Intraday trading is the process of making money throughout the day by trading financial instruments within the same trading session. It’s basically short-term trading where you buy and sell products within a day. Intraday trading is all about going from one day to another without a gap. It allows share market advisor to take advantage of the fluctuations in the prices of stocks, indices, commodities and financial instruments during a single day.
In addition, it gives the trader the opportunity to close positions at any time before the end of the trading session. Intraday trading gives the trader flexibility and control over trade execution, speed and choice with which you would like to enter into or exit from a particular trade.
Even if you’ve never read a finance book in your life, by the time you finish reading this article, you’ll feel comfortable and up-to-speed with intraday trading. If anything, these steps are only meant to get your feet wet and may even lead you to doing more research for yourself on how you can get started in the world of online trading.
What is Intraday Trading?
When you invest in stock market, you usually aim to gain profits that come up to thousands of dollars. For beginner traders, it’s always wanted to seek the quick way to make a profit. You can find the way by day trading which means buying and selling the same security on the same day.
How to select stock for trading?
Many factors go into selecting a stock for trading. Some of the factors include company fundamentals, industry trends, investor sentiment and technical analysis. You can even take advice from best intraday advisor in india.
In selecting stocks for trading, several factors must be considered. Many people prefer investing in stable companies. Stocks usually experience highs and lows when they are traded on the market. It is quite important that you determine whether a certain stock will rise or fall within the next few days.
Trading Strategies for Beginners
Have you heard the saying ‘a strategy is not a strategy until it has been tested in the market?” There are two reasons why we love this quote by George Soros. Firstly, all too often we hear people say that they love something because that is what they have always done. Secondly, people often hear an idea and then want to try it without any prior practice or preparation. The previous statement means that if you do not invest some time into figuring out how to implement your new trading strategy, then it will never work when you are ready to place trades in the real world.
We get excited about trading strategies for beginners because when you start to learn about the basics of trading, many people skip over the importance of developing a sound trading strategy. This can be detrimental for novice traders – even if you become an expert trader with years of experience, you need to set yourself up for success in the beginning.
1. Start small.
Don’t go into this with the notion that you are going to make a fortune overnight, or even the next month. Don’t get into trader psychology and start thinking you can predict when markets will rise or fall.
Small amounts of money will give you the chance to learn how the market is working, how to analyze the charts, and how the money flows are controlled by market forces and therefore predictable.
2. Avoid Penny Stocks
Penny stocks are risky, unpredictable, and difficult to manage. Why? Because you never know how close they are nearing their “Penny Peak” and therefore whether it would be dangerously close to a crash.
If a crash happens while you’re holding shares, it could cost you a ton of money (and maybe even your entire portfolio). Penny stocks are something that you want to avoid at all costs, especially if you are a beginner.
3. Set Aside Funds
Before you begin to utilize trading strategies, you should set aside a sufficient amount of money that will be utilized solely for exercises. This money can be accessed only after your practice is over. In addition, by setting aside funds for training, it will keep your focus intact.
This is possible by knowing which stocks are great investments, and holding onto them long enough to earn huge returns on your investment. Although this may seem like dream to new investors, it really can happen for those that have the patience and fortitude to see their plan through.
Now that you have all the basic knowledge, you can try out intraday trading and gauge your skills through simulators and practice. Remember that learning is a long process, so never think too highly of yourself in the beginning. Start with small trades and be patient, before making high-value trades once you feel confident. So what are you waiting for? Start your journey right away!