Which is the best formula most using intraday trading?
Best Formula Mostly Used By Intraday Trading
The stock market has always been one of the most lucrative choices for multiplying the money fast. Yes, indeed this market has tremendous potential of giving incredible results.
Other than long-term investments in stocks or mutual funds, intraday trading is also preferred by investors for quick and substantial gain.
It is a high-risk-high-profit trading strategy where you have to be ready for extremes. The profits and losses both are of high magnitude.
However, it is possible to minimize the risk and maximize the income by following right techniques.
What is the formula that can give 100% guarantee of profits in intraday trading? Well, there is NO such formula, but it is very well possible to derive the best formula that suits your trading style. You can derive your own formula after a few months.
Intraday trading formula
Here are some valuable intraday tricks to help you in this challenging battlefield.
- Don’t ever carry positions overnight. This is the ground rule!
- Hit the first target when the price is about to touch it. If you are a risky trader, then square it. If you are a safe player, then square off half of the position. The remaining half must be squared when the second target is achieved. If it doesn’t happen, then square off the whole position at the end of the day.
- As soon as the scrip price reaches the stop loss level, clear all the holding immediately. Don’t wait even for a second. Stop loss is the risk control mechanism which is ignored by most intraday traders and they get into heavy losses.
- Do not chase the stock when you are unable to buy it. The stock may hit the circuits in the same session or successive sessions. Hence, there is no point in buying the stock.
- In any situation, the analyst is not responsible for your loss. Therefore, you must do intraday trading at your own risk.
- Whether you do intraday trading or long-term, you must invest in stocks that are fundamentally strong. Don’t put your money at risk in loss-making companies in spite of receiving multiple buying tips. Such stock will eventually incur huge loss.
- Start with some small investment. Have realistic goals about the profit and start trading. Don’t get carried away emotionally.
- Choose at the most three stocks. Stick to your goals. If you feel that the price is breaking, then exit from the holding. Don’t stay with an anticipation of a spike. It never happens.
- Do not invest in penny stocks. Since they are very cheap, there is always a risk of getting tempted to it.
Intraday trading is pretty exciting if you go for it strategically. Whether you are an experienced trader or a newbie, you can do wonders after gathering experience in the niche. There are various challenges in it and nobody can guarantee profit but you can tackle it well after some practice to achieve the results you have been waiting for!
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What are some best books based on concepts of Intraday trading?