Intraday trading is all about buying and selling stocks on the same day. You don’t want to take the stock to your Demat account; your main motivation is to profit from the price fluctuation. With the increase in online trading, intraday has gained quite a lot of attention. In this article, we will deal with how you can profit from intraday trading.
- Trade in high volume shares
You should always choose a high volume or liquid shares for intraday trading. By volume, we mean how many shares pass from one hand to another in a day. You should keep your eyes on Nifty 50 stocks or Nifty Next 50. These stocks have very high volumes and can give you a decent return intraday.
- Do your research
Research is very important to earn money from the stock market. Moreover, you should do your research. You should not depend on someone else. You should not risk your hard-earned money in stock tips. Learn all about technical analysis; analyze your stock; and, if you feel it has the potential to give you even 1% in intraday, you should take that bet. Remember you should not be too greedy in intraday trading. 1% return on investment is more than enough. If you can get 10% ROI monthly you are a great trader.
- Have your entry and exit fixed
So you have to find out which stocks to trade. Now before entering a trade you should know about your entry and exit. You should know when you should enter the trade and how much profit you want. You should have a clear exit point in place. This exit point maybe 1% ROI or 0.5% ROI, but it should be there. Moreover, you should believe in your trading system. You should not force a trade. If your analysis allows you to trade then take it without any fear and exit from it without any greed. To make money in intraday trading you have to think like a robot; no emotions.
- Stop loss if your best friend
It is not that the stock market is a bed of roses. Things may not go as per your plan. This is a market and it tends to surprise you most unexpectedly. This is where stop loss comes in. You should not sit on a trade just because you hope to profit from it. Hope and god do not work in the market. You should have a stop loss. Stop-loss is a price at which you will exit your trade if it turns against you. This way you can cut on your losses.
- Trend is your friend
In your initial days, you should not trade against the trend. If the stock is in an uptrend, you should buy it and if it is in a downtrend you should sell it. After you have gained sufficient experience in the market you can trade as you want.
To sum up
The stock market needs patience. You should be able to spend some years exploring this. Open a trading account with 5paisa and start your journey.
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