In this short yet powerful article I’m going to tell you the golden rules to follow if you’re about to start intraday trading.
Nowadays, stock gurus are flooding the internet. They are self-made gurus trying to allure people telling their success story and bla bla. We have to take the utmost precautions to not fall prey for them. The only mantra to get success in trading is self-study, dedication, discipline, and patience. Only then, it will pay your hard work. I am giving you some basic tips that I am using and making a profit out of it. It may be little or fewer bucks but in the long run only slow and steady win the race. One thing you should always remember in trading is not to overtrade and be satisfied with what you have earned for the day.
Most of the time small traders or retailers always fall prey to big fish of the stock market and we become the scapegoat. So, whenever we buy the price of the share dip and vice-versa. In order to save our hard-earned money and dig some cash out of the share market, we need to follow some stringent measures.
Let’s go and find out what is stored inside those golden rules for intraday trading.
I’m listing here the 05 golden basic rules you should follow in intraday trading if you want to earn serious money from stock market.
Follow the Trends while selecting stocks for Intraday Trading
Following trends, while selecting a stock for intraday trading is very important. This is one of the important factors in deciding your intraday trading direction.
For your convenience, trends can be divided in to three sections viz. Monthly, weekly and daily. Let’s discuss these trends in details.
The first thing that we should study before the selection of stocks for intraday trading is the monthly trend of a stock. So we can find out different stocks from the NSE website whose monthly trends are up. You have to see the technical analysis chart to check the trends by selecting the month. You just choose the stocks whose monthly trends are up and note down.
The weekly trend is also one of the essences in the selection of good stock for intraday trading. You can follow the same formula in finding the monthly trend as I’ve mentioned above. You can find out as many stocks whose weekly trend is upward and write it down so that you can compare all the stocks later.
The daily trend is as good as the monthly trend or weekly trend. We cannot opt-out daily trends to start for intraday trading. For checking the daily trend of a particular stock you’ve to go to the NSE website and do the same as you do for Monthly or Weekly trends. You just have to change to a day option from the technical chart. The ideal time interval for technical analysis is 15 minutes for intraday trading.
Proper Homework for Intraday Trading
It’ll be your wise decision if you do some proper homework before you step out for intraday trading.
Let us assume that you’ve got your stocks a day before and their trends are identical in three categories i.e monthly, weekly and daily trends. You can think of it as your homework that needs to be done before you go to school. After having all these resources you need to find out a support level also to enter into the market. Never make any hasty decision while entering a live market. Always bear in mind that you will get your whole life for trading. Generally, the market opens at 0915 and closes at 1530. There is no need to enter the market immediately and is strictly not advised. Your money is only yours and why should you give it to the market.
Best Time to Enter Live Market for Intraday Trading
Now, you’ve got all the instruments to do intraday trading. Last but not the least you need to find out the perfect time to enter to the live market. Always remember that “Slow and Steady Win the Race”.
Let us find out the best time to enter the market for intraday trading.
You must wait for the first 45 minutes to watch out the behavioral action of a particular stock. After that, you can enter the market and start buying/selling stocks. Also, you have to check that the current market price (CMP) of a particular stock is higher than the support price.
Same as I mentioned above you can also short stocks by selecting stocks whose particular trends are down in the three categories. You can do an even number of trades i.e you buy two, four, eight trades, etc. alternately so that you may not lose when the wave of sentiments hits the market. You should always keep in mind that the Stock market is a machine run by the sentiment of big players and you must tune yourself according to the music they play.
Never forget to put stop loss. It plays a major role in trading and will save your bread for the future.
Final Thoughts on Intraday Trading
If you’re reading this line I can assume that you read my short article and appreciate my work. However, it is not advised to follow blindly my methods. You do your own research and it is very important to follow your own methods. All the methods mentioned in this post doesn’t guarantee for full-time income. However, you can use it for your referral. The results of your research and some information from this article may help you in earning money from intraday trading.
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