For beginners, the stock market can seem to be a very intimidating space. it could either fulfill your dreams you’ve dreamt for long or could push your plans year behind, and all of this could just happen within a couple of hours on any day.
What is Intraday Trading?
Intraday trading basically is buying and selling of stocks on the same day. This happens during the trading hours which are stipulated by the exchange. Essentially, in intraday trading, stocks are bought and sold in large numbers and this is done thoughtfully with the sole intention of reaping profits on one good day, without having to commit to stock for long.
What you need to remember about Intraday trading
Intraday trading may seem to be a risky affair, but that is only the case for those who stand uninitiated. For the initiated, it is a good bet and every champion of intraday trading was once a novice.
Here is what you need to know:
- You got to choose four to five liquid stocks or indices to trade
- You must determine your entry, target and exit price
- You have to learn to book profits and exit a losing trade
- Don’t just trade listening to rumours around you. Analyse the market to the best of your information; after all, your money is at stake
- Never trade on a day when you feel unwell. Intraday trading requires you to be vigilant all throughout the day
Intraday trading is difficult but it gets easier with practice and persistence. Never give up learning and never think you know everything about the market. That is when it will surprise you the most.