Intraday Trading Strategies
Most important strategy for intraday Trading
The most important strategy of intraday trading is to earn consistent basis of money on daily.
2nd strategy for intraday Trading
Watch carefully the price of stock movements – Price of Stock movements like Open, (the first price at which the open stock market when the stock market opens in the morning) High, (The price of stock arrived at the highest level in a day) Low (The price of stock arrived at the lowest level in a day) and finally Close. (The price of stock at which it remains or the final price of the stock when the stock market end of the day).
Another important factor to watch is the price of volatile stock. Price of the Stock volatile market means by cents the stock is moving either go up or fall down or how many dollars. This provides you a better idea on what price to purchase and at what price to sell (or first sell and then purchase).
This is the most important strategy for intraday trading but in fact you can get a more superior idea or strategy for TOMORROW’S DAY TRADING for this picky stock.
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Remember that close watch on Demand Supply – Demand and Supply means how lots of sellers are aggressive to sell (this indicates the supply) and how lots of buyers are willing to buy (this indicates the demand). Always keep in mind the price of stock movement depends on demand and supply. The easiest thing to keep in mind (not only in day trading or stock market but also in general life) that more less supply and demand means price is going to go up and if more supply and less demand than price is going to fall down.
Overcall if you study this better strategy more carefully then you will appear to know whether the trader (people) are interested to purchase (buy) or sell the stock and therefore the stock price moves accordingly that is if you see more sellers in the stock market than price is going to fall down and if see more buyers in the stock market then the stock price is going to go up.
Made Simple for intraday trading
On The Intraday (Daily) basis selling and buying of shares is called intraday trading this is also called as day trading. Anything you sell today you have to buy it today or anything you buy today you have to sell it today and most importantly during market hours that is Indian time 9.55 am to 3.30 pm
Advantages of Intraday Trading
• Margin trading –
In intraday trading you obtain margin account on your balance amount means you obtain more leverages (amount) on your existing balance amount to do intraday trading this concept is called margin trading. Margin trading is only probable in intraday trading and not in delivery trading. How much extra amount (margin) you are going to obtain that completely depends on your adviser or broker, or your online trading system adviser or brokers.
If you do margin trading in stock market then you have to square off your open trades on the similar day (means if you perched shares then you have to sell and if you sold shares then you have to purchase)previous to end of market time (that is 3:30 PM).
• 2nd important advantage is that you have to pay is less commissions advisory or brokerage frame for intraday trading (day) as compared to delivery trading. This advisory or brokerage again depends from adviser to adviser or broker to broker (or on your online trading system).
• In intraday trading you can sell and then purchase this is called a short sell which you can’t do in delivery trading. You can sell shares when stock prices are falling and then purchase when the price falls ahead.
Disadvantage of intraday Trading
• As you are advantageous to obtain more extra amount to trade (that is margin trading) and obtain more profits it is also similarly true that you are also taking more risk of loss.
• Square off to the open transaction previous to 3:30 PM at any cost (particularly if you are doing margin trading) at that time the price may not be in your support.
Information About intraday trading tools
A winning share market trading or intraday trader wants well disciplines and following trading requirements –
• PC with high speed internet – If you require to do trading itself then you want to have a PC or else you can do trading in internet café also. A PC with high speed internet connection. The internet connection should not be slow or should not face any other trouble particularly in Day Trading.
• Online Trading Account (Demat Account) – You require to open online share trading account with any of the existing banks or online brokers.
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Intraday trading stocks
In intraday trading, traders mostly wish to make purchasing and selling on little profits or else they seem for oversold or overbought shares.
Taking into better idea these are important points you should seem in for shares while selecting them for intraday (day) trading.
• Instability of Price
• Volume (quantity)
What is accurately these terms mean and how to use them while intraday (Day) Trading.
Volatility of Price
The Price instability means the market movement (go up and fall down) of share price should be more (or highest) throughout the day. In other words the variation in prices of a share should be on high rate so that it will be simple for you to sell or buy at different prices. Assume if the share goes up and fall down in very narrow range then at what price you will sell or buy? So it is always superior if you select shares which have high instability in price movement.
Volume means trading of quantities. The shares which you select for intraday (day) trading should have high volumes (or high traded quantity).
Why this is necessary?
The high volume point to that there is more liquidity. Liquidity means many transactions had took place on this share and lots of people are interested to trade in this share. This will comfort for your trading job because you will obtain more dangerous to the price to sell and buy at anytime. Due to high volumes there will be also high price variations. Volume means quantities of trading. The shares which you select for intraday (day) trading should have high traded quantity or high volumes.
Important points to keep in mind for intraday (day) trading
Here are most important points to be always keep in mind by intraday (day) traders.
Exit and Entry points, profit targets, stop loss limits your desired risk or reward profile,
Amount of capital to be committed to trades or investors, how long you require to hold the share if the market doesn’t support you.
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Rules of Intraday (Day) trading for Indian share market
It is very important to do paper trading or practice previous to you begins actual trading. Here are some reasons,
• It is very important you will come to know how to place sell or buy orders, and also you will more familiar and perfect about using your trading system.
• You will build your confidence in itself.
• The dread of trading will lose your money. It is most important to keep dread away while doing intraday (day) trading.
• You will become more active to exit and enter the market trade. It’s very important that you must be attractive fast to enter and exit the market trade (i.e. open positions).
Guide for daily profit in Intraday (day) trading
• Don’t early to jump in market trend – Stay and obtain paper confirmation of trend change and then make plan and do your market trades (buy/sell). Don’t early to jump in or do early trades previous to any trade change confirmation this might be damage your capital (bank balance).
• Don’t wait in trade for long time – Assume that you had done single trade (either sell or buy) but the bag is not moving either go up or fall down, it is now stable or moving with very low price difference, then you should obtain out of that trade and seem for other bags. You may face these types of situations when indices (BSE or NSE) and not moving with narrow range. At such time either you stay or come out of trade, don’t lose patience and drop under loss.
• Don’t change your trend on volume instability – A few time you enter in trade by looking the sell and buy quantities. For example, assume you perched shares by looking more purchase quantity then sell quantity, expecting more purchase quantity may push the stock/ share move up but after few minutes you look accurately reverse that you look more sell quantity and less purchase quantity or both sell and buy high quantity or the difference of selling and buying quantity is reduced as compared to what you had seen previous to. So this point is most important, don’t more panic and sell off your stock, wait and better understand the market situation properly and then take action. This situation comes a lot of times but if you are confident that your share is going to go up then stick to it.
• Be careful of companies’ gaining or any announcement by Government – Assume in the morning, previous to market starts, you should viewed or read the news of any Indian Company has obtains any foreign company if you look this is really best news/things that Indian company. But if gaining amount is far more than probability then this good news will turn into bad news. The shares of that company will begin falling. So you should not obtain in trade and purchase shares you have to wait and watch other people are responding to these shares or how market and once you better understand then you can trade. So always look at where the market heading towards and then react.
Government Announcement – You should also be more careful to make a decision your trade based on any government announcement.
Better resources to begin your intraday (day) trading in Indian share market
• Early morning read financial newspaper like Economics Times, Business Standard and CNBC etc. If possible note down the breaking news or high lights with relevant to company names and keep close watch on them for that day.
• If possible keep watch morning news related to share (stock) market related TV channels like CNBC, Zee Business etc. In these TV channels you obtain over all movements/ idea of all markets (BSE, NSE) and share prices. And also it becomes simple to catch and keep close watch on related companies if any breaking news comes out during that day.
• In particular a few share market related websites for example Trifid Research He will always provide Stock Tips, Option Tips, Nifty Tips and Currency Tips etc and always displays current news, market affairs, breaking news, share market trends and different announcement done by government or company which may affect the share market and related companies. So try to enter and have all ok on such types of websites previous to beginning trading and also throughout of the market day, if possible.
For latest stock updates on day to day basis, latest market news and also latest share market updates which may affect your shares, then please Go Trifid Research Blog
• So in short previous to beginning you stock market trading you should be much aware of all the current market or related to company news and if possible note down the effective news and breaking news related to stock market and its related to company’s and keep watch on that share and trade accordingly on that day.
Intraday (Day) trading tips
- Get ready your Trading Plan
- Don’t try to get huge profits in one trade
- Accept and Losses of Limit
- Strictly maintain stop loss
- When you are trading in stock market Control your Emotions
- Don’t Over-Trading
- Check out volumes previous to buying