Intraday Trading: A comprehensive guide
Intraday Trading: A comprehensive guide
Blog Article
Intraday trading is an investing strategy many investors employ in the stock markets with a view to make quick profits in a short time without owning a stock.
Steps to Start Intraday Trading
1. Choose a Reputable Broker
Select a brokerage that offers low transaction fees, a reliable trading platform, and efficient order execution.
2. Pick Liquid Stocks
Choose stocks that have high trading volume and liquidity. This ensures smooth buying and selling without major price deviations.
3. Use Stop-Loss Orders
A stop-loss order automatically closes a position when a stock reaches a certain price, preventing excessive losses.
4. Understand Market Trends
Use charts, candlestick patterns, and indicators like Moving Averages, Relative Strength Index (RSI), and Bollinger Bands.
5. Manage Risks Effectively
- Invest only what you can afford to lose.
- Follow the 1% rule – never risk more than 1% of your trading capital on a single trade.
- Diversify your trades to spread risk.