Best Intraday Trading Strategies for Beginners
The world of share trading is quite a huge one, and there are plenty to terms that one should understand before investing his or her money. Among the numerous types of trading practices available these days, the concept of Intraday Trading is perhaps the most thrilling ones. In case you do not know, it is a kind of trading in which a stock is purchased as well as sold on the same day itself.
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Quite certainly, the amount of money involved in this kind of trading has to be high enough to generate any significant amount of profit. After all, the upward movement in the price would be quite a little one. So, if you are not playing with a huge amount of money, you will not be able to see a good profit. But, it is also true that novices or beginners cannot risk with big amount of money when it comes to Intraday trading. So, they need to follow some strategies in order to ensure 100 percent profits.
What Intraday Strategies the Beginners should follow?
- Keeping it small in the beginning is obviously the most basic strategy a beginner should bear in his or her mind. In Intraday trading Tips, it is essential to develop a solid understanding of how the stock price movements happen from the morning when the market opens till it closes. So, try to begin your journey in this kind of trading with small investments.
- Secondly, it is important to know about the stocks that are considered safe bets for the Intraday traders. There are certain stocks that deliver guaranteed returns, but in a very small amount. These types of stocks are less volatile in nature; and therefore the profit or loss margin involved with such stocks are also quite insignificant. Even if you suffer a loss, you would not cry over it.
- Once you have figured out how the stock market works in the case of Intraday trading, start putting your money on stocks that are a little more volatile in nature. Also, increase the amount of money you are investing.
- In order to figure out the possible entry points, you can seek help from tools like Intraday Candlestick Charts, Real-time News Service, etc. Such tools can help you with three basic aspects- volume of the stock you should purchase, technical analysis of the stock, and the candlestick patterns.
- In case you are not so sure about the above mentioned points, it is better to seek the services of investment consultants. In fact, most of the beginners opt for consultancy services that can assist them figure out a solid trading strategy as per their risk profile as well as planning in life.
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Remember, finding a target is essential in Intraday Trading, and this very factor depends mostly on your style of trading. Some of the commonly used strategies in this regard are- scalping, daily pivots, fading, and momentum. In addition, figuring out a stop-loss is also quite essential for the beginners.