Some Profitable Intraday Trading Tips for newbie traders
Intraday Trading is a method of trading in the stock market in which the stocks are bought and sold on the same trading day itself. Intraday trading allows the trader to gain profits from any direction irrespective of whether the market is falling or rising. This is because intraday trading is for short selling and not long term investment. There is no risk of overnight associated with intraday trading because the stocks are squared off before the market closes for the day. There are many other benefits of intraday trading. However, there are some Intraday Trading Tips which a new player must be aware of to reap maximum profits.
Monitor the market movements
The HQBroker Review trader monitor the market movements throughout the trading day in order to take the correct decisions. Thus, intraday trading is not recommended for people having a full time job.
The best stocks for intraday trading can be chosen only after getting a thorough understanding of the various features of stocks. The best way is to trade a single stock initially in order to get familiar with the characteristics of the stocks along with the market trends and risks. This helps in picking up the best stocks in the subsequent trading sessions.
It is important to stay updated about the latest stock market news and other events which may affect the stocks. Information can be obtained from financial websites and business newspapers. Making a list of 8-10 stocks and obtaining information about them is also a good strategy for intraday trading.
Use stop loss
Stop loss automatically sells the shares when the price falls below a fixed limit. Using it helps traders in preventing losses.
Apart from the implementing the above mentioned Intraday Trading Tips, some mistakes must also be avoided. They have been listed here.
- Trading should not be done against market trend.
- It is not advisable to trade just after a major news hits the market.
- The intraday trader should not risk more than 1% of the capital in a single trade.