An equity investor buys stocks with the intent to invest. But unlike equity investing, intraday trading is all about buying and selling your shares and securities on the same trading day. Intraday trading revolves around taking advantage of the stock market movement throughout the day and making a good profit along the way. So in order for a day trader to make a profit, it is vital that he or she learns to choose the right stocks. Intraday trading is a lot riskier than regular trading since there is a very good chance that a day trader may not end up making any profit at all. Everyone wants to make some profit and this is when some intraday trading tips come in handy. In this article, we will be telling you about some intraday trading tips and tricks that can prove helpful while day trading.
Intraday trading tips come in various forms. Each financial expert may have a certain way of dealing with the market, and the tips may vary according to it. Traders on the other have different goals and they often choose to use the tips that suit their cause. But there are a few tips that work just fine for everyone. Here is a list of a few intraday trading tips for the next time you try your hand at it.
- Always make a plan
Never, we repeat never, invest your money in the market without a plan of action. This is the most important intraday trading tip you can get. Making a plan essentially means, know what you are buying or selling, how much you are trading in or when is it that you are going to trade in. If you invest in the market without a proper plan, you might as well give up on the hopes to make any real profit.
- Risk Management
Risk management is also an important tip when it comes to intraday trading. Developing a risk management strategy is an important step when you decide to trade. In doing so, you will only lose what you can afford to. A sound risk management strategy is vital for a long career as an intraday trader.
- Make the most of technology
In these times of high competition, any upper hand over your fellow traders is welcome. Utilize all the resources available to you in order to stay ahead in the race. There are a lot of ways to analyze the market, like stock charts and indicators. Make the most of them. A fast internet connection can prove to be a boon in times like these.
- Maintain a trade journal
Learning from our mistakes in the past is the best way to move forward. This is an invaluable tip. Keep a record of all your previous trades in order to learn from them. You can use the data to recognize problems and alter your plan, allowing you to make smart decisions in the future. Trust us, you definitely will not regret maintaining a trade journal.
- Lead with facts
Humans have a tendency to make decisions based on their emotions. It’s not such a great idea while trading in the market. Make sure your plan is based on, supported and tested with facts. If you ever decide to make a trade without learning the facts just because it feels right, don’t, it’s a trap.
- Know when to stop
There are going to be times when your strategies simply won’t work. There is no point in throwing your hard-earned money at it if you know it isn’t working. The smarter move is to take a step back and strategize again. Not knowing when to stop is just as dangerous as not making a plan.
Intraday trading may seem difficult for you but if you follow the tips mentioned above, you are going to be just fine.