While intraday trading can help you make healthy profits, it is riskier than traditional stock market trading. Things can become even more challenging when you are new to stock trading.
Besides other elements, the time limitation is the critical factor that makes day trading look difficult. In this piece, I share some intraday trading tips to help you perform stock market trading intelligently.
10 Trading Tips for Intraday
Tip # 1 Choose multiple liquid shares
The selection of large-capped liquid shares is crucial for intraday traders. However, since small or medium cap stocks often come with lower trading volumes, it can become difficult for traders to sell them within the same day. Therefore, avoid investing your stake in less liquid stocks.
Tip # 2 Have a clear trading strategy
Traders need to determine entry points and target prices well before entering a position. Doing so will help them stick to the initial plan and have an objective trading approach.
Tip # 3 Never trade without a stop loss
It isn’t strange for shares to lose their value on the same day you buy them. Therefore, incorporating a stop loss can help you limit your risk exposure. Factually, a 3:1 reward-to-risk ratio strategy works best in stock trading.
Tip # 4 Book your profits once the target price is achieved
It is usual for traders to feel instigated with fear or greed at times. Therefore, traders must close positions after the target price is achieved. It is always wise to book your profits even if you believe that the stock can rise further. On the other hand, a position must not be closed before the target price. There is a saying famous in trading, “plan the trade and then trade the plan.”
Tip # 5 Focus on fewer stocks
Traders usually analyze charts for each of the stocks they trade. However, staking their interest in too many shares can require them to put in more effort. Resultantly, there is a chance for them to become distracted. Therefore, always select fewer stocks and then focus on them heartedly.
Tip # 6 Remain abreast of the market
Keeping yourself updated with the latest industry trends and developments is crucial. Try reading expert opinions and economists’ forecasts as much as possible.
Tip # 7 Keep yourself calm
It is easy for traders to panic at times. More specifically, when you start losing trades in a row. However, losing trades is part of a trader’s life. Indeed, you can’t always have good days. Therefore, instead of getting bothered, try to keep control of your nerves and stay relaxed. Learn from your mistakes and avoid repeating them.
Tip # 8 Don’t pay heed to rumors
Always trade the facts. Your trading activity must have some logic behind it. Trading rumors can be a regretful decision. Therefore, carefully analyze the facts and do proper research before you enter or exit a trade.
Tip # 9 Use smartphones
The advent of technology has eased the way people used to trade stocks. You don’t need to sit in front of a PC all the time. Instead, a mobile phone can help you access the market anytime, anywhere. Besides placing orders, managing your product portfolio becomes excessively convenient with mobile trading platforms.
Tip # 10 Devote yourself
Intraday trading requires you to have a lot of market knowledge and profound trading experience. Undoubtedly, you can’t expect to start making money overnight. Therefore, you should spare some time for research and practice. Use demo accounts to learn critical trading skills and try multiple trading strategies. Believe it or not, you must burn your blood to succeed.
Intraday trading in India can be an excellent source of passive income for consistent Forex traders. It’s more about seeking small profit opportunities in multiple trades than making a huge profit in one go. The right attitude and realistic approach accompanying the above tips will help you make your day for sure.