Intraday Trading is a method of trading in the stock exchange where investors or traders buy and sell the shares equity on the same day. For example, suppose you buy 30 shares of XYZ company in the morning and hold them for 2 or 3 hours and then sell all the stocks before the stock market close. You can make a huge amount of money if know the how to do intraday trading and its important rules, and you can make a big loss of money if you don’t know the rules. Investing in Intraday trading is more risky than investing in stocks so that in=vest only the amount you can bear if you loss because an unexpected movement or changes can wipe out your whole investment within few minutes. For example, the Satyam Computer share cut down approx 80% from Rs 188 to Rs 31 in one day in 2009. That is why; we have explained 5 important rules of intraday trading in this article.
Always buy highly liquid Stocks: All the day investors of traders should square their positions at the end of the day trading, and this is really easy if they are investing in large cap companies, index-based stocks that are highly liquid and buy and sell in large volumes every day.
Use Stop Losses trading: It is an essential part of intraday trading, and is at a trigger for selling stocks if the price of the share moves beyond a designated limit. For instance, if any investor buys 10 shares of ABC Company at Rs 540 per share and set a stop loss at Rs 720, and if the stock falls to Rs 700, then the investor stock will be sold. Stop losses trading also helps traders to protect them from any unwanted or unexpected losses in the Intraday trading procedure.
Trade only in 3 or 4 stocks a day: Remember this proverb,” Rome cannot be built in day”. On traders either experienced or new cannot make his money double in a single day trade. Therefore, don not go for long objectives, it is good to choose 3 or 4 stocks at a time, and you can make a big profit by setting small targets for them. Most of the successful intraday traders have been following this strategy for getting highest benefits for stock future tips.
You can also follow few important intraday trading tips and strategies:
- Know about all the companies and their share price status
- Try to purchase shares of different companies
- You can concern with a stock expert before investing to day trading
- Fix your budget
- If you are new in stock trading then starting with a small amount to reduce risk
Remember, for successful day trading, you need to be good knowledge, experience and must be familiar with some important rules and tips including bank nifty tips that are incorporated in this article. We are hoping you will be satisfied with the given Intraday trading rules.
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