7 tips for successful intraday tradingby Pankhudi Dave Head Finance Manager
Intraday trading is riskier than investing in the regular stock market. It is important, generally for beginners to understand the basics of such trading to avoid losses. Individuals are advised to invest only the amount which they can afford without financial difficulties.
Intraday trading involves buying and selling stocks within the same trading day. Here the stocks are purchased, not with the intention to invest, but for the purpose of earning profits by harnessing the movement of stock indices. Hence, the fluctuations in the price of the stocks are harnessed for earning profits from the trading of stocks. Before getting into trading, investors should understand intraday trading, as it will be beneficial for gaining profits.
Some of the Intraday trading tips are listed below:
1. Choose two or three liquid shares
2. Determine the entry and target prices
3. Utilizing stop loss for lower impact
4. Book the profits when the target is reached
5. Avoid being an investor
6. Research the wish list thoroughly
7. Do not move against the market
An online trading account is used for the purpose of intraday trading, while doing intraday trading, an investor will need to specify that the orders are specific for intraday trading. intraday trading meaning is that orders are squared off before the end of the trading day, thus it is named like that. After an investor has understood the basics of intraday trading, investors can begin with the process of investing. Intraday trading is riskier than investing in regular stock market. It is important for the beginners to understand the basics of the trading so investors can avoid losses. Individuals are advised to invest only the amount they can afford to lose without facing any type of difficulties.
Investors who have opted for intraday trading are rewarded with a lot of advantages, like an investor will be provided with high margins which are available to traders compared to investors, a high return potential, low brokerage charges, mostly with a free intraday trading option and a short-to-medium horizon for strategies to pay off. With intraday trading an investor will be able to sell order and offset their buy order.
Only investors who can take the risk, follow market closely and time the trades. Intraday trading promises high returns and thus may sound attractive. But they are also carry a high risk compared to the delivery segment. So, if an individual has a day job which requires an individual’s full attention for most of the trading hours, an individual should not go for intraday trading.
Observing the market is a necessity for gaining good profits with intraday trading. An individual will need to trade in the intraday segment using the right broker, one who offers an individual with the research support as well as technical support. Having the right tools is important for increasing the intraday trades. With the high number of transactions, it is important for an individual to choose an account with low brokerage per transaction and speedy execution.
Created on Jul 15th 2019 02:30. Viewed 88 times.
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