Basic Rule For Intraday Trading | Beginner Tips For Intraday Trading | By InvestTherapy
Basic Rule For Intraday Trading:
Most of the traders, especially beginner lose their money while Trading in high volatility and Liquidity in stocks. Generally, loss occurs for traders' fear and greed. Beginner loses their money in Intraday for lack of knowledge.
Below Are some Rules for Intraday Trading:
- Time the market
- Get a strategy
- Exit your position when the price goes against your expectations.
- Start Trading From Amount
- Always trade in liquid stock
- Close all positions before market close
- Spend Your Time for Analysis
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Intraday Trading Tips For Beginner:
Intraday Trading involves high risk besides delivery trading. Many traders lose their money in Intraday because of a lack of knowledge. Below Are some Intraday Trading Tips For Beginner:
Timing The Stock Market:
Expert always suggests individual traders not to trade in the first hour when marketing opens. Taking a position between 12 pm to 1 pm increases the possibility of earning profit.
Plan a Trading Strategy:
Whenever Traders take a trade it is Important For them to have a clean Trading strategy of how to do Intraday Trading. Always Decide your entry and exit point before taking the trade. Using a stop-loss trigger is one of the important Intraday tips to Reduce the loss in your position. Once the stock price achieves the target price traders are advised to close there position and not to be greedy and expect the higher Profit.
Close Your Position When Price Goes Against Your Expectation:
If the market condition is not favorable for your position, it is advisable to immediately exit and not to wait for the stop-loss trigger to be activated. This type of Intraday tips helps Beginner to reduce their losses.
Always Trade With Smaller Amount:
Stock Market is volatile and it is so difficult to predict the trade even for professionals. In this situation, Beginner Traders can easily lose all their money. This is another important Intraday tips is to trade with a smaller amount that user can Afford to Lose. This will help beginner traders not to face financial difficulties even if the market is not on there favor.
Choose Liquid Stocks For Trading:
There are hundreds of stock listed in the stock market and Traders trade only Two or three liquid stock. Liquid Stocks are those stocks that have High volume in the Intraday market. This type of Stocks allows traders to close there position before the end of the trading session.
Close all Opening Position:
Some traders take delivery of their stock when their targets are not achieved. This is one of the biggest mistakes of traders and it is Important to close all open positions even if Traders face loss.
Spend Time in Market:
Spending time is another important Intraday tips for Traders when analyzing the market. Traders must monitor the market movement from opening bell to closing bell. It is Important For making the right call.
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