Intraday trading is also known as day trading. In intraday trading, there is buying and selling of stocks on the same day. The prices of shares are fluctuating which is why their same-day trading shares earn more profit. The shares are sold before the close of the market and if you do so then the broker of stock will keep the stock in the square-off position or convert that share into a delivery trade.

The main objective of intraday trading tips is to earn profit from the price movement that happens during the day and not to own stocks. Intraday trading is beneficial for the beginner as well as the regular investor.

Strategy for intraday trading

 

There are different strategies that are used by traders for doing intraday trading. Some of them are as follows:

  • Range trading- This type of trading strategy is used for resistance and support levels for determining the buying and selling of the stocks.
  • High-frequency trading- This strategy is issued for exploiting short team or small market efficiency by using sophisticated algorithms.
  • Scalping- This strategy is helpful in earning small profits at small prices that used to change throughout the day.
  • News-based trading- This strategy of intraday trading seizes the opportunities of trading from the heightened volatility around the news events.

 

Golden rules/tips for intraday trading

 

 There are some of the golden rules that are applicable for everyday trading are as follows:

  • Booking the stocks when the targeted price is reached: Intraday trader needs to book the price when it reaches its target. Sometimes intraday traders used to fail to close the open position or if the trader refuses to close the position for earning more profit. it may be risky sometimes.
  • Follow the rules of intraday trading: There are some rules that have been described by the intraday traders’ experts. Some of the rules are that first, beginners need to refrain from selling and buying the shares when the market gets open for the day.
  • Follow the process of choosing the stocks for intraday trading: Most of the time intraday traders buy the stocks according to their volume of trading. The volume of trading means the number of times a share of the company is traded. The resistance level of stock is a handy indicator too.
  • Maintain a level of stop-loss: Before buying the stocks it is necessary to decide the price and how many levels it can get to low before you square off your position. This works as safety for you as well as helps in minimizing the loss.
  • Freeze the price of entry and exit: Before taking any position in the market you need to ensure the entry and exit price of your stock this will help you in creating an objective view.
  • Closing off all the positions at the end: It is important to close all the positions at the end when the market gets closed. Before leaving any stock open for long-term investment it is necessary to get through the stock or do the critical evaluation of the stock. So that it can help in earning greater profit and minimizing the loss.
  • Choosing the right stock at the right time: Before buying or selling any stock it is important to do the analysis of that stock so that there will be less chance of getting in loss and help in earning more profit. You need to choose the right stock at the right time because you cannot assume the timing of changing the pricing of the stocks.
  • Making profits from intraday trading: For the purpose of intraday trading there is a tool that is used for measuring the price of the shares is RSI that stands for Relative Strength Index using which evaluation of the stock prices can be done.

Another method of doing the evaluation of stock is that by analyzing the present data and history of the share to understand the value of the sare and when the demand of the share is low, prices will also be so it is easy to buy it and can be sold when the price gets higher.

 

Today intraday tips

Some of the best intraday tips for today are similar to the golden rules that have been discussed above as you need to follow those rules for earning greater profits and minimizing the loss.

  • Do a critical analysis of the stocks before investing in them.
  • Close the shares at the end for reducing the risk of loss.
  • Keep a track of the stock so that it can be sold at the right time.
  • Keep track of the stocks you are going to buy today or have already purchased. So that you can sell it at the right time and earn profit from it.