Intraday Trading

Guide for Beginners : Intraday Trading

Intraday is defined as "within the day". Intraday trading is when stocks and ETFs are traded during regular trading hours in a single day. It is possible to buy and sell shares quickly without the need for physical certificates. Intraday trading is based on price movement. When the price falls, you buy shares and then sell them as soon as it rises. The profit earned is the difference between the rates.

Many beginners are confused about the best tools and trading account to use for trading. 

To identify intraday price movements, traders use real-time charts. There are many other tools available to help you make your first trades profitable, in addition to price monitoring.

This guide will show you how to make intraday trading profitable.

  • Intraday Trading at the Ideal Time.
  • Stocks to choose after historical research.
  • Set a target.
  • Choose the intraday market direction.

Trade Intraday at the Perfect Time

A great tip for intraday trade is to trade according to the current intraday trend. This allows for low-risk entry and higher profits if the trend continues. These patterns can be used to create stop-loss and entry strategies. An intraday trade strategy should have exit and entry signals. When to enter a position and when you should withdraw. After the entry signal has been generated, it is time to decide the exit position. Either you have made your maximum profit or lost the maximum amount, then you can exit. It is best to close the trade once you have achieved the desired profit. It is important to set stop-loss and profit targets prior to entering a trade. You should not allow impulsive behavior to take over.

After Historical Research, Select Stocks

Intraday Trading's main purpose should be to develop the best stock-picking strategy that protects capital while also controls risk. Begin by trading one stock to learn about the trends, characteristics and risks that it presents. You will be able to identify the top-performing stocks once you have an understanding of their behavior.
You should choose liquid stocks. Stocks with high average daily volumes are highly liquid. These stocks can be bought and sold in sufficient volumes without causing much impact on prices--additionally, trade in stocks that have a reasonable correlation with major indices and sectors. Avoid volatile stocks that can trade in an unpredictable manner.

Set a pre-defined target

Trading may be difficult for new traders. They may lose sight of the potential to make a profit and feel discouraged. To take advantage of the many opportunities offered by the Stock Market, it is essential to create a day trading strategy. To take advantage of these opportunities, beginners need to learn how to trade. To limit your loss potential and avoid being greedy, set profit and stop-loss prices targets before you start trading. You should also be disciplined when trading. Do not let your impulsiveness get the best of you. Stick to your day trading plan, and you won't get rich from one trade.

Choose the Intraday market Direction

The 'value area' is a way to pick an intraday direction in the market. The value area is where nearly 70% of trades occurred on the previous day. The market can fill the value area if it opens below or above the area and stays in the area for more than two hours. This parameter is used to gauge the direction of the market. Trading can become profitable once you are familiar with the value area concept and the 80% rule.

You should enter a shorter position closer to the top of your value area if the market opens at a higher level than the value zone. The same applies to a market that opens at a lower value than the value region. If this happens, you should enter a long-term position towards its bottom.

What is Intraday Trading?

Tips And Strategies for Intraday Trading

How to Choose Stocks for Intraday?

Time Period Analysis of Intraday Trading

Indicators for Intraday Trading

Orders & Types Of Orders

How does Intraday Trading Functions?

Calculating Stop Loss

How to Earn Money In Intraday Trading?

Making Profit In Intraday

Using Open Interest for Intraday Trading

Choosing The Best Time Frame for Intraday

Equity delivery Definition

How to do Intraday Option Trading on Bank Nifty?

How to Start Intraday Trading?

Using Pivot Point in Intraday Trading

Difference Between Trading and Investing

Everything on Short Term Trading

Strategy for Stop Loss

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