped from 46 thousand to 17 lakhs approx and see the result stock moved from open price 140 to made a high of around 160 rise of 16%
volume in comparison to last day volume whenever increased by 1.5 times go for long and this observation and strategy will give you very least chance of disappointment. Most of the time it works !! Practical experience.
The same way you can observe the other days also and yes you check volumes in the live market by using screeners to find volume gainers of the day or you can closely watch few stocks which you can find out by doing some homework.
check whenever the volume increases 1.5 times the volume of previous day it’s a definite jackpot ( 95% times some exceptions are always there )
Last day volume 16 thousands shares
1.5 times means
16000 x 1.5 times means 24000 volume in a day time
16000+24000 = 40,000/- whenever the volumes starts increasing from 40k go for long and its going to blast for sure I will share the intraday chart and volume for that day have a look !!
This is just one example of doing observations there are many other thing one need to observe for making perfect trades.
The other indicators which can help you in analyzing stock movement for intraday trades are EMA / RSI / BOLLINGER BAND / MACD / FSTO and many others so you need to have a strategy which suits your trading styles you can’t simply observe everything.
So the strategy part will discuss now is like if you are a scalper and your trading style is scalping you will love FSTO , If you are a day trader and simply makes 1–2 trades you may love EMA / RSI and so on ,
It depends on the style of trading suits your ability you chose these indicators for your trading. So make a plan sheet how exactly you can work as per your schedule and how you can make your trades.
Pulak Priyesh's answer to How do I know if a stock price is expected to rise in the future?
Read the above answer this will help you in making decisions in day trading using EMA.
Life as a day trader is full of excitement and thrilling experiences you face challenges, you tackle them and come out as a winner using various strategies risk - reward managements and you need to be well equipped with the armours to win over stock market challenges and the words I explained above is going to act the same.
Enjoy life as a trader and the feeling just awesome.
Hope I helped you on your query in the simplest way possible.
