If you want to earn profits in Intraday trading, First learn more about stock market basics, fundamental , technical analysis like many more.. with out having proper knowledge in stock market, don’t do Intraday Trading.
Most of the people enter in to share market to earn good profits on daily basis but they fail to do so and there are two primary reasons and those are lack of
- Knowledge
- Experience
Share market interchange on daily basis is governed by lot of national and international factors and that is ahead of anybody’s control, so it is complicated to gauge the market movement on daily basis, so sensible and experienced trader try to earn money on monthly basis and not on daily basis.
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Intraday Trading is thrilling , when you start making predictable profit ,but there is nothing to assurance your profit, as there are many challenges in Intraday trading to be tackled in smart way to accomplish your expected result.
Markets are always right, no one can carp about it. It can move in any direction during the market hours so it is difficult to grab hold of market all time , so it is quite possible for trader to make losses.
Losses can even occur due to your own mistake like,
- Not able to empathize specific share movements
- Not in a proper state of mind to do trading
- Sometimes markets moves up down in very narrow range then it becomes difficult to trade and book profit and at the same time it is also possible that you may lose your patience and start doing wrong trades.
- To avoid losses and to gain confidence start by paper trading practice and generate profits and then plan to switch to real day trading.
- Stay away from greed like making huge profits in a single day, this is only possible for experience traders and only after spending years and years in the share market.
- Doing over trading is risky and you may end up in losses.
- Take small profits and do multiple trades, basically it has been observed that many times traders lose money due lack of knowledge
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Intraday Strategy:
- Avoid chasing a stock and buy when the market is in the grip of panic
- Try to invest only in the fundamentally strong stocks and that are undervalued
- Try to avoid loss - making companies and look for dividend paying record
- Try to invest a fixed amount every month on the stock
- Try to buy when everyone is selling and sell when other traders buy.
- When the market is low and if there is not external factors disturbing ,then it will rise , therefore you can consider this marketing condition.
- The best time to invest is when the market is down, however you must remember the fundamentals to avoid risks.
- Avoid carrying positions overnight
- You must be aware that the stop loss serves as an essential risk control mechanism therefore it must be always readily available for the trader.
- Everyone is aware of the fact that trading involves considerable risks in it. Every trader must trade at his own risk and comfort . Moreover you must also be aware that the analyst will not be responsible in any terms of your loss.
Golden Rule of Intraday trade is rid with the trend, hence the first step to make profit in intraday trade is to identify the stock. Intraday charts are the best way to identify stocks for trading intraday. Also one should make a good home work before entering in Intraday trade. Home work means , study the historical charts and find out the upward or downward moving stocks . Then see the previous days intraday chart. Find out the support and resistance levels, The better strategy will be buy at previous days support level and short at previous days resistance levels. Also shorting below support level and buying above resistance level are good ideas.
- Understand day trading
- Understanding that profits and losses are a part of intraday trading
- Have a practical approach
- Reduce your losses.