10 Best Intraday Trading Tips and Strategies – Spot72.com

10 Best Intraday Trading Tips and Strategies – Spot72.com
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Intraday trading, also known as day trading, is about buying and selling stocks on the same day to order profits. In this market order, you are not planning to take delivery of the stock. – 10 Best Intraday Trading Tips And Strategies.

In other words, if you place an intraday order to buy or sell a stock, you take advantage of the price movement on that particular trading day and hedge your position before the end of the market hour. Intraday traders aim to make quick short term profits.

Many intraday traders do not have a proven day trading strategy. Therefore, they tend to lose their money relying blindly on online tips. What you need is a powerful intraday trading strategy.

Which serves as a day trading guide, not cryptic tips for intraday trading. Here are some free trading plan tips that will help you trade better.

Choose Liquid Shares

What will happen if you want to sell your shares but there are no buyers in the market? As you now know, intraday trading involves buying and selling a set of stocks on the same day before the market close, i.e., squaring open positions. However, in order for the Stock Exchange to execute these orders, there must be sufficient liquidity in the market.

So the first of our free intraday tips for today is to stay away from small and medium stocks which may not be liquid enough. Otherwise, there is a high probability that your squared order may not be executed. Forcing you to accept delivery instead. Liquidity is the most important criterion that you should check before choosing a particular stock to trade.

Stocks with high liquidity trade at a large volume which allows intraday traders to buy or sell larger amounts with ease

Next, avoid investing all of your trading money in one stock. Experts recommend diversifying your intraday positions across several stocks. Diversification will help you balance your intraday trading strategy and minimize your risk.

Freezing Entry And Exit Prices

Have you ever regretted a decision you made immediately after executing it? Many stock investors and traders suffer from buyer error. They fall prey to misleading notions.

This is when the buyer immediately starts having second thoughts and starts doubting their play. The trader suddenly felt that the stock selection was not as good as he had believed when he entered the trading position.

To avoid such trading mistakes, all you need to do is follow the second Free intraday tip to determine entry and exit prices before taking a position. This ensures that you have an objective view. You must know how to strategically plan your entry and exit without letting your emotions rule your decisions.

Always Set a Stop-Loss Level

Let’s say you are an intraday trader. XYZ Ltd is trading at Rs. 550 per share and you expect the share price to rise further today. You guys decide to buy 100 shares of XYZ Ltd by investing Rs. 55,000.

But instead of going up, the price dropped to Rs. 500 per share. Within hours, you incur a total loss of Rs. 5,000 (Rs. 500 x 100 shares). When you invest in stocks, the price of the stock can go up or down. It is very likely that the stock you bought and took a long position fell on the day you traded instead of rising.

Therefore, you must decide how much you are prepared to lose if the trade goes against your position. This acts as a safety net and helps minimize your losses.

Most experts would suggest this is the most important tip for intraday trading you will ever get. Therefore a third free intraday tip is to research intraday calls, which are buy and sell recommendations, and set stop-loss levels.

Stop-losses will help you manage your risk and should be followed by all traders. As the name suggests, it helps you stop your losses. Continuing with the same example, if you have set your stop-loss at Rs. 540, losses will be limited to Rs. 1000 only (Rs. 10 x 100 shares).

Book Profits When Targets Are Reached

Greed is every intraday trader’s enemy. Why you may ask? That’s because it only takes a few minutes for the market to switch sides, especially if the market is too volatile. The secret to successful intraday trading lies in the high leverage and margins that traders enjoy.

Leverage and margin help amplify profits (as well as losses). But the trick lies in not getting greedy once that target is achieved. Don’t wait for the stock price to rise further if you have reached your target price.

Avoid falling into the trap, where you feel that the price will continue to rise (or fall, if you short-sell). You should make your trading decisions based on facts and strategy and not on how you feel the stock will perform. If there is good reason to believe that the price is likely to move in the right direction, then adjust the stop-loss accordingly.

Always Close All Your Open Positions

The fifth free intraday tip for today is to always close all your open positions. Many intraday traders choose to take stock delivery if the stock price target they set at the start of the day is not met.

This may not be a good strategy. After all, stocks are bought for intraday trading basic market trends and technical analysis of stock movements. They may not be good enough for a long term investment.

Imagine what would happen if a top company declared bankruptcy post-market close and the stock opened gaping down the next day. Investors holding stocks at the end of the day may not get a chance to get out of their positions and thus have to take hits on their portfolios.

Meanwhile, for intraday traders, a piece of company-specific information released during the day can be processed on the same day. Intraday traders will have the opportunity to deal with impact information in real-time.

Post market hours, the news will not affect intraday traders as they may already square their positions. This helps us eliminate risk overnight without blocking any capital. So before converting to delivery, take a look at the intraday calls and strength of the stock’s fundamentals.

Don’t Challenge the Market

It is nearly impossible to predict market movements. Often, you may find that all factors point to a bullish market. As usual, you might expect your target stock to increase. But, the market decided to disagree and the share price did not go up.

Bottom line: don’t marry your analysis. Fluctuations are the nature of the stock market. If the market doesn’t support your analysis, sell and exit your position as soon as it reaches your stop-loss level. Holding on to the hope that the market will act the way you expect can increase your losses.

10 Best Intraday Trading Tips And Strategies

Thoroughly Research Company Targets

The seventh free intraday tip for today is-once you’ve identified a set of stocks to trade with via professional intraday calls, be sure to research them thoroughly.

In other words, do your homework! Start by understanding how technical analysis can help you make better trading decisions.

Find out when company events are scheduled. This includes acquisitions, mergers, bonus issues, stock splits, and dividend payments among others. These events can turn out to be as important as they are up-to-date with technical levels.

For example, momentum trading helps traders identify a strong trend in a certain direction and its capacity to sustain itself. – 10 Best Intraday Trading Tips And Strategies.

Watch the video below to understand the core principles of momentum trading where Mr. Prasenjit Biswas (CMT, CFTe-AVP, Research Derivatives) talks about the dynamics of momentum trading, the role of market sentiment, and how to identify trade setups along with the various key variables you should consider.

Time Matters

Profits in intraday trading are highly dependent on the time factor. One of the best intraday trading tips is not to take positions within the first hour of trading for the day.

This is because volatility tends to be high during these hours. This causes a heavy rush and noise in the first market hours which eventually leads to huge price fluctuations. Many experts prefer to take intraday positions between noon and 1 pm.

In short, to make the best of intraday trading, you must first learn how to make the right moves at the right time. The best way to master this skill is to pay attention to details, and try to understand the mood of the market in the morning, afternoon and close to the close.

Choose the Right Platform

The ninth free trading plan tip is to choose the right trading platform. Intraday traders often make many transactions and earn daily profits. Thus, you need to choose the right platform, which allows fast decision making, execution and minimal brokerage fees.

Generally, to carry out intraday trades, intraday trades must be paid by the broker which includes Securities transaction tax (STT), SEBI Arrangement fees, transaction fees, stamp duty and GST on the broker. It may eat up a certain percentage of your intraday profits.

Intraday Trading Strategy

As admin mentioned before, to be a successful intraday trader, you have to be disciplined. What better way to be disciplined than by following the rules? The tenth free intraday tip for successful intraday trading is to follow the rules of intraday trading.

If you are new to trading, then you might just want to skip all the rules and fast-forward to make a profit. We know, intraday trading is thrilling but equally risky at the same time.

You don’t want to lose your money in the first month itself, do you? Therefore, market experts recommend some basic intraday rules for individuals. – 10 Best Intraday Trading Tips And Strategies.

For starters, they generally advise new traders to refrain from buying and selling stocks when the market opens for the day. That’s because the company’s stock usually fluctuates in the first hour of the day.

Second, experts feel that new traders should invest a small amount to test the waters. In order to beat the volatility of the stock market, it is also useful to have a predefined intraday trading strategy and stick to it.

Conclusion

The secret to being a successful intraday trader lies in your temperament. How do you control your emotions and stick to your trading strategy with tactical adjustments when necessary. Once you have mastered your trading game, you may even consider becoming a full-time day trader.

To help you on your trading journey, the admin publishes a regular Morning Trade Talk podcast. Join Shrikant Chouhan, Head of Research, Kotak Securities, every morning before you start your trading day.

And get complete trading strategies for Nifty, Nifty Bank and select stocks from different spaces. And to enjoy zero BROKERAGE on all your intraday trades, you can open your Demat account with Box Securities.

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