Before starting of how to do Intraday Trading firstly we need to understand the definition of what is Intraday Trading in the Stock Market.

Intraday Trading Definition

Intraday Trading means that it refers to the price movements of holding security or assets which hold during a single day of trading. To do the trades you will need an online trading account. The main objective of the trader is to earn profits by taking advantage of the stock market momentum. For doing intraday trading few things are necessary to know when you do the intraday trading. In this blog, we will walk through some important part which is important for intraday trading.

Top 10 Basics of Intraday Trading

1. Knowledge
2. Define the amount of Capital
3. Capital Drawdown
4. Risk Management
5. Risk per Trade
6. Unique Strategies
7. Perfect System for Trading
8. To Plan
9. Meditation
10. Discipline

How to understand and apply from these basics?

1. Knowledge

While entering in any new segment or business, there is a need to get full knowledge about the segment or business you are heading forward. If it is about entering into the stock market then you should get the minute details about the stock market from an advisor who is been a professional and expert in the stock market so that he will give you the proper information as per your needs.

Knowledge will provide you about the clarity that whether intraday trading is suitable for you or not or whether you are mentally strong to do the trading. Getting knowledge from the right place provide you with details about the areas you should focus upon.

2. Define the amount of Capital

As you will start any business, the first thing you will define how much capital should you invest in. If you are altogether starting a new business then it is necessary to take the proper knowledge and as a starter, you will not know that what is the right amount of capital you should invest in the business to earn some profits same case is the with the intraday trading.

In Intraday Trading, you should define the minimum amount of capital you should invest as a beginner and you should also pre-define that starting in the new segment will not provide you with a lot of profits there will be loss and from that, you should understand and learn. After that, you will surely know the right place and amount of capital to get invested.

3. Capital Drawdown

It’s refers to how much amount of the money that is made for the investment is going to make a loss with a comparison of the actual amount of the investment. Capital drawdown should be pre-defined while doing trading. In the stock market, there is nothing to do during market hours everything should be pre-planned beforehand and during the market hours, you just need to move according to the movements of the stocks in the stock market.

In this the activity that can be in control and can be done through us otherwise, profits cannot be in control. For becoming a pro-trader it is necessary to learn these things and act accordingly through this.
This amount is referring in terms of percentage of the total investment done of the capital in the trading and from which how much amount has been lost.

4. Risk Management

Risk management is the system by which many of the loss-making traders will get an idea to make less loss in the stock market and risk management is the key to make you’re trading more easily. In the stock market, there should be no emotion while doing trading and also no fear and greed.

Risk management is the ultimate key to make you a winner in the stock market. In the previous blogs, we have also written on the risk management in the brief and what are the facts for becoming a winner in the stock market. If you will read that blog you will surely change the perspective of your thinking towards the stock market.

5. Risk Per Trade

Risk per trade means how much risk an individual can take while doing trading. Risk per trade is also an activity that should be plan beforehand while doing the trading the focus of the trader should be only on the movements and should observe whether the things he had pre-determine are working or not.

Risk per trade is an important part because if you don’t decide the risk and trades unknowingly and makes a loss in the trading you will get affected by this emotional and your moral will be down. For becoming a pro-trader, there should be no emotions working in the trading and all these things should do not harm your mental health.

6. Unique Intraday Trading Strategies

Being a trader, you should always keep yourself updated in the stock market. By educating and learning new things that the markets react upon you should make yourself adopting that and make move according to that in the stock market. By reading more books that have been written by the successful investors and by reading the articles you will start to apply the things you learn from them in the market.

Not just work on their strategies but make unique strategies for yourself that will work for you and help you to make profits from it. At the start of the strategy you will not work up to the mark but by learning from the mistakes and applying it again you will make it successful for you.

Here Are Some Unique Strategies:

  1. Secret Formula of Intraday Trading Techniques
  2. Top 3 Intraday Trading Strategies
  3. Demand and Supply Trading
  4. Best Intraday Trading Indicators
  5. What is The SuperTrend Indicator?

7. Perfect System for Intraday Trading

The perfect system defines that how many screens will a trader can connect for the trading. About the set-up for CPU and the internet connection that will be perfect for the trading. The requirement of the perfect ram size and the anti-virus. This is term as the perfect system for the traders who do intraday trading. 

The proven system will help you to make correct decisions and right choice for trading. The proven system means a body for trading in the same way if your body is not in good condition you will seem ill and same happens with the trading if the proven system is healthy you will be wealthy.

8. Plan for the Execution

It is the essential part of trading, in the above points, almost every point is should be pre-defined only there is nothing which will make you profitable if you do the things without any plans. Planning is always the key factor for trading or any other business.

It comes with an advantage because you can define more than one plan for the execution and if you had studied things before then one of the plans will give you success.

9. Meditation for Relaxation

Meditation is advisable for every individual in any of the segment of the business not only the investors or traders but every individual because it makes your mind calm and will be helpful to reduce the stress. It will work in the stock market as you can make the trades with a calm mind and chances of getting profitable increases.

It will relax your mind and increases your morale and gives you more energy for doing trading properly. In the stock market, there is no place for emotions the moment the trader starts to do it’s trading with emotions, he will start to make losses.

10. Discipline

All the above points that are mentioned need to be followed with discipline in the stock market. From school time till you will get older you have to maintain discipline in everything to make yourself a good person or to get profits if we talk about maintaining discipline in the stock market. Discipline helps an individual to do the trading properly.

About Us

In this blog, it is all about the basic understanding of the intraday trading which helps you to make a disciplined trader. There are many blogs on the Intraday trading, if you want to more about the intraday trading there is a different section available for intraday trading you will some more amazing facts over there. For any further query, you can contact directly through mails. Trading Fuel is a blog site that provides information for educational purpose and it is free of cost.

Author

Prashant Raut is a successful professional stock market trader. He is an expert in understanding and analyzing technical charts. With his 8 years of experience and expertise, he delivers webinars on stock market concepts. He also bags the ‘Golden Book of World Record’ for having the highest number of people attending his webinar on share trading.