are considered as one of the most demanded tips by everyone, and why not it should be in demand ?Though everyone want to get rich in one day but they also not want to loss their money on the other side. Well apart from all these lets begin with our Intraday tips that works for all.
Below are some points which can help Intraday traders and earn more money with this Intraday tips :
- Stock Selection : Investing all your money in the single stock is considered as bullshit in the share market, instead you should choose stocks in bulk (after analysis of every stock) and then invest your share of money in each of the stock according to your suitability. You must also remember that you should not choose liquid stocks i.e. avoid the small cap and mid cap stocks which are not liquid enough.
- Stop-loss attention :You should wisely choose reward to risk strategy. Many professional financial adviser suggest that it should be in ratio of 3:1 i.e. price at which you are selling the stock due to losses should be three times lower than the price you are expecting the profit. It is one of the major concern in intraday trading that what will happen if the price suddenly goes down ? So to avoid such risk you must decide the Stop-Loss of the stock with a proper analysis.
- Targeted strategy :
- In Intraday trading, this is quite common mistake that every trader does i.e. due to small profit they have made they start to think that the price is again going to get higher and they loss their money in order to get more profit. So it is very compulsory and necessary to set the target before invest. If you are sure about the price (going high for the particular stock) then adjust the stop loss accordingly before investing.
- Try not to challenge the market :
It is not possible to predict accuracy and preciseness of the market so it is highly recommended that never try to defeat the market in order to show-off yourself, this will always turn the tables 180 degrees. Do not stick to your analysis in Intraday trading, because of high volatility of the market price changes rapidly so move according to the market. If the stock is not giving you profit in Intraday then don’t put it in your pocket sell it as soon as possible before it reaches stop loss value.
Time Analysis : Here time analysis means keeping the records of the stock i.e. how different stocks are variable on the same day. Many good traders uses chart analysis of the stocks for Intraday trading . Chart analysis can be of different kinds like hourly chart, 15 minute chart, 10 minute chart, 5 minute chart and 2 minute chart. This chart will help in analyzing the short term movements of the stock.
Platform Selection : In Intraday trading, the transactions occurs frequently in a small gains, so it becomes necessary for traders to choose the most secure platform for their transactions. You should choose the platform which allow decision making and execution and also with a minimum brokerage charges.
Set the Entry and Exit Price :
Buyer’s fallacy is biggest headache for investors and traders, buyer suddenly changes mind and they think that they made a mistake in buying the stock which led to loss. So in order to get rid of this headache you must set the Entry and Exit price of the stock before taking a position.
So these were some of the Intraday tips which will help all the Intraday traders and investors in making more money. I will also try give you a brief about thein my next post. Wish you all good luck and have a good day.