There are many people with a different mindset and different strategy of Trading. What is Intraday trading? How to start and what are the strategies which beginner has to take care of it.
Let’s take a look what is intraday trading and strategy for beginners.
What is Intraday trading?
- Intraday trading is the trading in which positions are held for short as well as for long period within the same day. Intraday trading is generally for short period of time in which investors has to trade for more profit, if it is played correctly then intraday is lucrative game.
- In simple term, Intraday is an act of buying or selling of any financial asset within the same day in the trading hours. But this can be very dangerous to those who are new in this type of trading.
- Positions can be either long or short in which borrowing shares then offering the share to sell at a certain price. Intraday traders are looking to take advantages in unpredictable market and reduce the risk of bad earning that might happen after the market closed.
- Traders who participate in day trading are called day traders and the traders who trade with the motive for profits are called speculators. Speculation is the purchase of assets like commodity, goods or real estate with the hope that will become valuable in future date.
- Intraday trading had got bad status in the 1990’s when many newbie’s jump into online trading platforms without applying trial and tested methods. They think stock trading is a child play game anybody can do and make fortune in that with just a little knowledge. But also, Intraday is not that complicated if you learn this in a right way.
- Intraday trading is based on simple and easy rule, which is taught at Online trading courses. Beginners are fast and aggressive strategy maker which is not required in Intraday trading it’s all about patience and good understanding of how to analyze the risk and reward plan. It takes some time to learn and make best strategy.
Beginners can give them a head start with some basic and well crafted strategies. Let’s take a look of it.
- Unbalance supply and demand are the point of your entry
In market, if supply is collapse or effect by anything then prices go high and if supply is excess then the prices go low, as this is the most important point which is taught in by any academy. Look for these turning points on the price chart.
- Always set your Intraday target
Beginners should always set their target in advance and how much profit is acceptable and always set your stop-loss level. Then stick with your plan and strategy. This will limit your loss and keep you from greedy; if market is in good shape then you can reset your target after initial target is achieved.
- Your risk-reward ratio should be minimum when setting of your goal
This is very much important point which is beginners should understand, your risk-reward point ratio should be minimal like 3:1. This allows you to win more and lose less. As you gain some experiences your risk reward ratio goes high.
- It all about Patience
It’s very often successful traders do not trade every day, they may be in the market, if they do not see the opportunities they don’t trade. That is very good judgment then going against it. Many traders do daily trading even their fortune is not in the favor.
- Learn from experiences and don’t stick with one intraday trading stock
Many beginners loss their money and they lose all hope when nothing goes in their favor. Don’t lose your hope, learn from past experiences.
There are Forex, future and option in which you can trade; they show volatility and liquidity just like stocks which make them ideal for intraday trading. May be one of them is appealing if market in not going as you plan.
If you want to start trading then you can start by yourself or you can take help of any advisory company. Generally I prefer BAZAAR TRADING, form their advice I earn bigger profit, they provide the best technical and fundamental analysis in stock trading and commodity from experts.