You have thousands of securities to pick from as Intraday trading. A day trader’s initial step is to decide what to trade. There are a number of different trading strategies a trader can use, and the right strategy depends on the trader’s personality and how much capital they have to invest.
There are some stocks that are more liquid than others, and the price gaps between the bid and ask prices are smaller.
Step 1: Figure out what to trade. Before you even think about placing a trade, you should focus on determining what you are going to trade. If you are looking at the stock market for the first time, then you might want to take a look at some of the best stocks to buy.
What is Intraday Trading ?
In intraday trading, you need to buy or sell your shares on the day, which you cannot keep for the next day. Securities are not held overnight but are closed before the end of the trading session. This is a unique field and a challenge.
Profits are made for a variety of reasons by traders. One possibility is a long-term investment that is a gradual process but has the potential to yield substantial profits. Another option is to use a short-term plan that involves trading for rapid profits. Intraday trading is one such strategy.
Things to Know:
- Intraday trading is defined as the purchase and sale of equities on the same day, before the market closes. If you don’t, your broker may square your position or convert it to a delivery trade if you don’t.
- Looking at trends and indicators is always good for intraday trading, whether a person is a seasoned trader or a beginner.
How To Start Intraday Trading
To start intraday trading you need to open a Demat account. There are a lot of brokerage companies on the market that you can go with Zerodha or Upstox because they offer you lower opening and brokerage fees.
If you know about day trading, then you are also aware of losses. Yes in intraday trading you need to be prepared for losses.
But if you do proper research on your stock or a company, perhaps you can overcome your losses and make money from the day market.
In the world of the stock market, you do not know about company management, working there, balance sheets, etc. All this basic research cannot be obtained by any online website.
Then the question is how to do intraday trading?
Today I will show you how to work on technical analysis. This technical analysis can help you stay on the intraday market and help you make money.
How to do Stocks Technical Analysis
You know that a lot of investors have said that before you start investing, you need to work on fundamental analysis, get more and more information about the company you want to invest in.
How can you research company management, you need to go to the company? No, not at all.
You can do online research through a website or broker to know the company management work profile.
But it is a long process that you cannot get overall details about the company as to why the company tells you its overall details through any website.
You know about Kingfisher, you can see the Kingfisher chart when people going down the stock are waiting for the stock to rise because they believe Mallya will do something.
You can read the Kingfisher newspaper when Kingfisher shares fall, causing people to wait to rise. But the news comes that after one year he commits fraud with the banks
You already know and you can see the chart continuously falling, then what are you waiting for just sell your stock before it totally falls.
Work on Technical Analysis
I will give you a better example of how to do intraday trading and technical analysis.
You know that the news of Reliance Industries’ Facebook business came in April 2020. I know that everyone knows about that news.
Now you must be wondering why I am telling you about him?
You can see this image when the original Facebook deals with Reliance, at that time you can look at the chart, and now you can see the flow.
On the April price of dependency between 1200 and 1500 and after dealing with Facebook, it rises directly to 2200 that the technical chart results.
The news comes after 15 days but you can see the chart rising before the news.
So just like working on technical analysis charts, you don’t have to worry about fundamental analysis. You cannot get overall details about any company.
Things You Should Know About Starting Intraday Trading
Take a low margin:
Margin is two-way, it can double your money very quickly. And if you make the wrong trade, then the whole money can be lost. Therefore remember that the margin should be taken carefully. If you are new in trading, take a low margin so that your loss is also reduced.
Work on the trend:
Before buying stock intraday, find out the trend of the stock you want to trade. Easily, find out if your stock trend is looking at whether your chart is going up or down or is stable.
When the chart is heading upwards it is time to buy the stock and if it is going down at that time then you can sell but do not panic about the trend it may rise again.
Do not trade too much:
Most investors trade 2 or 3 stocks in a day. But before you start trading, select 4 to 5 stocks in your watchlist so that you can optimize your intraday trading stock. Trade less but well and profitably.
Be Sure to Set Goals and Stop loss:
It is very important to have a fixed target and stop-loss intraday. Stop Loss prevents your damage from increasing and saves the target gain. Therefore, the stop loss and target should be placed immediately after taking the trade.
Sell Your Shares with a Fixed Profit:
Most of the time your share will increase in value, but don’t make a mistake if it gets higher then falls. Just take your profit and invest in another stock.
The best time to trade in the intraday market is before 11 am. After that, the market will not stabilize properly and there is no better way to enter.
If you do not receive a trade by 11 am, many times new trades can be taken up to 1 pm. But after 1 pm, intraday trade should not be taken under any circumstances, as there is a very high probability of loss.
Intraday Trading Rules You Should Know
The trading time starts at 9.15 am and ends at 3.30 pm. In that time you need to buy or sell your shares. If you do not sell your share on that day your share will be converted into delivery stock.
This means that you need to deposit your share in your Demat account but you will have to pay for it. Then after 3 to 4 days, you can sell it.
Intraday trading is a high-risk market. If you can take risks then you should enter the intraday market.
I hope you understand how to do intraday trading. If you have any questions or suggestions for me then you can directly ask me through the comment box I will help you.