Intraday trading means buying and selling of the stocks on same day! Means we are looking for a quick money and Quick money comes with a risk.
There are few rules of Intraday trading we need to keep in mind while doing Intraday trading.
Trade only In best Day Trading Stock
Best trading stocks includes High liquidity, Reasonable volatility, Sector Specific Stocks, Stock with good correlation with overall market.
Right Entry, Exit and Stop Price:
The first and foremost important trade require to set an enter price, exit price as well as escape price. This is most important part while being in Intraday trading!
Trade with money which you are ready to lose
Day trading is the highly risky option in stock markets. You can lose money within few minutes of wrong trade. You can even loose more money depending upon about how much you have leveraged your position.
Market position with Limit orders Instead of Market Orders
The most desirable and basic day trading rules for first time traders or beginners. A market order is a default trading option that involves buying and selling of equity immediately at current price.
Perform Research and Analysis
Research and analysis is the key to get success in stock markets. You can beat the traders if you are well informed about the given script.
Keep all the records of Trades
You should keep all the records of the trade performance report. This will help in measuring the effectiveness of your trading strategies.
Don’t do trading Daily
You don’t have to trade everyday just because markets are opened. You can only make your position when you like to do.
Keep Emotions aside
Emotional stability is important to outperform during day trading.
Trade only in Few Scripts at a time
The most common basic trading rules for traders is to reduce the risk of your stock investment.
Use Strict Stop loss order
Stock market are highly volatile in nature. So, use right stop loss order and cut your losses.
These are some rules one needs to follow while being in Intraday trading!
Few more important things we have to keep in our mind:-
1) Do not trade immediately after the market opens, trade after 15 to 30 minutes.
2) Follow the trend. Never trade against the trend of the day.
3) Never average loosing trade.
4) Book realistic profit or keep trailing stop loss.
5) Control greed and fear and don’t do revenge trades.
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How did you find multibagger stocks
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How do you prepare for Intraday trading everyday
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Is day trading profitable or not
