When you enter into a trade early on in the day and the market keeps on moving in your favor, should you hold that trade overnight? What about over the weekend? Naturally, those questions only apply to money making trades. Booking a loss overnight is purely for amateurs.

A newbie ought to close down his day trades at the end of the day, but an experienced pro has the option of holding the trade overnight. When a market finishes inside a couple of ticks of its high, it commonly exceeds it the next morning. A market that finishes on its lows commonly taunts with lower lows the next day.

Now zilch is guaranteed, because the market could end close to its high, get blasted with dreadful news overnight, and open up precipitously lower. This is why just veteran day traders have the choice of keeping their trades overnight.

Research, knowledge, and discipline put your trades in a more cool headed, more cerebral base. You must research the past, estimate the likelihood, and attain educated conclusions for the future. When you day trade, there are oodles of minutes when the market goes nowhere, letting you calculate the numbers.

So traders I know use an individual computer or acquire two computers and devote one to trading and another to research.

Now here’s a killler day trading tactic that involves where the stock closes relative to its day’s high or low.

Look at one year’s history for the market you are trading. Create a spreadsheet and start asking yourself questions. When the market closes just five ticks from its daily high, how many times did it reach a new high the next day? How far did it go the next day? What about on days when the market closed within five ticks of the lows? How low did it go the next day?

When you arrive at the solutions, ascertain what occurred when the market closed within 10 ticks of the high, and so forth.

Pros are given to deal in the same market month after month, even when there is a high turnover of amateur traders. Pros have become accustomed to trading a certain method, and to trade with them you must identify those patterns and identify them on a stock chart.

You need to base your trades on truths and chances, not on gut feeling and desire. You must perform your own research. You can’t purchase the solutions, because only determining them yourself will give you the confidence to trade.