You must have been fascinated by the words that you must have heard in some news channels or from the people nearby that they have earned so much. No matter what you do the first thing that should be in order is to do a proper homework. When you will start researching about the chances of earning bucks in intraday trading, you will see that this business is something which has a failure rate of over 90%. Now, will you still consider it as a career option?
Having said that smart traders in the stock market has always earned money in intraday trading. To become that smart first you need experience and then, of course, the advice from the best share brokers in India. Unless you have both don’t even think of intraday trading otherwise you will be done from this market very shortly. To make sure, you survive the volatility and uncertainties of the market, you need to take into reckoning the below-mentioned factors:
Stop Getting Excited: Normally it has been observed that the new entrants make money initially and gets excited and start trading bigger. Thus their story of downfall begins. Mostly it has been observed that traders start suffering from a phobia called “FOMO” (Fear of missing out) and hence starts building position right from the word go. During closing hours they are left with no option but to square off their trades in the loss. Hence whether its intraday or positional trade patience is the key if you want to make money out of trading in share market.
Apply Stop Losses: Risk Reward Ratio has to be defined before finally taking a trade. If your target from a certain trade is to make 1000 rupees than your stop losses has to be 500.The ratio of profit has to be double than that of loss. However what traders do is that they will book profits immediately but will not book losses until the broker finally squares off their trade. To learn this art you need to seek advice from the best share brokers in India as this agenda tops their teaching guide.
Play The Momentum: You should make sure that your broker has provided with the best of tools and that you can check the buzzing stocks. Generally stock reacts on news inflows or management announcement. Hence as soon as the news comes and the stocks start moving either way only then you should take an intraday call with the momentum on which the stock is heading. Rather than buying stocks which hardly moves identify some news specific stocks to trade for intra-day.
These are just a few points but are the most important ones and hence should be taken care of. A hardened strategy is what works best in the market rather than feelings and emotions. Choose stock rather than the market is also a key factor in intraday trading. As discussed earlier intraday trading should be more of stock specific than playing as per the market’s direction.