Intraday refers to “within the day.” The term Intraday trading is shorthand used to describe buying and selling of stocks on the same day, that trade on the markets during regular business hours with the intention of booking profits in a day. To start Intraday trading in Indian stock market you must know the psychology behind rising and falling markets. Capturing favourable price movements in a disciplined manner will help you make money in day trading.
From the expert points of view Intraday trading can be quite risky but one can act smartly to earn some quick bucks. . Every day, the price of a security fluctuates and an Intraday trader profits from this rise or drop of price which offers huge returns.
For doing Intraday a person requires a Trading Account and a linked bank account. Stockbrokers also provide you the option of a Demat account so that you can invest long term in stocks.
Trading Account: A trading account can be any investment account just like any other brokerage account containing securities, cash, or other holdings and it is also referred as a day trader’s primary account. a trading account is different from other investment accounts due to the level of activity, purpose of that activity and the risk it involves.
Demat Accounts: A Demat Account is a bit like a bank account used to hold shares and securities in electronic format. The full form of Demat account is a dematerialised account and makes the process of making share trading easy for the users during online trading.
These Demat and Trading accounts are necessary as they help you to access the stock market for stock investing and trading. Moreover, demat accounts will be helpful in holding stocks in case you are not able to square off a buy position for any reason.
Below are some of the top 5 Intraday trading tips:
Identify Strong Stock Trend
Identify Strong Stock Trend is a bit difficult job in stock market. Any poor judgement can lead to huge losses. You should participate in Intraday Trading only if you identify stock with a strong trend. Futures and Options, Price Movement, Stock Volatility, Delivery percentage, Pivot Points, Delivery quantity, Volume, Open Price for the day etc,. are some of the indicators that will help you to determine stock trend.
Have a proper strategy
Have a proper strategy is most important of all tips on day trading. Put real money on the line until you have a plan of action will result in heading for an expensive slaughter. It is advised to trade in stocks only after knowing how much amount you can use for trading purpose and how much you can afford to lose. This also includes knowing what you’re buying and selling, how much you’re going to trade and when you’re going to trade it.
Use stop loss and other methods that help you in risk management strategy. This will ensure you only lose what you can afford, without which, your loss may be high.
Never stop learning and Be updated
The successful trader never sits on his laurels, he’s always of reading more about trading strategies, free intraday tips, etc. to become an expert trader. Staying up to date with the news, trading books, and staying tuned into emerging schools of thought will make help to take a smarter decision.
Don’t concentrate on the money
Intraday Trading requires continuous research, smart decision making and facts. Having money at the forefront of your mind could make you do reckless things, like losing what you’ve already won. Instead, focus on sticking to your strategy and let your strategy focus on making you money.