Intraday Trading Tips for Beginners to Gain Profit
The world of stock market trading is quite a huge one. There are numerous types of
trading practices including intraday trading, short term trading and long term
trading. Out of these trading strategies, intraday trading is highly fascinating for
many traders. Intraday trading (Day trading) involves buying and selling the
stocks on the same day.
Novice traders easily fall into the trap of intraday trading. After all
who does not want quick earning opportunity? But you must also understand that
the opportunity of losing your money is equally high in day trading.
So you must learn the basics of day
trading before you start to attempt trading. At Indira Trade, we conduct
learning courses for novice traders as well as advanced stock market courses.
You can join us and learn the best Intraday trading strategies and techniques
for gaining success. We offer insightful and proven Intraday trading courses
that can guarantee sure shot profit for the beginners.Read on the blog to know
few of the top intraday trading tips for beginners.
Tips to Make Profit in Intraday Trading
Well Before Buying
trading for profits requires you to research your stocks well before you buy
them. You should have an eye on your favourite
8 to 10 shares and look for price changing events in the company like mergers,
bonus declaration dates, dividend payment, etc. You can research about the
support levels and resistance levels to make an informed decision.
Liquid Large-Cap Shares
trading requires squaring off the open positions before the end of the trading
session. Hence it is advisable to pick shares of good performing companies that
are highly liquid. You may pick large-cap shares instead of mid-size or
small-caps. Large-cap shares are highly liquid because of the high trading
Entry and Target Prices
you actually jump into the market, you must decide upon the entry level (the point at which you want to buy) and target
price (the point at which you want to
sell). This can be done by analysing
charts and technical details. Once you decide upon the entry and exit price, it
is important to stick to your decision. Many
times, people lose the opportunity to earn higher profits because they sell
at a much lower price than their pre decided price for a nominal increase.
best intraday trading tip is to use a stop
loss. Stop loss is an order placed with the stockbroker to buy or sell a stock once it
reaches a certain price. It is designed to limit a trader’s loss if the price shifts opposite to his
expectations. Stop loss ensures that emotions are eliminated and you don’t hold
on to a position in case the price shifts down.
Also read - Importance
of setting stop losses to learn in detail about the
advantages of setting stop loss.
Profit On Hitting The Target Price
Most of the intraday traders get carried away by the upper
price movement. In the greed to earn more, they do not sell their stocks, even
after hitting the target price. This leads to high risks and chances are that
you might carry forward the position to the next day. To avoid such situation,
whenever you think that the stock has a further possibility of rising in price,
you must readjust the stop loss trigger to match your price expectation.
Being an Investor
is a common psychology of traders to take the delivery of shares if their target price is not met. In the
hope of price recovery, they shift from their day trading strategy to short
term trading strategy. However, it is not recommended as the stocks which are
purchased from intraday trading perspective might not be that great from the
Intraday trading provides higher leverage and
decent returns in one day. But if it is not managed properly, it can lead to
losses. So it is imperative to have a good understanding and knowledge of intraday
trading. The above intraday tips will help traders to earn profits from
To learn more about intraday trading strategies,
keep reading our blog
or join Indira Gurukul to learn face to face from our experts.
At Indira Trade, we use fundamental and
technical charts and portfolio watch tools which help to identify trends. This, in turn, helps traders to earn higher
profits from day trading.