Intraday trading tips

Posted by smartadmin on

Investing in a regular stock market is safer than intraday trading. Understanding the fundamentals of intraday trading is vital, especially for first timers to prevent losses. It’s advisable as a trader not to invest the amount you can’t afford to lose – only invest what you can lose without going through financial troubles. You can learn how to trade by following a few intraday trading tips.

Intraday trading indicators

Posted by smartadmin on

Doing your homework/research is vital if you want to make profits in intraday trading. And you also need certainindicators when it comes to booking profits. Many may see intraday trading tips as the Holy Grail; however, you can’t depend on it completely because it’s not 100% accurate. You will only benefit more from intraday trading indicators when combined with an extensive strategy to maximize returns.

How can I make profits in intraday trading?

Posted by smartadmin on

As an intraday trader, you are always prone to risks in the stock markets. Volatility in price and daily volume are among the factors that play a significant role in the stocks selected for daily trading. To manage risk effectively, traders must not risk more than 2% of their total trading capital on one trade.

Intraday time analysis

Posted by smartadmin on

In intraday trading, daily charts are frequently used by traders; this chart represents the movements of price on a one-day interval. Using charts is also a common technique in intraday trading,and it helps in illustrating price movements when the trading market opens and closes. There are other ways intraday charts are used for trading.

Choosing stocks for intraday trading

Posted by smartadmin on

Knowing how to choose stocks for intraday trading is crucial if you want to be a successful intraday trader. The reason why people usually lose while trading is because they select the wrong stocks to trade. Selecting the right stocks to make a profit is a skill you can develop with experience. As a beginner, check our tips on selecting the right stock for intraday trading.

Go for a few liquid shares

Posted by smartadmin on

In intraday trading, you have to square open positions before the trading session comes to an end. Therefore, it is advisable you select a few large-cap shares that are highly liquid. Investing in small-caps or mid-size will result in the investor holding these shares due to low trading volumes.

Identify entry and target prices

Posted by smartadmin on

It is important you know the entry level and target price before you place an order. Its normal for your mindset to change when you have purchased the shares. Thus, you may want to sell when there is a minor increase in price, and as a result, you may lose the chance of capitalizing on higher gains due to an increase in price.

Making use of stop-loss for lower impact

Posted by smartadmin on

Stop loss serves as a trigger that automatically sells your shares when the price drops below a specified limit. This is useful because it helps limit potential loss for traders when stock prices fall. For investors utilizing short-selling, the stop loss minimizes loss if the price increases above their expectations. Stop loss is an intraday trading technique that helps in eliminating emotions when you make decisions.

Book your profits when you reach your target

Posted by smartadmin on

Fear or greed is one of the reasons a lot of traders suffer. As an investor, it is important you reduce your losses and also book profits once you reach the target price. If the trader feels there is a tendency for the stock price to rise, then the person must readjust the stop loss trigger to suit this expectation.

Don’t be an investor

Posted by smartadmin on

You are required to buy shares in intraday trading, as well as to invest. Nevertheless, their factors differ from each other. One relies on the technical details while the other adopts the fundamentals. It is normal for intraday traders to take share deliveries if they don’t meet the target price. The individual then waits to earn his or her money back when the price recovers. This is not advisable because it may not be worth investing in such stock since it was bought just for a shorter period.

Note: do not convert your intraday position into delivery trade or positional trade.