Intraday trading is day-based trading where traders open and close their position on the same day such that the net position at the end of the day is zero. In intraday trading, there is no change in the ownership of shares. Traders try to maximize their profits by making the best use of market volatility. Intraday trading is well-suited for people willing to take risks and follow the markets closely. The key is to track the market trends continuously and time your trade to perfection. You can follow the share market tips and live equity tips to execute successful deals and churn out huge profits. This article will take you through all the essential details pertaining to intraday trading.
Here are some of the commonly used terms in intraday trading:
Long position - A long position is buying a stock, commodity, or currency with the expectation that it will rise in value.
Short position - A short position is the buying of a stock, commodity, or currency with the expectation that it will drop in value.
Stop-loss (SL) - A stop-loss order is an order placed with a broker to buy or sell once the stock reaches a certain price.
IOC - An Immediate or Cancel (IOC) order permits a trading member to buy or sell a security as soon as the order is released into the market, failing which the order will be removed from the market.
Regular lot (RL) - RL means Regular Lot. This type of order has no strings attached like a stop-loss, or IOC.
Support level - A support level is the price level at which buyers tend to purchase or enter into a stock. It refers to the share price that a company rarely goes below.
Resistance level - Resistance level is a price point on the price chart where traders expect maximum supply (in terms of selling) for the stock or index.
Bullish - If someone is bullish, they expect the stock/index/security to go up.
Bearish - If someone is bearish, they expect the stock/index/security to go down.
You may be a new investor or someone with experience, but one thing that everybody appreciates is tips. Those who trade daily scout for intraday trading tips, can get their hands on important piece of information that can be their next ticket to solid profits. With markets showing volatility, trading opportunities are aplenty. Share market tips help traders take short-term and medium-term positions. With the help of intraday trading strategies, you can generate good return on your capital daily. Intraday trading is an exciting way of investment. You have to choose two or three liquid securities, and for this intraday trading tips from trusted sources will come in handy. Such information can be in the form of top intraday tips for today or the best intraday calls for today. You may get free intraday tips from top brokers like Nirmal Bang when you open a demat account.
Then, determine entry and exit/target prices. Do remember to utilize stop-loss (SL) for lower impact. Book your profits when the target price is reached on intraday trading today.
Don't move against the market and remember the basic rules for intraday trading. It is useful if you have an idea of how the market is moving if you want a higher chance of success.
There are a few rules for choosing stocks for intraday trades. While your focus on intraday trading tips is good, spend some time on the stock selection as well.
The first rule is trade in liquid stocks. You do not want to get stuck when you want to exit an intraday position. Illiquid counters do the opposite of what successful share market tips do. Always use nse intraday calls or bse intraday calls in sufficiently liquid counters. Gain confidence and then eye intraday derivative technical trades.
Second rule is to pick stocks that have medium to high volatility. When you get a list of ' intraday tips for today ', pay attention to the volatility of the stocks. Do not trade in stocks that exhibit very low swings. Then, your target price may never be reached in a day. As part of your intraday trading strategies, stick to stocks with fair amount of volatility.
Third rule is trading only with the current intraday trend. Avoid taking contra positions that are diametrically opposite to general market movement for the day. Be it free intraday tips or paid intraday tips for today, if you go against Mr. Market there can be bad consequences.
Fourth rule is to trade strong stocks in an uptrend, and trade weak in stocks in a downtrend. This rule must be practiced diligently. Even if you have the best intraday tips, trading strong in stocks in downtrend is a recipe for disaster.
Fifth rule is to be patient. Many investors using intraday trading tips often get impatient. You may be required to wait. When there is a pullback, trades can pay handsome profits. So, make patience an integral part of your intraday trading be it equity or commodity.
Sixth and final rule is to take regular profits from intraday stock tips that are working. There will always be trades where you make money, and trades where you don't make money. It is important to monetize share market tips that are showing gains. Profit booking helps you gain confidence.
The best intraday trading tip that is given to any intraday trader is to follow the trend. An intraday trader should develop a good understanding of the market and its trends. For this purpose, intraday trading indicators when coupled with intraday strategies offer lucrative returns. There are multiple intraday trading indicators, the function of each indicator is different. While some indicators indicate the volatility, other indicators show momentum and trend of the market. All the indicators offer deep insights into the market trend, its direction, momentum, popularity of the stocks through volume assessment, the potential of profit. All these indicators offer a complete clarity of the market and help the traders in making well-informed decisions.
When doing intraday trading, it is important to have a reference material that leads to efficient decisions. This is where the intraday charts play a pivotal role. Intraday charts are the most popular and commonly used by the trading community. The charts depict the price-movement of stocks on a particular day. The intraday charts are used for analyzing short-term, medium-term, and long-term periods. The five types of intraday charts namely hourly charts, 2-minute charts, 5-minute charts, 15-minute charts, and tick-trade charts provide a holistic view of the performance of a particular stock. You can efficiently plan your future trading strategies by referring to these charts.
While intraday trading can be highly lucrative, it has a few risks associated with it. Hence, it is imperative to stick to a proper strategy and execute it. Time period analysis is vital in intraday trading, it gives deep insights about the past, present, and probable future of the market. Regardless of whether the trader is trading for short-term or long-term, being proficient in time analysis is the key to success in intraday trading. For time analysis, the intraday trading charts are valuable, the charts depict price movement at regular intervals. This helps traders to take a call on the position and plan future actions.
Many traders often lose money in intraday trading because they lack a full-fledged trading strategy. Their decisions are entirely driven by gut feelings and emotions. However, this should not be the case. It is important that you generate profit from intraday trading. For a trader, the biggest problems happen when he/she runs out of capital. Profit is the source of new capital.
First of all, to be a successful intraday trader your basics and fundamental understanding of what is going on have to be clear. Intraday trading tips do help, but you must know how to execute them. You should be able to individually do intraday large deals and intraday small deals. Stick to liquid stocks; check the Nifty 50 company list and initially invest in them.
Second, you have to understand money management. This means you do not commit all your funds in one trade. You use a portion of your total money in a single trade. You also monitor inflow and outflow of funds so that there are no mismatches or fund crunch. Be it equity intraday tips, or commodity ones i.e. mcx intraday calls, money management is very important. Use margin funding facilities smartly.
Three, your emotion is not a part of intraday trading strategies. If you have to make a profit, learn to keep emotions aside. Emotions can play havoc with the best of intraday trading tips. Try to read a lot about specific stocks and refer to information in research reports for gaining knowledge.
Many traders often lose money in intraday trading because they lack a full-fledged trading strategy. Their decisions are entirely driven by gut feelings and emotions. However, this should not be the case.