Important factors to be considered in intraday trading

Intraday Trading is different from long-term stock investment. Day trading involves trading a stock for a one-day only.

 

Intraday trading involves purchasing and selling of stocks within the same trading day. Here stocks are bought for the purpose of earning profits by harnessing the movement of stocks and securities. Thus, the swings in the prices of the stocks are harnessed to earn a better return from the trading of stocks. Day Trading is different from long-term stock investment. Day trading involves trading a stock for a one-day only. It is risky as compared to the stock investment.

The most important points to be remembered in Intraday Trading are following –

 

1. Patience

The day traders have to keep patience until the right time. Just wait for the right market conditions before start trading. There are times when it is better to stay out of the Market and just observe from the sidelines what is actually happen. It will prepare you for future risk.

 

2. Identify strong stock trend

This is the most complex task in the stock market. One mistake in judgement the market means big losses. Also, keep a point in mind that in the highly volatile market, each trend is for short term, it makes the stock selection job more difficult for a trader. Sometimes, the stocks that an investor identified for short selling rise on the day of trade. Therefore, it is very important to identify a strong trend in the stock to make a good income. For better results, a trader should refer stock tips, intraday tips or more to get better guidance related to trading.

 

3. Initiate early morning trade

It is observed that initial 20-25 mins of the morning were highly volatile trade. Generally, traders get suggestions to trade after 30 mins of early trade. Most of the stocks trend is established within 30 mins of the day. In stocks with a high trend, a profitable position can be taken within few mins and a trader can make more profit in such stocks.

 

4. Detachment

A trader should focus on the technical part rather than on the money only. If your trades are technically correct, the profits will surely achieve. Just remain emotionally detached from the market. Avoid taking any decision in the short-term excitement. If the trader is continually checking prices of stocks or market charts. It is a sign that you are a little more unsure about your trading strategy. So don’t be too emotional, just keep calm while trading.

 

5. Limit the loss

Always use stop-losses to protect your money. When the stop-loss is activated, take a decision immediately. The biggest mistake that most of the traders make is to hold a position that is falling, hoping for a regaining. Remember that falling stocks have a habit of declining below a point that you expected from that stock. So always limit your loss to protect your money.

 

It is human nature, I don’t know why but most traders and investors ignore these key rules when they start trading. The main factor in intraday trading is to control your emotions and avoid running along with the crowd. Take suggestions from financial market experts by taking their trading tips just like commodityArticle Submission, forex or binary option trading tips in order to avoid trading mistakes.

 

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You may have heard well about stock market trading and how it can help you earn great profits that can serve as a means to supply your financial needs. A lot of people may have heard about it as you have. The only problem is, there are a lot like you that may have not been able to pursue in making an investment in stock market trading.Although stock market trading is known to yield great profits for some people who have invested in it, the lack of information and understanding is what keeps a lot of people from investing in this kind of market trading. In the past, it has been known that only great companies and rich investors participate in stock market trading. Now however, through the use of the internet, virtually anyone in any corner of the world can participate within the stock market and invest with a minimum capital of five hundred dollars to start with. With an amount of five hundred dollars and a good internet connection, you can create an account that can allow you to participate in purchasing and selling off stocks.When you decide to participate in the world of stock market trading, you must first open an account with a brokerage company or a broker who can also provide best forex trading. Brokers will assist you in your trades within the real stock market. They are the ones who execute your trade orders that you have set in the market. There are two different types of brokers in stock market trading. The first one solely executes your trade orders in the stock market. They are called as discount brokers. The other type of broker are those that offer extra services like providing you with charts and tools that can aid you in making trade decisions in the stock market. These are called as your full service brokers and offer other things like forex trading tips. If you are just a beginner, opening an account with a full service broker is much more advisable, as they can help you learn the ropes through stock market trading.

Article Tags:
Stock Market Trading, Stock Market, Market Trading

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ABOUT THE AUTHOR

Rhab Hendrik is an author who shares his best forex trading articles with others. He can always be counted on to bring you the latest forex trading tips and detailed forex trading strategies.

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