How To Do Intraday Trading Smartly
Finance - Stock Market - Intraday Trading
Everyone wants to earn money everyday, fastly. I also thought that but it is not the safe way of earning money because there is risk of losing money and nobody wants it in any condition.
Here are some basic important things,tips, techniques and smart ways of intraday which gives you an idea about trading and you keeps yourself in safe condition and trade properly.
In Intraday you can get money in one day or some times in hours or may be in minutes. If you want to earn money regularly then first you must know some basic things about intraday trading.
Intraday Trading
First of all you start trading with 100 or 200rs because if you don't know single thing about day trading then it's best and simple way of learning lots of importance things properly and how to do intraday safely.
Intraday Trading: Start With 100 or 200rs
At starting when you do trading then you can make small mistakes unknowingly that small mistakes make your loss without any reason. Small things which are small in size and they are technical things and definitely make your loss. You understand it after careful study and from your first independent trade.
Starting with small amounts is the best way of learning many things at a time and then you will actually become ready for trading.
For example:
As a trader if you are trading with 100 rs then you can buy only one or two equity shares only. Here you must set right profit margin which gives you profit after cutting all brokrage + charges.
(Profit margins means how many rupees you want per share like 2 , 3 ,5 or 10 rs)
So here you need to set more profit margin ok, if share price hit that price you will get the profit but its not then you don't get the profit and you will have loss and it you will cut from your amount.
Consider You have bought share at 100rs then you need to set profit margin of 4-5rs then and then only you will get the profit otherwise not because other charges also cut both the( buy/sell) time in trading.
Here you will learn the most important lesson of intraday trading is that every time your profit margin price can't be hit, so you must set less margin and need to adjust it as per momentum, price direction and situation of market.
Some things you will know and learn When you will trade :
• How and when to enter in the market and when to exit.
• What should be the profit margin.
• If you have loss then how you can Recover that loss.
• How many times you can trade in day if there is more movement in a day.
• If you will have loss because of wrong position then you can exit immediately and take new position.
Once you know this then you will confident about intraday trading easily and you can invest more amount as per your limit.
I just want you to learn some basic things first which are technically important and then you can trade smartly and safely in market .
Intraday Trading: How Can You Start To Trade
The market is pre-opens at 9.00 am and actually opens at 9.15 am. So you have to
ready at 8:00 am and need to do some homework and prepaee yourself before trade.
Your first step is to only observe the
market carefully for half hour.
(From 9:00 to 9:30)
Then you can
decide in which company you can take the
position for buying or selling a shares.
In intraday you can sell shares
first and then buy it. Selling is also
called 'short position'.
Then Observe the movement of price and volume in candle stick graph
for every ten minutes. Then see
volume, buyers, sellers and previous close
and today's open price, how many change in
price. based on this information you can make an overview
of the market (like what's market position
positive/negative , strong/weak..) direction
to enter.
Intraday Trading: Trade Safely /Limit Your Loss
When you buy shares then immediately set the profit margin and place the order in sell position. Then decide how many loss you can afford and place the stop loss order some near to buying price, nigher too close to buying price nor too long from buying price. Then place selling order . Selling order will only placed when your share buying order is completed.
For example:
If you have bought 20 shares at 700 price then place selling order to at 705 to 710rs max. And stop loss price at 694 - 695rs.
Always set less profit margin and try to buy more quantity shares because no one can't predict how much price will go up or down ok.
As per the market direction, volume and gained price of share the selling order should be change because if your are entered at right position then you can increase your profit margin or if the position is wrong then you can reduce the loss by taking exit.
Intraday Trading:Things Must Keep In Mind While Trading
• Always trade in nifty - 50 companies
because there is more exposure you get from
broker for nifty company's than others
companies. sometimes you can do trading in
others companies also.
• In nifty 50 companies there is always high volume daily and more momentum. So this is safe and simple for trading at start.
• Always buy high price share if you are a begginer also take experience of good traders because in small price share there has high volume but not the more moment in price which needs for intraday trading.
• You can buy more quantity in
small price company but more quantity always
doesnot matters Instead in big price company
(800-1000rs) there is less volume but you can
get the expected moments as you want.
• Also you can take many positions and exit safely
because there has momentum of (5-10rs, 15-20rs)
so you can earn 5-10rs profit per share.
• Here you can easily trade 2-3 times in a day .
Intraday Trading: Don't Do It While Trading
Don't do hurry and be hungry to buy or sell shares. first observe and then carefully enter in market otherwise you will make 100 % loss.
Do trading in only one company, you can do in many alternately but don't do it at same time if yiu are new to trading. its much risky, Because you can't observe all company graphs at a time and every thing in intraday is depends on technical graph. So trade only in one company when you done then you can go for next.
Always buy shares at your price(limit price) not at market price (current price).
For e. g if you want to buy shares of a company and current price is 800rs then place order at 796 or 795 rs because price will fluctuate at current price to stable and hits that your down side price in fluctuations, because of this smart trick you will already in 4rs profit and this will your extra profit besides set profit margin.
Don't hold your position for long time if you think there arw not any upside or down side moments in price then exit quickly. Don't wait, waiting for more time may be you lose your gained profit.
Always trade with selling order and stop loss order because price can be increases or decrease at any time in just seconds.
Don't do intraday trading every day. do it if and only if you think there is moment by your study. Doing intraday trading everyday may be you lost your last day gain also your invested amount.
So These are the things, some technics, and safe way I got from my study and which is useful to me for making money. You can also use this but trade at on your own risk and do your study also.
And lastly Always remember, trade with a right stoploss.
! Start Trading Today !
Published in :Intraday Trading
Read This:
How To Avoid Unneccessary Losses In Trading in Share Market
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