Top 20 Day Trading Tips for Beginners in India
Most of the traders like intraday trading, which involves buying and selling of stock within one day. In this type of trading, you do not have to worry about delivery and you can take positions which are a multiple of the funds you have. Unfortunately, intraday trading is not such a simple game as it is made out to be. Before you get into the act of Day trading, you need to learn intraday trading secrets.
Let’s look for best tips for beginners that help you to kick start your career as an Day Trader. Nowadays, there are many types of trading practices available but the concept of Day Trading is perhaps the most popular one.
Here are some Golden Advice for Newcomers.
Know about Intraday Tips and have mastery on it
There are many people who actually don’t have good Intraday trading strategy and still take risk in the market. If one doesn’t have strategy that gives random chance in the market it means that one is gambling and can go to the casino. It always takes time, effort, discipline to work on the trade.
Also, if you think you have mastered on effective trading strategy like Price action then you need to stick to it.
Be truthful and sincere with yourself
Many traders have wrong trading mindset because they are not ready to lose money and are constantly worried about it. They keep on searching for tips for beginners on google. It’s part of trading life that trader lose and win and once you are clear about it you end up earning more. So be clear with your afford state and right frame of mind.
Trust Yourself more and ignore tips
Once you have right knowledge and strategy then the right step for you is to ignore the stock pundits on news channels tips provider. Try to put full stop on your search on advice for beginners and Trust yourself; build your own trading skill and guts about the market.
Always take new trade as fresh one
Most of the traders are influenced by their recent trade. E.g. if your trade hit the stop loss then you might breakup and separate yourself from winning. But if you are a professional trader then you will not be affected by such a situation.
Always control losses but never avoid them
Most of the traders ask this “why a perfectly good trade setup failed?” The reason is one cannot avoid losses in trading. So try to learn the risk reward and money management.
Always save your capital for easy trades
Many of the times traders waste their hard-earned money on the trades which is totally opposite of their criteria and of poor setups. Always observe the market and spend of good trade setups.
Always plan your trades
Many traders jump into the market with no plan. They don’t possess any risk management strategy. Traders often end up with gamble or with no entry strategy.
Have realistic approach for trading
No one can become trader in six months, year, may be not even five years. Trader need to have realistic approach if want to succeed at trading. No one can get quick rich formula of trading. So, always have right trading mindset, focused and learning to trade properly.
Develop a Working Trading Strategy and Keep update it
If you select a good Intraday Trading Techniques, which is tried and back tested. then you will surely make money. The development of strategy may take more time, but once it is done you can use it for a long time. You have to develop different strategies for different market conditions like volatile market, Gap up, Gap down of stock, etc. According to market condition, you use a different strategy.
Identify and Follow the Market Trend
Identifying and following the market trend is one of the useful Intraday Trading Tips to be profitable in intraday trading. It may sound easy but the fact is that this is the most difficult part of the day trading.
Once you identify the trend, but due to volatility, the trend may begin to reverse soon. Therefore, it is very important for beginners to learn how to identify the trend quickly and follow it. You must analyze the open price, volume, delivery quantity, delivery percentage, range, volatility and price movement of stock. This helps you to understand and identify the trend of the stock.
Take a break
Staying away from the market is also an important decision for intraday traders. As an intraday trader, there are three key decisions you make. Interestingly, most of the money in day trading is actually made when you sit out and doing nothing while the rest of the market is burning profits in the chaos.
Trade-in Different Stocks and Different Sectors
Many traders are habituated to trade in particular stock and sectors. Do not try to do maximum trade in a particular stock.
Analysing different sectors will give you the best opportunity to make profits in intraday trading. You can select stock by analyzing which sector is performing well during the opening session and from that sector you can pick the stock for intraday trading.
Strictly follow the Stop-loss.
Before you enter in to trade, you must fix the stop-loss that you are ready to take. Fixing the stop loss in advance will help you to protect unprecedented losses. It is also very important to book the profits and losses at right time. It protects from curtail unexpected and huge losses.
Do not Overtrade
Multiple trading sessions can become very harmful. Day trading requires 100 % focus. Make sure that you give your 100 % concentration to each trade., therefore the number of trades should be kept less.
Keep Analysing and learning
The more you learn, the more you earn.
This is one of the advice that helps newcomers to become a successful intraday trader. Intraday trading is all about analysing each trade, each mistake and each gain which help the trader to learn more each time.
Learning never stops, never forget that.
Do not get affected by emotions
To become a successful and professional trader, you must keep all your emotions away, including fear and greed. The over expression of any of these emotions can cause major losses within a day. when the emotion is involved with trading, trader will also face lack of confidence and also after getting big profits on one day must not makes you over confident.
Intraday trading is all about the game of mental balance. An intraday trader must have practical approach towards trading.