7 Basic Rules for Trading in Intraday

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Rules for Intraday Trading
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Index

• Intraday Trading
• 7 Basic Rules for Trading in Intraday
• 1. Timing the Market
• 2. Plan Investment Strategy and Stick with it
• 3. Exiting the Position
• 4. Invest Small Amounts that Wont Pinch
• 5. Research
• 6. Close the Open Position
• 7. Spend Time

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Intraday Trading

• Most of the traders, especially the beginners,
  lose money in intraday trading because of the
  high volatility of the markets.
• Generally, losses occur due to fear or greed
  because investment is not risky, the lack of
  knowledge is.

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7 Basic Rules for Trading in Intraday
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1. Timing the Market

• Professional often recommend individual avoid
  trading during the first hour, once the markets
  open.
• Take the positions between noon and 1 pm can
  increase the possibility of earning profits.

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2. Plan Investment Strategy and Stick with it

• Every time users initiate a trade, and it is
  important for them to have the clear plan of how
  to do intraday trading.
• The entry and exit prices before initiating the
  trade are crucial.
• The most important intraday trading tips use the
  stop loss trigger to reduce the potential loss of
  the position.

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• Moreover, once the stock achieves the target
  price, users are suggested to close the position
  and not be greedy and expect the higher profits.

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3. Exiting the Position

• For trades that provide profits and price-give
  reversal, it is prudent to book the profits and
  exit the open position.
• Also, if the conditions are not favorable to the
  position, it is advisable to immediately exit and
  not await the stop-loss trigger to be activated.
• It helps traders to reduce their losses.

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4. Invest Small Amounts that Wont Pinch

• It is not new for beginners to get carried away
  once they make some profits during the day
  trading.
• However, markets are volatile and predicting the
  trends is not easy even for the seasoned
  professionals.
• In that situation, beginners can easily lose all
  the investments.

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• That is why an important intraday tip is to
  invest the smaller sums that a user can afford to
  lose.
• This ensures individuals do not face financial
  difficulties in case the markets do not favor
  them.

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5. Research

• Before beginning in intraday trading, it is
  suggested to understand the basics of the stock
  market and the fundamental and technical
  analyses.
• There is lots of research available on the
  Internet and taking the time to read it.
• Moreover, there are hundreds of stocks that are
  traded on the equity markets and traders trade
  only two or three liquid stocks.

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• Liquid stocks are those shares that have high
  volumes in the intraday market.
• It allows traders to exit open positions before
  the end of the trading sessions.

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6. Close the open Position

• Some traders may get tempted to take delivery of
  their positions in case their targets are not
  achieved.
• It is one of the biggest errors, and it is
  crucial to close all the open positions even if
  traders have to book a loss.

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7. Spend Time

• Day trading is not for professionals who are
  employed in the full-time job.
• Traders must be able to monitor the market
  movements throughout the market session to enable
  to make the right calls as required.

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Thank You