Definition

How to make Money in Intraday Trading?: Intraday Trading means buying and selling of the stocks and to square-off all the positions within the same day at the end of the market hours. Intraday Trading is set for earning profit and not in maintaining the ownership of shares in a particular company. The trader sets the target to execute its trade to get the maximum reward in the transaction.

Intraday Trading can happen in another way also like you can buy the shares in the morning and can sell in the morning and can buy another trade in the mid-way day and can again square-off during the end of the market hours. It is the only platform where you can buy or sell shares without having an impact on the Demat account.

In this type of trading, you will get the benefit of taking a high amount of leverage and you can define the order as a Margin for Intraday Square-off (MIS) order and you can get intraday trading limits up to 5-10 times of the transaction value, based on the volatility of the stock. This thing sounds great, but then also 80-90% of the traders are losing money in the stock market because they are not following the basic requirements for the pro-trader. You will get to know the requirements in this blog.

Steps for making Money in the Intraday Trading

  1. Measure your risk
  2. Move with the Trend
  3. Technical Charts
  4. Trade with both the opportunities
  5. Record your Trading in a diary

1. Risk Management- Measure your Risk

Before placing your trade, you should define the risk you can bear in per trade this is the basic rule for intraday trading. You need to set your limits on the losses you can handle in per transaction. Always take around 1-2 % of the total risk from the capital you are investing in. The risk should not proceed more than 2% and if crossed the limits then the trader must stop trading at least for 1 year and should educate himself first.

Build your strategy in that way so that it helps you to at least earn some profit and to stop making losses on it. If the losses are continuing in the strategy then please check the mistakes and learns from it and re-build another strategy basis on your learnings.

2. Move along with Trend

You should trade according to the trend of the particular stock. This is necessary to move along the trend that is having momentum. In this, it is necessary to gauge the moment of the stock whether it is going up or down. The trader becomes a pro-trader when he becomes an expert while making predication about the moments of the charts by seeing the previous day moments of the charts.

Learn: Technical Analysis

For making money in intraday trading, you need to follow the trend and the momentum of the particular stock and then only you can make some profits if your predication goes in the right direction. For becoming an expert it is also necessary to study the charts and educate yourself on a daily basis.

3. Technical Charts

As a trader, you need to trade according to being a technical analyst you need to focus only on the moments of the price or value that the stocks are showing and to read the charts. There are many indicators and strategies for the technical charts in which you need to work for the intraday trading. You also need to develop some ability to read some technical charts basic on your own. The basic is the support, resistance levels to indicate whether it is a buy or sell.

Watch the breakout’s that are seen above the resistance and below the support level to make the decision. If you get the basics of the technical charts you can go a long way of doing it properly by improving your intraday trading performance. Don’t take tips and then makes the trade. You can take the advice from the trade expert in the same field and take some knowledge from them to trade further in intraday trading.

4. Trade with both the Opportunities

In the stock market, there is not always one-sided opportunities the market gives an indication on both sides of the market. You go for the buy mode when you believe that the market will show up-ward momentum and you go for sell mode when you believe that the market will show downward momentum.

Don’t just be a buyer trader or seller trader, if the market is giving you opportunities in both the ways then you should need to do the trades in both ways and don’t be single-minded while trading. In the stock market while trading, there is no bull side or the bear side there is just the right side. Take the opportunities on both the ways and earn profits from it.

5. Record your Trading in a Diary

A trading diary is a secret weapon for every successful investor of the intraday trading. This diary just not contain only the trading activities or the profits or losses you made but this also makes you learn your mistakes. After every day you need to go through this diary and also analyze your daily trades.

It is useful for the traders to get their mistakes they are making on their trades and to get the learnings from it and also to make sure that the mistake won’t repeat. Gradually and eventually you will become a successful intraday trader.

About Us

In this blog, you will come across the secret techniques and simple knowledgeable practices that will make money for you while doing intraday trading in the stock market. Intraday Trading will turn profitable for the traders when they follow these simple steps regularly and with discipline. Trading Fuel is helping the trader to know them their mistakes and also provide them with the solution for it. Through this blog site, you will learn and make yourself educated from different materials that are posted in the blog. Read more from the blog site for such amazing materials and the information.

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.