INTRADAY TRADING: TIPS, STRATEGIES & BASICS
Intraday trading is riskier for traders to invest than investing in the regular stock market. For beginners, it is important to understand the fundamentals of such trading to avoid losses. Individual’s trader is advised to invest only the amount they can manage to pay for or lose without facing financial hitches.
A few intraday trading tips discussed below should help investors in making the right decision.
Tips for Intraday Trading
Below are a few tips for intraday trading in Indian share market which will help investors in making the right decision:
- Choose Two or Three Liquid Shares
- Determine Entry and Target Prices
- Utilizing Stop Loss for Lower Impact
- Book Your Profits when Target is reached
- Avoid being an Investor
- Research your Wish list thoroughly
- Don’t Move against the Market
- Basic Rules for Intraday Trading
- Intraday Trading indicators
- How to make profit in intraday trading
- Intraday Time Analysis
- How to Choose Stocks for Intraday Trading
Choose Two or Three Liquid Shares
Squaring open positions before the end of the trading session is done in intraday trading, for this reason it is recommended to choose two or three large-cap shares that are highly liquid. Traders investing in mid-size or small-caps can result in having to hold these shares because of low trading volumes.
Determine Entry and Target Prices
Determine your entry level and target price before placing the buy order. It is common for a person’s thinking to change after purchasing the shares as a result, trader may sell even if the price sees a minor increase. Due to this, trader may lose the opportunity to take benefit of higher profits.
Utilizing Stop Loss for Lower Impact
If the price falls below a specified limit, Stop loss is a trigger automatically as this is beneficial in limiting the potential loss for investors due to the fall in the stock prices. Traders who have used short-selling, stop loss reduces loss in case the price rises beyond their opportunities.
Book Your Profits when Target is reached
Traders most of the days suffer from fear or greed. It is important for investors to also to book their profits once the target price is reached and cut their losses. The stop loss trigger must be readjusted to match expectation of the individual if they think the stock has a further possibility of rising in price.
Avoid being an Investor
Investing and intraday trading, requires individuals to purchase shares. Yet, aspects for both these strategies are distinct. One kind considers the technical details and another adopts fundamentals details. It is common for day traders to take transfer of shares in case the target price is not met and traders waits for the price to recover to earn back money. This is not worthy of investing as the stock was purchased only for a shorter duration.
Research your Wish list thoroughly
Traders are recommended to include seven to ten shares in their wish lists and research these in depth. Also knowing about corporate events as mergers, bonus dates, stock splits, dividend payments, etc., along with their technical levels.
Don’t Move against the Market
Market moments are not even predicted by experienced professionals with advanced tools. There are times when all technical factors show a bull market; however, there may still be a drop. To avoid huge losses it is advisable to exit your position if the market moves against your expectations.
Earning smaller profits by observing to these intraday trading tips & strategies should be satisfactory yet stock returns can be huge. Intraday trading provides higher influence, which provides good returns in one day. Being satisfied is crucial to succeeding as a day trader
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