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How To Enter And Exit In Intraday Trading July 29 2017Stock Market Trading

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How To Enter And Exit In Intraday Trading ?

Intraday trading, also called day trading, is one of the most common yet aggressive types on trading in the market. Those seeking for higher Return on Investments (ROI) practice day trading. Here, the stocks are bought and sold within the stipulated trading hours in a given day. Stocks are purchased and sold off in huge quantities to gain advantage of profits at the daily closing of a stock market. Squaring off sales to purchases or purchases to sales is the way to pursue intraday trading in Indian share market.

Being a high risk type of trading, it is advised to go with the market flow, i.e. if the market trend shows a rise, start with a purchase and sell at the end of the day. If the market is at a state of decline, sell first and then purchase at the end of the day. An important lesson is to know how to enter and exit in intraday trading. Another reminder is to always set stop loss limit and never to be greedy with your profits. The key to success in Intraday Trading is to have a plan and always stick to it. If you’re new to this, try researching proven and profitable trading strategies.

Mentioned below are a few helpful notes regarding how to enter and exit intraday trading:

Entering a Day Trading Market

Identify the tone set for the day in the market and go with the flow while investing. Being in sync with the market trends will help you reap more profits. While investing, keep in mind about a few criteria such as entry price range, knowing what type of stocks to pick, how much risk you are willing to take, etc. Always have investments lined up in ways to recover losses in case one of the purchases or sales does not work out. Also, set a limit of profits to be achieved during the day. Set achievable limits and not unrealistic ones. Expect the market to have a few bumps on the road since it is not entirely predictable. Being cautious while jumping is a good step for new traders, who should start with buying in and selling out small.

Exiting a Day Trading Market

One of the most common mistakes made by traders is their concentration being partial towards purchasing opportunities. Not knowing how or when to leave gracefully can turn what was going to be a very profitable day into a 180 degree flip-story. There are at least two exit strategies for you, and they are exiting once your profit goal is achieved or trying to minimize your loss on a bad day. The key to successful intraday trading is not to be greedy about your returns. If you have gained your desired profits for the day, leave. Use a part of the gains to settle losses of the other stocks. In case things aren’t working out well for you in a given day, know how to use stop-loss and exit the market without suffering further damage.

Conclusion

Having a game plan for trading is a very important aspect of being a successful intraday trader. No matter what, keep yourself calm and composed. Losing your wits and becoming emotional during a trade is not going to be beneficial, but knowing your definite entry and exit points will surely help. Once you gain enough experience, these little things will be as good as breathing instinct to you. Trading is all about consistent practice, after all. ”. 

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1. Stock Brokers can accept securities as margin from clients only by way of pledge in the depository system w.e.f. September 1, 2020.

2. Update your Mobile Number & Email Id with your Stock Broker/ Depository Participant and receive OTP directly from Depository on your Email Id and/ or Mobile Number to create pledge.

3. Pay 20% upfront margin of the transaction value to trade in cash market segment.

4. Investors may please refer to the Exchange's Frequently Asked Questions (FAQs) issued by NSE vide. Circular No. NSE/INSP/45191 dated: July 31, 2020 and NSE/INSP/45534 and BSE vide Notice No. 20200731-7, dated: July 31, 2020 and 20200831- 45 dated: August 31, 2020 and dated: August 31, 2020 and other guidelines issued from time to time in this regard.

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6. Risk disclosures RISK DISCLOSURES ON DERIVATIVES:

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  • Over and above the net trading losses incurred, loss makers expended an additional 28% of net trading losses as transaction costs.
  • Those making net trading profits, incurred between 15% to 50% of such profits as transaction cost

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