Apart from regular savings Intraday trading can help you make money. No longer there is a genie needed to fulfil your financial needs. For a common man, regular savings may not suffice when the levels of inflation tend to be at their peak. Trading in share markets or mutual funds are a few of the ways by which we can make money.
Let us cast our attention to a particular form of trading known as intraday trading. This is commonly a strategy used in buying and selling stocks. Such a strategy is to be used only after conducting a proper amount of research. One thing that you need to be aware that trading is not an easy task
More about intraday trading
. Intraday is about buying and selling shares on the same day.The prices of shares keep on fluctuating during the day and traders try to cash in on the fluctuations of these profits. This tends to occur on the same day before trading closes for the day.
An example is supposing a stock opens at Rs 1000 in the morning. By noon it reaches Rs 150O and you end up selling the same. Hence you end up making a profit of Rs 500 which is referred to as intraday trading.
The best intraday strategies
Intraday trading is all about understanding the market. A good strategy is going to work only after technical analysis, practical execution and proper risk management. For a beginner who is making a foray into trading, such a strategy can be used.
With regular patience, you may become an expert in the same. When you are undertaking intraday trading, it has to be backed up with risk and stop-loss limits to prevent losses. There is a need to find a trading style that matches your temperament and requirements.
Choosing liquid shares
The first and most important tip for intraday trading is to choose liquid shares. Be aware that these are the shares that you need to sell at the end of the day. It is also suggested that you choose two to three large-cap shares that are liquid. High liquidity means that the shares can be purchased or sold at any time. All these aid in capturing any possible gains that emerge from massive price activities in a single day.
Choose transparency
It is better to invest in stocks of a company which provides the marketplace with relevant information about the activities of the company. Once you consider all these aspects the choice becomes an easy task. If you conceal the important information it may lead to misleading information where the decision making may be hampered.
Quality organizations that have straightforward business procedure are the ones that should be considered for decision-making. There is another point to consider for intraday trading and this works out to be a stable management.
So if you want to venture into intraday trading the best platform is 5paisa. They have quality experts on board who will guide you.
