What should the beginners know about intraday trading strategies?

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What should the beginners know about intraday
trading strategies? Intraday trading, as the name
pretty much suggests, relates to the buying and
selling of stocks on the same day, during
obviously the predefined trading hours by
relative authorities. The idea here is to buy
and sell stocks within the duration of the same
working day in order to generate profits as
much as possible. Such is the nature of the stock
market that the stock prices of different
companies keep fluctuating every day. A person
who employs intraday trading strategies seeks to
benefit from this rise and fall of stock prices.
Buy buying the stocks when they are cheap and
selling them when they are costly, one can
generate serious profits. Of course, there is a
risk factor associated with the process and this
is why one should be careful and probably seek
help from a company that specialises in the
broking field and have an automated trading
system set up, that helps minimize the risk
factor. Automated trading systems allow the
traders to set up specific rules for both the
trade entries as well as the exits, and once
these rules have been programmed, they can be
executed automatically with the help of a
computer. This system is so trustworthy, that
nearly 75 of all the shares that are traded on
the stock market, come from these kinds of
systems. There are certain things you should keep
in mind before diving headfirst into uncharted
waters. A rule of thumb that you should always
remember is to sell first and buy later, in case
the market is falling and vice-versa in the
opposite case. Another important thing to
remember is to not get too greedy. You need to
have contingencies stop loss and profit limits.
Instead of breaking the bank on a single day,
book your profits at regular intervals. This way,
youll suffer lesser losses and will be able to
stay in the race for a longer duration. Another
healthy advice is to deal in highly liquid
shares, and that too in small quantities unless
youre a seasoned player. Heres another rule of
thumb if youre going into automated trading
make it a point to not trade in the first hour,
as it is chaotic and unpredictable and it is the
time when the opening range is
established. Sticking to your plan is also very
important. Once your desired profit levels for
the day are met, you need to pull out. If you
dont follow this discipline, youll end up
incurring substantial losses.