Intraday Trading got a boost in share market due to its quick result, immediate payouts may make it sound promising but there are several risks associated to it. It is advisable to take knowledge and mental makeup and put your right steps to become a successful Intraday Trader.
Investelite Research is here for backing you to have successful intraday trading. Follow these 7 rules to become successful Intraday Trader.
1. Don’t fall for Greed :
Never fall under the trap of greed. “Greed is not a financial issue. It’s a heart issue in actual“. If you do so, soon you will end up with the huge loss. A successful Intraday trader primarily focuses on managing risk rather than on greed to earn more profit. The risk is what you can control, not return. To become successful in Intraday trading focus on your trading position and should limit strict stop loss. They calculate proper stop loss that helps them to get right exit point when the trend reverses.
2. Develop Habit Of Rapid And Diligent Decision Making:
The market is volatile and Intraday trading is for short and buy and sell happens within a day. Quick decisions with diligence are required to deal. Smart intraday traders are quick to shift to a phased approach to buying when markets are volatile. They focus is on reducing execution and statutory costs to the bare minimum.
3. Trade In Stocks Following Their Sectors Trend:
It is important to choose the stocks which follow their respective sectors trend. As to understand the trend of the whole sector is much preferable than a single stock trend understanding. This decreases the chances of losing money and successful Intraday traders usually apply this strategy.
4. Choose Liquid Stocks:
Stocks which are liquid are easy to square-off before the day ends. Also, it is easy to buy and sells more units of liquid stocks to book better profit.
5. Follow Technical Analysis:
Technical analysis helps you in predicting the price movement of the stock based on the calculations, charts, and history. Successful intraday trader set a trading plan, keep a backup plan of action and execute their trades. They follow a discipline and it is their way of quality of life.
6. Avoid Movement Against Markets:
Most of the stocks largely follow the market trend, where most of the stocks’ prices could be seen falling during a falling market until there is a strong research-based analysis is done in the movement against markets, doing it is not favourable most of the times. Successful intraday traders never try to beat the market nor predict and outperform. They always ride on the side of momentum.
7. Keep Updates of Events:
Price of stocks depends on the market, economic and socio-political events. Thus, keeping an eye on them will help you know the causes behind the fluctuations and enable you to take better decisions after due analysis.