Intraday trading is the trade of the stock market which is best for the investors of the short-term investment. Moreover, with the help of some online trading apps a person can also buy and sell the shares on the same day and all the transactions can be done without any effort.
Due to doubts, fear, lack of confidence and knowledge many beginners hesitate to trade in the stock market but they can also invest money effectively in intraday trading by following all the important tips of intraday trading.
Intraday Trading Tips for Beginners
Intraday trading is not that easy as it looks. It requires lots of discipline to start the journey as a day-trader. It is a risk-associated investment as compared to the regular stock market. However, it is a good option for beginners who have advanced knowledge of the stocks and the risk appetite is also high then it will be easy to invest in Intraday trading.
The important Intraday trading tips for beginners are mentioned below which an investor should keep in mind while investing. Let’s have a look at these tips.
- Shortlist your Intraday trading stocks: it is important to choose liquid stocks such as the shares of large-cap companies as these stocks are always in high demand. It will also be easier for the investor to buy or sell before the market closes. Many traders shortlisted 8-10 items of stocks across the segment and sectors which they follow closely to recognize patterns and trends which can be capitalized.
- Know when to Enter a Trade: the risk of volatility is seen in the heavy activity in the opening hours that’s why the experts suggest that before making any move a trader has to wait at least 30 minutes. Therefore, it is better to plan the entry point, follow the particular stocks and figure out the right time to enter into a position.
- Develop a Clear Exit Policy: it is also important to know that while entering a trade is also recognized when to exit it. Hence, the experts advised to set a stop-loss target as if the stock price moves against the investor, the losses minimized and the trade will be closed whereas if the trader should set the profit target as well which allows him to choose the position and collect profit when the specified target is met which also prevents for waiting too long for the further gains which never arrives.
- Have a Plan, But Be Flexible: the trader should always be prepared for the unpredictable movement of the market if the market does not move in the way the investor expected then he can avoid the temptation to wait for the movement of the market in the favor of the investor and can exit to any open position.
- Know the Intraday Thumb Rules: if the trader is new to Intraday trading then they can start with one or two trades per day. remember that before the closing hours he should close all the open positions. use the intraday chart to spot trends and reversals.
- Watch Research-Based Tips: many traders provide intraday trading tips and stock recommendations based on research highlight specific stocks with entry points and stop-loss targets which may be helpful for beginners.
5 things to Remember
The investor should remember the following points while intraday trading.
- Never trade when the market goes volatile.
- Do not invest without taking the help of the stop loss.
- Always avoid the lure tips on intraday trading for beginners in India.
- It is imperative to know when to buy or sell or stay away from the stock market.
- Read the latest reports of the companies such as the company’s revenue, position, and market status before opting.