Which indicator is more suitable for intraday trading?

Posted by smartadmin on

Some useful indicators for intraday trading include:

  • Moving averages- Most traders are familiar with the daily moving averages (DMA), this is indicator is very common and widely used.
  • Bollinger bands- This indicator for intraday trade is a step ahead of the moving average.
  • Momentum oscillators
  • Relative Strength Index (RSI)

How profitable is intraday trading?

Posted by smartadmin on

With intense research and trade experience, making profits in intraday trading is possible. Ideally, intraday traders are advised not to risk above 5% of their total trading wealth in a single trade. Instead, they should invest in multiple trades to minimize risk and reduce losing money.

Meaning of stop loss order

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Basically, a stop-loss order is an automatic trade order issued by an investor to a brokerage; this order is only executed when the stock price in questions drops to the specified stop price stated in the stop-loss order issued by the investor. An order of this nature is designed to minimize loss or risk on a position in a security.

Meaning of delivery based trading

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Intraday trading refers to buying and selling stocks within the same trading day. Delivery trading, on the other hand, is when you buy shares and keep them overnight, and then take delivery of the shares. Most brokers usually charge higher brokerage on Delivery trades compared to intraday trades.

How to be successful in intraday trading?

Posted by smartadmin on

A bit of good advice is to trade following the latest or current market tendency. Sell first and buy later if the market is on the downside, and vice versa. Make sure you develop a plan for intraday trade and stick to it. Set up a desired profit and stop-loss limit.

Finding best intraday stock

  • Avoid high volatile stocks
  • Observe the market trend before you decide on which stock is right
  • Trade in liquid stocks only
  • Trade in good correlation stocks
  • Ensure you research, and select the stock you are most satisfied in afterward.