Intraday Trading Guide For Beginners
“Trading effectively is about assessing probabilities, not certainties.”
The term intraday simply means “within the day” and also named day trading. Hence, the intraday trading refers to buying and selling of trading stocks during regular trading hours in a single day. Intraday trading is based on price movement. It means you buy shares when the price is low and sell them when the price rises.
Got the idea? Now, if you wish to start with intraday trading, read on to understand the basics of it and how to begin with
How to do you start?
Before you start trading, you should keep pace with the latest stock market news, events happening and get to grips with stocks you are looking forward to trading for. Scan business news and visit some good financial websites. So, do your homework first! To begin with Intraday trading, you need to Open trading and DEMAT account.
Start Small
As a beginner in intraday trading, keep it simple and small. Focus on only a few stocks during a session. It’s easy to understand the process. Once you understand the process and get good making, branch out.
When to trade?
One of the most frequent questions asked is, “when to trade”? Well, timing is crucial for intraday traders. As a day trader, make sure you can adjust your timings easily because the different time zones can make you miss the best entry signals of your day. Experts suggest maintaining consistency and trade during the same hours of daily.
For stocks, the first one to two hours after the open, and the last hour before the close.
For futures, the best day trading opportunities are from 8:30 am to 11:00 am EST. It starts a bit earlier than stocks.
For forex, 1200 to 1500 GMT sees the biggest price hikes, so this is a popular and active time for day traders.
Define your target
As a new trader, it is important to have a daily trading target to prevent yourself from being disheartened (in case of loss) or being too greedy (in case of profit). Try to understand the risk-reward ratio and set your profit & loss price target. Stop for the day once you hit the cap. Track your daily records in a spreadsheet that will help you identify the gaps, any pitfalls, and also guide you in minimizing losses next time.
The risk factor
There is no trade without the risk involved. Day trading is risky for beginners as it requires to watch the market regularly and closely. Also, you need a good understanding of daily charts & technical terms to make the right decisions. Therefore, it is suggested for beginners to keep a risk-reward ratio and stick by it. This will help you to “lose less and win more”. “If you personalize losses, you can’t trade.”
And finally the right broker
Choosing the right broker should be the wisest decision when it comes to day trading. Brokers facilitate your trades, provide you with market research, and suggest you the best investment plans. In return, they charge you a fee or commission on your trade. Open your trading account with Arihant Capital and get the best services.
A final word to the new traders, as Euclid wrote, “there is no golden rule to the Geometry” similarly there is no golden rule to excel the day trading. Only practice and a better understanding of the market can make you a good intraday trader. Always remember, don’t rue over the losses and don’t get carried away over handsome profits. It’s day trading get your profit and walk out!
