Intraday Trading can be considered exceptionally profitable but only after if you have good understanding of this type of trading. Traders who don’t spare their time in understanding the basics of intraday trading and just go on investing their money in intraday trade will only risk their money.
The word “Intraday” signifies an action that has to be carried out on the same day, and on the other hand, an intraday trade means a type of a trading in which buying and selling of the stocks are carried on a single day. Therefore, in an intraday trading, a trader can’t hold its positions of his stocks for long period.
The commission a trader pay for an intraday trading is quite higher than the trading done holding positions for a day or more.
Howsoever moneymaking a stock, one should protect its investment in intraday using “stop loss”. “Stop loss” is a technique by which you can fix a specific level of price. The traders in intraday trading adopt various strategies and use several tips to maximize their profits. However, it’s advisable to pick any strategy in which you are convenient with, but be aware of the risk factor too.
A person having a good understanding of the market can make exceptional profit trading intraday. But one should sensibly and prudently choose stocks for trade. Emotional betting or wrong speculation can be turn into financial hazardous in intraday trading. Even the expert of intraday trading takes the financial advisory services. This is because good agencies have sound expert with technicalities and therefore, their tips are quite reliable.
How to go about Intraday Trading
One of the good tips is trading with the existing market trend. In case the market is falling, it is better to sell first and later buy, and vice versa. Execute your intraday trade plans and ensure to stick to your plans. Set the desired profit levels and stop-loss limits. Don’t be too greedy. Instead, ensure to book the profits at fixed intervals. Maintain the stop-loss levels. It assists you in limiting your loss in case the market is not performing well. Also, select shares which are highly liquid. You should not trade whitout experience in trading.