What are Some Important Intraday Trading Advice?
Important Intraday Trading Advice for Day Traders
We have listed top 6 most important advises useful for day traders as below.
Research the Trend of the Market
SGX Nifty is an indicator being used by Indian Markets to predict Nifty Opening at 9:15 AM as Singapore markets open around 2.5 hours before Indian markets. SGX Nifty is available for trade from 6:30 AM to 11:30 PM as per Indian time. The First thing is that, a trader should analyse SGX Nifty, its trend in International Market, before our NSE opens for trade at 09:15 am. A Trader should find the market trend in first few minutes of opening of NSE market for trade. Always buy strong stocks in uptrend and Short Sell weak stock in downtrend first and square off your positions later.
Finalizing you Daily Profit and Loss Limit
A trader who wants to do day trading has to finalize his daily profit and loss target. Once He gets the decided profits, he should square off his all positions and stop trading for the day. Even if he makes losses on his trades, i.e. he is losing the money that he had fixed for the day. He should exit his positions, book loss and close the trading application for the day.
Selecting Right Stocks for Trade
Once the trader is ready with the Market trend, he should select the best sector first and then the best stock in that sector, where that trend will work and he can make money. There are 1000 of stocks available for day trading, traders should look for Liquid stocks i.e. stock have good volume. Also stocks those are volatile medium volatile stocks or high volatile stocks should be considered for day trading. We have best team in our Research who will always help you by giving best stock tips to trade and make money in stock market.
Putting your Orders and Booking Profits
One you have decided the stock to trade, timing of the trade is very important. A Buy order or even a short sell order executed at right time can increased the profit that you making in your trade. Whenever you put any trade, may be a buy and sell later or even a short sell and cover order later, decide the targets and stop loss for the trade. Don’t ever change the Stop Loss of the same under any circumstances. You can book profits on regular intervals if you are trading in Equity Cash. A Trader can increase his profits on good trade by Changing Stop loss. If a trader has purchased a 100 Shares of Stock “A” at a price of 100 with a SL of 95 and Target of 105 and 107. After few minutes’ stock moves to 103 Levels, here a trader can changed the stop loss to 101 and target one to 107. Again after few minutes stock moves ahead and reached 105. Trader can again changed his stop loss from 101 to 103 and his target from 107 to 109 levels. Trader can also booked part profit by selling 25 to 50 Shares at this level and hold the balance to sell for higher profits.
Be a Trader not a Investor
If you are a trader, be a trader, don’t ever become investor. Some traders take long positions in the stock that they have taken for day trade. They do this to avoid loss for the day and thinking that after few days the stock can again move up and they can make profits instead of the loss. This Strategy will ruin your hard earned capital, so avoid it.
Analysing you Trades
Some time your some trades may go wrong and sometimes you could make lot of money. Once Market is close, we request you open your trading book and write your own report of the trades done by you and what went wrong and which decision was right. This will help you to avoid loss making trades in the future.
Traders should avoid trading for few minutes when market opens for trade and also when market is closing for the day. If you are a newbie to trade, trade in small quantities first, later on when you get experienced, you can trade as per your requirement. We say that market is a sea of money, if you follow the advice as above, you will surely earn lot of money doing day trading.
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