Intraday trading is riskier than making an investment in the regular stock market. It is therefore essential for everyone including beginners to know some useful intraday tips.
This would help them to trade strategically thus increasing the chance to earn more profit.
Intraday trading tips from advisories are temporary in nature. At the same time, you cannot be ever sure whether they are accurate or not.
Most of the time, such tips turn out to be either fake or of low quality.
For better support, here are some of the intraday tips that are enlisted to help traders to succeed and reap the good profit.
Intraday Trading Tips
If you are into intraday trading or swing trading, you must understand the importance of time and that is why we have listed some of the intraday trading tips that will help you to place your trades within timeliness, with limited risk and with a potential of high returns.
Here is a quick view of these Intraday Trading Tips before we start explaining them:
Do not take risks beyond the risk-taking abilities
Intraday Trading is a very risky and challenging domain. The securities are bought and sold within the same trading day and the positions are closed before the day ends.
Therefore, any action that needs to be taken has to be taken within the day. It requires constant attention from the intraday traders. They have to remain attentive to all the market movements and trade accordingly.
Intraday traders also need to be up to date with the national and international happenings and their impact on the prices of the securities.
Along with that, the day traders have to keep on learning every day and keep on evolving with every trade.
They learn from their profits as well as their losses and adjust their strategies accordingly.
All this takes a lot of patience and dedication and it takes months and sometimes years to be a successful intraday trader.
Let’s talk about some of the crucial intraday trading tips for beginners that cannot be avoided by any means.
Intraday Trading Tips India
Intraday traders have many tools and techniques at their disposal to help them analyze the market, study the historical trends and make informed decisions.
Trading software, charts, and technical indicators play a crucial role in helping the intraday traders make the correct and profitable moves.
Along with the available tools and software, it is also required for the day traders to use proper, tried and tested intraday trading strategies and follow certain rules.
Some very important and Free Intraday Trading tips have to be kept in mind by the traders to ensure that they stay focused on their objective of making profits and do not lose their vision.
The 10 best Free intraday trading tips are as follows:
1. Invest only in the Liquid Stocks
Out of all the possible Intraday Trading Tips, a very important tip to be successful is to trade in liquid stocks.
Liquidity is what intraday trading is heavily based on, when there is no liquidity there is no day trading.
While choosing the stocks for intraday trading, the first preference must be the liquid stocks that have huge trading volumes, such that large quantities can be bought and sold without affecting the price much.
To make good enough profits, the trade size has to be significant and the liquid stocks provide the required volumes and the position size.
If the shares chosen have low liquidity, then they may need to be held longer due to low trading volumes.
So, for intraday trading, the stocks chosen must be large-cap stocks, with high liquidity instead of mid-cap or small-cap stocks or penny stocks.
2. Identify the market trend and follow the trend
To be profitable in intraday trading, one of the useful Intraday Trading Tips is to always follow the market trend.
This is, in fact, the most difficult part of the job.
This is where the entire learning, judgment, analysis, and instincts are put to test and the intraday trader predicts the market trend and makes suitable decisions.
Even when the trend has been identified, due to the volatility of the market, the trend is short-lived and may begin to reverse soon.
Therefore, an intraday trader needs to identify the trend quickly and follow it. The trend can be an uptrend or downtrend.
To understand the stock trend, the intraday traders must analyze the open price, volume, delivery quantity, delivery percentage, price movement, volatility, and range.
Also, an intraday trader must choose the stocks that follow the trend of a sector or an index, for instance, the Nifty and the Sensex trend.
This will make it easier and more accurate to predict movements and trends and take profitable positions.
The intraday traders must not move against the market trends, and if the market moves against the expectations and predictions, you must exit the positions to avoid huge losses in intraday trading.
3. Use Stop-loss judiciously
Traders, while using these Intraday Trading Tips, must keep in mind that they have to fix the price at which they enter the market and the price at which they exit.
Fixing these prices in advance helps in protecting the traders against unprecedented losses.
It is also necessary to book the profits and losses at the right time, neither too early nor too late.
If the intraday trader is affected by fear, he may book the profits too early and lose the potential to earn more; however, if he books the profit too late, affected by greed, he may lose all that he earned.
So a fair balance is required to remain at optimum levels.
For the same reasons, stop loss should also be fixed and intelligently used so that the trade is automatically executed as soon as the price falls below a certain level.
This helps to curtail unexpected and huge losses.
Once the stop loss is triggered, the trader must exit the trade and not try to adjust the stop-loss price at all.
When the profits are being made, the intraday trader must keep moving the stop loss price up, so that whenever the price moves up the stop loss also moves up and the trader can get maximum profits.
4. Do not Overtrade
One of the Free Intraday Trading Tips to be followed by all the intraday traders to be profitable is to not overtrade.
Multiple trading sessions can be very harmful, even seasoned traders do not do more than 2-3 trades a day.
This is because intraday trading requires 100% concentration, hence to make sure that proper attention can be given to each trade, the number of trades must be kept less.
A disciplined intraday trader goes slow when the market is choppy and may even not trader when the market is horizontal and does not trade until the market is stabilized.
Make sure that the range of movements of prices is high enough so that the rewards exceed the potential risk. Also, the volumes of trade must be kept constant.
Till the time a trader is satisfied that he has learned a lot, the number of lots must be kept constant and not increased and decreased drastically.
5. Do not trade based on rumors and Media news
Then, out of all Intraday Trading Tips, this is a tip of paramount importance.
Intraday trading is the kind of trading that is to be done based on technical indicators and predictions based on some fundamental indicators and absolutely not based on rumors.
Based on the same rumor, some analysts recommend buying security and others recommend selling the same!
This becomes very ambiguous and unclear concerning what to do.
An intraday trader must depend on his own skills and analysis, his own strategies and his own tools and indicators to make decisions on whether to buy or sell and when.
There may be breaking news, but the reaction of the market to the news is unpredictable. The prices go all over and it is impossible to identify the trend.
It may be very tempting to take on such trades with the anticipation of huge profits, but for a successful and level-headed intraday trader, it is advisable to trade only he is sure of the trend.
6. Do not be an Investor
An intraday trader must have his priorities right. He must know the reasons why he is getting into intraday trading and must stick to them.
Intraday trading is not about investment; it is about making quick profits as a result of volatility in the prices of the securities.
Both strategies are distinct and require different approaches.
A stock that is worthy of being purchased for investment due to long-term gains, may not be suitable for day trading as it does not have the potential of short-term outcomes.
So, another valuable Intraday Trading Tips is to not consider day trading similar to an investment in any form and treat the circumstances accordingly.
7. Keep analyzing and learning:
Learn, learn and learn more!
This is one of those intraday trading tips that separate the successful intraday traders from the unsuccessful ones.
The intraday traders who either consider that they have learned it all or those who do not have the will and determination to keep learning find it very difficult to sustain in the intraday trading area.
Intraday trading is all about analyzing the market, analyzing each trade, each mistake, and each gain to help the trader to learn more each time.
Learning never stops. Never forget that! Never!
It is rightly said that more than the profits, the losses provide an opportunity to learn.
A successful intraday trader keeps a journal of his everyday trades and analyses them at the end of each day to understand what he did, what went right and what went wrong and what could he have done to trade better.
In-depth research must be done before starting the trades for the day.
8. Do not get affected by Emotions
The holy grail of intraday trading tips is to not get affected by emotions.
This is a tip for intraday trading that cannot be emphasized more.
To become a successful trader and make good profits, one must keep all the emotions at bay, including greed and fear.
The overt expression of any of these emotions can cause enormous losses to the intraday trader and also limit his profits.
Fear can make the trader not take risks, which is a prerequisite for intraday trading, and this may lead to the trader exiting positions when there is still more potential to make profits.
At the same time, greed can make the trader keep holding on to the positions even when the trends have started reversing and may result in huge losses.
Similarly, an intraday trader must not be affected by the ultimate profits and gains.
Profits on one day must not make the trader overconfident to indulge in risky trades and losses on the previous day must not make the trader fearful and apprehensive of making trades that could otherwise have given him good profits.
It is all a game of mental balance and keeping the balance intact even when the circumstances are not favorable.
An intraday trader must move above the sentiments and have a practical approach towards trading.
Also, to maintain a good work-life balance, the emotions must not be carried home, be it the happiness of making profits or the sadness of losses.
9. Do not take risks beyond the risk-taking abilities:
One of the most critical intraday trading tips is to not be reckless.
The beginners who end up making good money in a short time may come under the impression that the day trading market is the best way to make quick money.
This sometimes may end up putting huge amounts in trade, which may result in drastic losses.
So, for a seasoned and successful trader, it is very important to be aware of losses and put in only the amount of money that they can afford to lose.
Profits, when realized, must be kept away as cushions and not stowed back into the trades.
Such intraday trading tips prove really fruitful for all kinds of traders.
Owning a cushion may lead to less stress while trading and may prevent unprofessional decisions.
Also, various ways and techniques can be used for risk management which includes stop-loss, marketing the positions with limit orders and choosing the securities wisely and after proper research.
10. Stay focused
Intraday trading involves buying and selling securities within the same trading day. All trades are squared off at the end of the trading day.
There is so much volatility in the intraday trading market that there is not much time to lose and not much scope to lose focus.
Intraday Trading Tips included for survival in intraday trading is to stay focused. Intraday trading does not provide the opportunity to the traders to lose focus even for a single minute during the trade.
The intraday trader has to be on his toes and be aware and informed of everything happening around that can influence the trends and his trades.
An efficient intraday trader will not be distracted by any personal or professional occurrences and will keep a hawk’s eye on his trades from the beginning to the end, with equal dedication.
These Intraday Trading tips must be considered and kept in mind to ensure that the ultimate objective of making profits is reached and the intraday trader is able to establish himself as a successful one!
Intraday Trading Tips For Beginners
Intraday trading is not about investment, in fact, it is all about earning quick profit due to the highly volatile nature of the market.
However, for beginners, it is always challenging to do intraday trading strategically.
Here, are some of the golden tips that one must opt for planning to get into the intraday trade.
Consider Timings of the Market
Before getting into the intraday trade, it is essential to know the right time when one must invest. It is generally good to avoid trading during the first hour when the market opens.
Initiating trade between noon to 1 pm is an excellent period that gives more possibility of earning profit.
Every trade goes the best when you have a strategic plan to implement, and the same goes for the intraday trade as well.
To plan for intraday trade, determine the entry or exit prices, using stop-loss trigger price, etc.
Also, on reaching the target price, the users are advised to close their positions and avoid greed of earning more profits.
Exit Position Under Unfavorable Condition
If the market conditions do not seem to be favorable, in such case it is always better to exit the position immediately.
This reduces the loss and gives you a chance to save your investment.
Invest in Small Amounts
Beginners generally got influenced by the profit they earn in intraday trade.
But going with the flow in the stock market is never a good option.
In such a situation, beginners tend to lose their investment.
It is therefore always advisable to invest in smaller sums that are affordable to lose thus preventing you from facing financial difficulties.
Choose Liquid Stocks to Invest
For every beginner, it is good to understand the basics of the stock market. For this, it is necessary to explore the market.
For a good start, you can choose to trade on liquid stocks (the stocks that have high volumes in the intraday market).
With this, you would be able to exit the position before the trading sessions end.
Close All the Open Position
It is commonly found, that most of the trader get tempted to take their delivery of position if their targets are not achieved.
This is the biggest error and therefore it is crucial to close the open position even in the case of loss.
Day trading is not meant for those who are employed in a full-time job as traders are required to be focused to analyze the market in order to make the right calls.
Intraday Tips App
No wonder, technology has brought more comfort in everyday’s life. The biggest among them is the number of mobile phone users.
A large number of users influence developers to create apps that help day traders to do trading efficiently and conveniently.
Intraday Tips App is introduced with the objective of bringing every detail of day trading on fingertips.
Here are some of the apps that you must consider for your day trading.
1. Stock Twits
The app is similar to Twitter that is loved by almost every other trader involved in day trading.
On installing this app, you will get feeds from beginners and expert traders from the reputed companies.
Also, it provides feeds from media outlets.
Apart from the text feed, one can view videos and charts related to the technical analysis.
In all, this app is highly useful for traders who are interested in day trading.
For traders who are looking for an easy app that assists them in day trading, then this is the one you must go for.
It is simple, easy to understand and helps traders to invest in livestock, metals or the energy sector.
The best part of this app that influences many people is that it does not distract with the feeds or other irrelevant information to the user.
It is the most common mobile app among traders.
It offers the real-time feeds and has a user-friendly interface.
It keeps everyone updated with all the related news of the stock market.
The app offers analyst ratings, thus encompassing thousands of stocks.
This analysis help traders to trade in a highly efficient way.
In all intraday trading involves the settlement of trade on the same day. Many traders following the right tip are able to make a good profit but the best way to keep track of the market trend in order to earn the profit.
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