Tips For Intraday Trading:
Intraday Trading is much riskier than Delivery Trading or Regular Trading. It is Important For the Beginnings to understand the basic tips of Intraday Trading to afford losses. Some experts advise Traders to invest only in the amount that you can afford to Lose.
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How To Make Profit In Intraday Trading:
Intraday Traders are always facing the risk that exists in the market. Daily stock Volume and Price volatility are some factors that play an important role in the stock Which are picked for daily Trading. I advise you not to take the risk over 2% of your total Total capital in a single Trade (for example: if you trade for ₹10,000 then take Risk of ₹200) to get higher Profit and Lower Risk.
Below Are few tips for Intraday Trading that helps Traders to make Right Decision:
Select only Two to Three Liquid Stocks:
Intraday Trading involves squaring off all open orders before the end of that trading session. That is why it is Important to select two or three large-cap shares that are highly liquid. Trading in mid-cap or small-cap can result in holding the share because of the low trading volume.
Decide Entry and Target Price Of Stock:
Before placing the order you must Decide your entry and Target price. It is common for trader there entry and Target price after purchasing the Share. As a result, traders sell their shares even if they see a nominal increase in shares.
Use Stop-loss For Reduce Risk:
Stop-loss is a trigger that uses to automatically sell the share if the price falls below a specific limit. It is a beneficial tool for a trader to minimize there Lose due to the fall of the stock price. Traders who trade in short selling, Stop-loss reduce their loss in case of stock price rises beyond there expectations. This tool is important for Intraday Trading.
Book Profit After Reaching Target:
Most of the Intraday Traders suffer from fear and greed. It is Important For Traders to not only cut their losses but also book your Profit when you reach the target. In case the trader thinks that there is a further possibility of rising the stock price, the stop-loss trigger must be readjusted to match this expectation.
Be a Trader More than Investor:
Intraday Trading and investing, requires individual to purchase shares. However, the factors of both these strategies are different. Where one kind adopts fundamentals Analysis where another one considers technical Analysis. It is common for the Intraday Traders to take the delivery of the Share if their target price is not met. Traders wait for the price to recover their losses. This type of strategy is not recommended because the stock is not worthy of investing, as it only purchases for a short duration.
Research Your Stock Wishlist:
Traders are advised to add 7 to 10 stocks to their wishlist for in-depth analysis. Knowing about their corporate event like a merger, bond dates, dividend Payments, etc. Using the internet and find there resistance and support level will be beneficial.
Always Move With Market:
Even Experience professionals with advanced analytics tools are not able to predict the market movement. There are times when all technical factors indicate a bull market, however, there still be a decline. These factors only provide indicative not to provide any guarantees. If the market goes against your expectations then exit your position to avoid huge losses.
Intraday Trading provides higher leverage. Which provides a decent profit in one day. There are to many Discount stock Broker that provides Upto 40X Leverage in Intraday (Click here to know about them)
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