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Thinking About Venturing Into Intraday Trading – This Is The Guide You Need To Read

by Pankhudi Dave Head Finance Manager
Market investments are a lucrative opportunity to earn a surplus income and eventually create a decent surplus. It takes great discipline and research to create a fund through the market. As experience increases in share trading, one becomes confident that they can take on the intra-day market too. But intraday trading is a tricky business and perhaps, not for every investor. You cannot enter this market until you have some tips and tricks up your sleeve. So if you’re contemplating to start trading intra-day, this is the guide you need to read.

The easy intra-day trading guide

Here are a few things you should do to go from amateur to expert in day trades:

•    Formulate a strategy
Strategy is everything in the daily trading world. Creating proper intraday trading strategies is important because trades are done in order to make rapid profits based on the movement of prices. Start with a basic strategy and decide how much you can invest for trading and how much you can stand to lose. Do your research and make all investment decisions accordingly.

•    Think risk-management
Managing risk is of the essence while conducting day-trades. It is not something you should decide in the spur of the moment, depending on how your scripts are performing. It takes but a second, for the price of a stock to fall drastically. So, you need to think about risk management and use the stop/loss method. Without this strategy you would be exposing your investments to high risks.

•    Trading shouldn’t revolve around money
Contrary as it may sound; money cannot and should not be the centre of your attention during day trading. Any investor who’s either too scared to lose money or too greedy to make it is heading on a dangerous path, where losses are inevitable. Instead of worrying about losing money or being overcome by greed to make more, try to focus on creating strategies to mitigate risks.

•    Press pause on the panic button
Panicking is an emotion that has no place in day-trades. It makes things worse, dissuading you from venturing into day-trade again. Instead of panicking, take losses in your stride, and remember that it part of the game. Concentrate on converting your losses into profits and be patient in your endeavour. Choose to analyse and rectify your mistakes instead of exiting the market.

•    Remember the three R’s of day trading
Read, research and review is a simple, three-point intra-day trading strategy to remember. Always be on the top of your investments. Keep yourself updated with the varying market trends and technologies. Make it a habit to read up all the data you can about day trading, research the information at hand and review your investments from time to time.

•    Less is more
When it comes to day-trading, there is absolutely no need to be a ‘Jack-of-all’. Don’t invest in too many, different stocks and remember the less is more formula. Concentrate on a few, chosen stocks and assess their technical charts regularly to understand price movements.

•    Turn a deaf ear to rumours
Trading based on rumours is a dangerous territory to venture into. Every decision you make should be backed by facts, numbers and data, not rumours. You can stand to lose a lot of money if you focus on rumours.

Final thoughts: There is no denying that day trades can be rather stressful. You need to have a strong appetite, mental prowess and simple intra-day trading tips to conduct these trades. But if you stick to your guns and follow the right strategies, daily trading can be exciting, fun and extremely profitable.

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About Pankhudi Dave Freshman   Head Finance Manager

9 connections, 0 recommendations, 46 honor points.
Joined APSense since, July 2nd, 2019, From Mumbai, India.

Created on Dec 4th 2019 03:39. Viewed 276 times.

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