Intraday trading is defined as the buying and selling of shares within the same trading day. Stock traders who open and close a position in a security in the same trading day are known as intra-day traders. In intraday trading, you can sell shares within seconds, minutes, and hours after you buy them. Also remember, if you sell those shares that were purchased on the previous trading day, those will not be considered as a part of intraday trading. In fact, intraday trading gives you good profits when you trade perfectly, but can also lead to losses, if you don't trade properly. Therefore, here are the few
intraday tips that will help investors in trading wisely:
1- Must determine entry and target prices: An investor should always determine its entry level and target price before placing the buy order. Because your psychology might change after purchasing the shares. Thus, you may sell them even if the price sees a normal increase.
2- Research your wish list properly: Investors should choose at least eight to ten shares in their wish list and research them thoroughly. Also, it is important to know corporate events like stock splits, mergers, bonus dates, dividend payments, etc. along with their technical levels. In addition, using internet will also be helpful in order to find resistance and support levels.
3- Do not move against the market: Even experienced professionals who have all the advanced tools are not able to predict the market. Thus, if the market moves against your expectations, then it is important to exit the position in order to avoid huge losses.
4- Try to choose two or three liquid shares: Investing in mid-cap or small-cap shares can result in the investors having to hold these shares due to low trading volume. Thus, it is always recommended to choose two or three large-cap shares that are liquid.
5- Book profits once the target is reached: Most of the traders suffer from greed or fear. Thus, it is important for traders to not just cut the losses, but also to book the profits once the target has been reached.
Traders can now start
online trading while keeping these points in mind.