Intraday Trading Tips for Beginners

Are you already in stock trading? If not, it is a good time for you to start trading and make quick profits in volatile markets.

Yes, I am asking you to consider Intraday Trading and move on to earn a relatively higher return in trading than investing in Bank Securities, Bonds, etc.

If you are a beginner then making a small investment can provide you relatively great returns when you adopt a perfect trade plan.

You can feel day trading to be troublesome as it involves high risks, and a lack of knowledge can cause a huge loss in trading.

I recommend you follow the intraday trading tips to establish a smooth execution of your trading plan and make better earnings.

Day Trading Tips for Beginners:

Technical analysis of the day trading in stock markets helps you realize the performance of the share fluctuations during the day trading sessions.

You must wait for 15 minutes after the opening bells of the stock markets. The market operates in high volatility and most of the trade decisions are the outcome of the previous day’s market timeframe and the current day’s market sentiments.

The stock volatility is high from 01:20 pm onwards and from thereon until 03:30 pm you find heavy traffic involved in buying and selling activities.

You must take guidance from stock brokers and prepare performance charts in the form of bar graphs, candlesticks, etc.

You must evaluate the 1-minute candlestick chart, and 4-minute candlestick chart to assess the right timing for making an entry and exiting before the closing bells of the stock markets.

Adopt multi-timeframe analysis that involves the previous day’s timeframe and the current day’s small timeframe analysis for more precise results.

Make use of stop loss in this highly volatile market conditions in day trading, you may lose your earned profit component if the stock prices drop down rapidly.

And, by applying the stop loss condition, you can control the losses to a greater extent. Your stocks get instantly sold the moment the stock price falls below the stop loss value.

To reduce the loss, you can set your stop loss at a price that is three times lower than the price you wanted to close for profit booking and it is also known as the 3:1 ratio in the trading terms.

Best Time to Cloase the Open Positions:

I would suggest that you must close all your open positions which means you must close your transactions. Just because your set target price is way above the market price, it is not suggestive to go for the delivery of the shares.

You may like to conduct delivery of shares with a view that the transaction will take place on the following day. Even then, your set target price may not reap the desired results through deliveries because the trade plan was set to execute day trading.

If so, you must consider taking the call option for a long term bearing in mind the strengths of the held stock.

Collect Data on Stocks From Reliable Sources:

To analyze the stock markets for intraday trades, collect information from reliable sources, and conduct research for the best stocks for option calls.

Gain Knowledge of Stock Market Terminology:

You must know the terms used in the stock markets such as stop loss, resistance, support, option call, option put, etc. Otherwise, you will get perplexed without knowing what they mean in trading sessions.