Learn the Basics of Intraday Trading For Earning Profits


Stock market is highly volatile, so trading can be very risky, but with some smart moves, quick money can be earned. New traders look for answers on how to earn money from stock market investments. The trader can easily take advantage of this high market volatility to earn a profit. On the other hand, they also need to be prepared for losses.

What is intraday trading?

New traders can start with intraday trading. So, what is intraday training? Intraday trading means buying or selling shares on the same day. An intraday trader square off their position, before the stock market closes, which is 3:10 pm. It means specific stocks bought need to be sold and vice versa on the same day. If you don’t do it, the transaction gets squared off automatically.

The right decision of buying or selling is taken on Technical Chart analysis based on time intervals like 1, 5, 15, 30, and 60 minutes. A new trader will need to get familiar with their affordability to lose, before they enter intraday trading.

The stock market has to be monitored consistently or they can lose. Many strategies can be applied to mitigate the losses like a stop-loss strategy, where a price is set, and the stock performs below that level you sell it to limit the loss.

Intraday trading is not a get rich overnight program. The majority of traders begin trading with the hope to earn profits on a single trade. It is practically impossible! If you desire to be a successful intraday trader then a learning curve, dedication, discipline, and patience is needed. Understanding how the market plays needs efforts for months before you even think about generating good profits.

Crucial tips for success in intraday trading

Choose highly liquid shares

A share you choose must be easy to sell, at any time. If you have no buyers, then you can experience a loss. It is a crucial aspect of intraday trading.

Choose shares with good trading volume

Stock having a good trading volume indicates a high number of interested traders. It enables you to sell or buy such stocks with ease.

Stay updated

Stock markets are consistently fluctuating, so you need to be familiar with the happenings or else you can experience a loss. If you are not in the habit of reading news associated with the stock market then it is time to start!

Use the loss mitigation strategy

A Stop-loss strategy is very useful in preventing losses during high volatility situation. You can reduce your losses with stop loss in place.

Before trading perform an analysis

Technical and fundamental analysis is crucial about the stock you are interested in before trading.

Control your emotions

A trader needs to control their emotions associated with anxiety and loss. Greed is another emotion that can trigger losses.

Intraday trading is one of the most complex trading methods in the Indian stock market. Open online demat account to get support and expertise from online trading companies and invest making informed decisions.