What is intraday trading and How to do it?
Know More About Intraday Trading
Thanks to the online trading platforms, stock trading is a matter of clicks nowadays. Anyone who has the basic understanding of the trading concepts can do it without any hassles.
However, even if the operational part has become simple; the technicalities of it need to be mastered to make it profitable.
Stock trading terminology is complex and typical. It is essential to understand it beforehand.
Intraday trading, for example, is a term that is quite popular. What is it? Why is intraday trading so popular? Are you also puzzled with the similar doubts? The blog tries to answer all your queries.
Intraday trading is the ‘same day’ business
As the name suggests, when we buy and sell a stock within the same trading day, it is known as Intraday Trading.
It is quite clear that the objective of the intraday trading is not to invest money, but to reap the profit. Traders buy stocks that are speculated for high movement of price within the same trading day.
Generally, high volumes are bought to increase the profitability. Also, low-priced stocks are considered ideal for it.
Online trading has made intraday trading quite simple. You need to specify that the trade is for intraday.
Then, it will be squared off before the trading day ends.
Points to ponder
- Follow the Intraday Trading Tips: Since you must square off the position before the trading day ends, you should be thoroughly confident about it. Hence, you must refer the tips given by trading gurus.
- Follow the trading indicators:It is critically important to follow the trading indicators in case of intraday trading. The risk factor is high, and one can’t assume that a stock price is going to increase intraday unless there is any indicator for it.
- Exit at the right moment: Whether you book profit or loss, it is essential to do it at the right moment. Timing is crucial here. If you feel that the stock price is going beyond the threshold level, then get out of the risk by squaring off immediately. Similarly, don’t wait for a stock price to rise further if it has reached the upper threshold limit. Square it off and book the profit. The upper and lower threshold values should be decided by you.
Intraday trading is a tricky business, but it has immense potential. Pick the right stocks and exit the holding at the right time to reap reasonable profits.
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