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.

Earn 3000 per day in Stock Market

Remember earning 3000 rupees per day in swing trading is possible with little capital & strategic plan of action.

More importantly, if you are unable to change stock positions over a period when necessary can dilute your funds and empty your capital.

It can happen when your positions are not in tune to the direction of the trading signals. Swing trading involves holding positions from a few days to a few weeks that means you have sufficient time in making decisions.

But if your decision making goes wrong then the positions held by you shall get wiped out causing greater financial harm.

Use Stop Loss

To make accurate decisions on positions and apply stop loss to cap losses if occurs, you must take help of time frame analysis. It enables you to capture the swings during a time frame and for swing trades you are encouraged to take a 4-hour time frame. And, the swings represent change in the uptrend and downtrend of price fluctuations.

Fundamentally, you are advised not to take risks by investing huge trading capital. Your investment on a single trade should be only 1% to 3% of the trading capital.

If you plan to enter a trade by investing INR 3000.00 on stocks then your trading capital must be at least INR 300,000. But still, if you plan to earn INR 3000.00 without investing then it can happen by obtaining leverage from your stock broker.

In leverage, you will be buying stocks by borrowing funds from your broker to make good potential returns. And, if the comforting leverage is of the ratio 2:1. It means, you can invest only INR 3000.00 and hold a stock position/positions of INR 6000.00.

If the market swings against your favor by 50% then you will not only lose your capital investment of INR 3000.00 but also the investment put in by your stock broker, i.e., INR 3000.00. Therefore, you are in debt to your stock broker.

Experts Advice for You:

If you are a beginner or a less experienced investor/trader you must never dare to take such aggressive steps. Then, what should you do?

Although you are less skilled at this point you get associated with a good trading system. They issue accurate entry and exit points to make a decent money with a low risk profile.

You must develop expertise in analyzing market trends, identify the best stocks of various sectors.

You should also equip yourself with the technical indicators, and chart patterns to locate the best option call/option put positions. Never forget to place stop-loss that may protect your trading capital during high volatility.

Last but not least, you must cautiously move positions through proper monitoring of stock movements.

How to Choose Stocks for Short-Term Investment

As of my knowledge on Indian stock market, I can provide some general advices on choosing the best stocks for short-term investment.

Follow the below-given procedure before choosing stocks for investment.

Invest in Blue-Chip Stocks:

Blue-Chip stocks are companies with a proven track record. These stocks have steady returns and considered safer for investment.

Choose Leaders in the Sector:

Look for leading companies in sectors with steady growth potential. For instance, technology companies, healthcare, and renewable energy sectors have shown significant growth in the recent years, choose the blue-chip stocks in that particular sector.

Dividend-Paying Stocks:

Consider stocks of companies that regularly pay dividends to the shareholders. These stocks can provide a steady income stream in addition to potential capital growth.