Intraday Trading, as the name suggests means closing your positions same day irrespective and profit or loss incurred. This kind of trading involves trading in securities like shares, derivatives or commodities and exiting from trade before closing of market. Since we carry nothing at home so it seems attractive for regular income if one is able to implement some strategy on daily basis. Here, we at Share Tips are presenting you the top 10 Intraday Tips which will be helpful for you in day trading.
- Availability of Time Since day trading requires lot of attention at all times so a day trader needs to sit in front of terminal till his positions are open. Market securities are highly volatile in nature and give remarkable moves suddenly so one need to keep strong eye on them. This trading has tremendous profits to offer to people who can dedicate themselves with a lot of risk-taking abilities and decisiveness.
- Choose High Liquid Scrips Before deciding a scrip for intraday trading ensure that it is sufficiently liquid and exit poses no difficulty in terms of liquidity. Preference should be given to those stocks which trade with high volumes and trades can be executed with very less spread. If trading volumes are less then one is unable to exit at expected price and ends in losses.
- Identify and Follow the Trend Always remember trend is our best friend in stock markets. If market is negative do not long your positions and similarly if market is bullish, do not make short positions. Also make sure to put suitable stop loss while placing trades. How much Stop Loss should be placed ? It varies from script to script, it comes with experience.
- Timing Entry and Exit Profits can be maximized by right entry and right exit points. Always stay away from emotions of greed and fear because one it can lead to loss of hard earned money. It becomes necessary to book pre decided profit/loss to avoid extreme losses in stock market. Never demand more than your targets and leave terminal once in good profit.
- Trading Methodology When we sit in front of terminal, we should have strategy in our mind for trading. We should have exact figures in mind if what will I do if stock/scrip crosses a certain price. This strategy may be a learnt strategy experimentally tested by some experienced trader or you may create your own doing mistakes and learning through them. Buy all this requires time and a lot of patience.
