“Trading effectively is about assessing probabilities, not certainties.”
The
term intraday simply means “within the day” and also named day trading.
Hence, the intraday trading refers to buying and selling of trading
stocks during regular trading hours in a single day. Intraday trading is based on price movement. It means you buy shares when the price is low and sell them when the price rises.
Got the idea? Now, if you wish to start with intraday trading, read on to understand the basics of it and how to begin with
How to do you start?
Before
you start trading, you should keep pace with the latest stock market
news, events happening and get to grips with stocks you are looking
forward to trading for. Scan business news and visit some good financial
websites. So, do your homework first! To begin with Intraday trading,
you need to Open trading and DEMAT account.
Start Small
As
a beginner in intraday trading, keep it simple and small. Focus on only
a few stocks during a session. It’s easy to understand the process.
Once you understand the process and get good making, branch out.
When to trade?
One
of the most frequent questions asked is, “when to trade”? Well, timing
is crucial for intraday traders. As a day trader, make sure you can
adjust your timings easily because the different time zones can make you
miss the best entry signals of your day. Experts suggest maintaining
consistency and trade during the same hours of daily.
For stocks, the first one to two hours after the open, and the last hour before the close.
For futures, the best day trading opportunities are from 8:30 am to 11:00 am EST. It starts a bit earlier than stocks.
For forex, 1200 to 1500 GMT sees the biggest price hikes, so this is a popular and active time for day traders.
Define your target
As
a new trader, it is important to have a daily trading target to prevent
yourself from being disheartened (in case of loss) or being too greedy
(in case of profit). Try to understand the risk-reward ratio and set
your profit & loss price target. Stop for the day once you hit the
cap. Track your daily records in a spreadsheet that will help you
identify the gaps, any pitfalls, and also guide you in minimizing losses
next time.
The risk factor
There
is no trade without the risk involved. Day trading is risky for
beginners as it requires to watch the market regularly and closely.
Also, you need a good understanding of daily charts & technical
terms to make the right decisions. Therefore, it is suggested for
beginners to keep a risk-reward ratio and stick by it. This will help
you to “lose less and win more”. “If you personalize losses, you can’t
trade.”
And finally the right broker
Choosing
the right broker should be the wisest decision when it comes to day
trading. Brokers facilitate your trades, provide you with market
research, and suggest you the best investment plans. In return, they
charge you a fee or commission on your trade. Open your trading account
with Arihant Capital and get the best services.
A
final word to the new traders, as Euclid wrote, “there is no golden
rule to the Geometry” similarly there is no golden rule to excel the day
trading. Only practice and a better understanding of the market can
make you a good intraday trader. Always remember, don’t rue over the
losses and don’t get carried away over handsome profits. It’s day
trading get your profit and walk out!
Comments
Post a Comment