What are Intraday Trades?” ( Beginners Guide):

So, again Hello and Welcome to Trading Fuel

Today, you will get more details about “Intraday Trades”.

Do you know what Intraday Trades is?

Or are you thinking to do trading as an intraday trader?

So, here are some important points I will discuss that will really help an intraday trader to do the trading properly.

This article will give you the knowledge about the intraday trading, important points, and many more information about intraday trading.

There are good chances of making money by intraday trading but there is also associated with this.

So, let us start with the article.

What is Intraday Trading?

Intraday Trading means when the trader buys the stock when market hours are open and squared off its position on the same day before the closes down.

Before starting the intraday trading, one should know about his or her risk appetite or risk tolerance he can handled.

You also need a trading account for the doing the trades of intraday and you need to be very specific and to specify as an intraday order before placing the order and the order will be squared off before the market closes down.

As an Intraday trader you need to define the risk per trade for every transaction you to do in in the intraday trading or delivery trading.

In intraday trading, the most powerful tool you need to put is the stop loss in every transaction you need to calculate to maximum to maximum how much loss you can handle.

While doing the trading don’t bring any emotions as it can also affect your mental state and in intraday trading another thing that you should not do is avoid the fear and greed factor when you are doing the trades.

 As a trader you might follow the technical analysis for doing the trading in the intraday trading so for that you will need to read and to analysis the data’s more.

Now let us go through the important points for the trader to make a note while doing the intraday trading.

Pointers Important for Intraday Trades

  1. Always take the expert guidance if you are just amateur in intraday trading and know about the norms of the intraday trading.
  2. Select that stocks that have higher liquidity and can be sold easily in the stock market.
  3. Always stay updated with the stock market news and always make an eye for any hot news regarding any of the companies.
  4. You also need to make some of your own strategies based on the knowledge you have about the past data’s and always pay attention on the quarterly results of the company as they also bring some good opportunities to make money.
  5. Choose that stocks that have higher volumes as they indicate there are larger number of buyers and sellers trading on a regular basis in the stock market.
  6. Always use the stop loss strategy while placing the intraday trading.
  7. Select that stocks or companies that are more sensitive to news.
  8. Don’t go for penny stocks as they are highly illiquid and have low volumes so they are not preferable for intraday trading.
  9. Do a deep and thorough analysis on the companies before actually making the trading session.
  10. Always select your capital allocation for the trading before and trade according to that perspective.

So, these were the most 10 important pointers for any traders or investors to know and to work like this before actually doing the trades of intraday trading.

You have already owe the demat account and the trading account from any of the famous brokerage firms, right.

So, then when you just log in to your account you will find the live market movements and also about many indicators that are useful to make the decision for either buying the shares or for selling the shares.

Now, that you decided to do the intraday trading you also need to learn about this indicators and their play in the intraday trading.

It is highly recommended that you need to take proper guidance from the expert or from any institutions as there are many courses designed specifically for intraday trading through the technical analysis.

Participants of the Intraday Trades

  1. The one who can take tolerate the risk.
  2. That individual who can follow the market closely.
  3. And the one who can time the trades.

All the above points is need to be fulfill for qualifying as the participant of the intraday trading.

As intraday trading has given high returns and that’s why most of the investors are attracted to this but never forget that the high returns comes with high risk also and it is also associated with intraday trading

“DO THE TRADING WISELY BY TAKING COMPLETE KNOWLEDGE ABOUT THE SCENARIO’S.”

Conclusion

Through this article we tried to explain about “What are Intraday Trades?” and we just hope that the important points will be more easy if you execute it and maintain a daily habit for the same. Intraday Trading is risky also so just take proper guidance before that and also know about your risk tolerance.

About Us

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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.