What should you know before Trying Intraday Trading?

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What should you know before Trying Intraday Trading?

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Here you know what is important before you try Intraday trading. Intraday traders have to be quick on their moves of buying and selling with strict stop loss. Visit: – PowerPoint PPT presentation

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Title: What should you know before Trying Intraday Trading?


1
A1 Intraday Tips
  • Stock Research

2
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3
What should you Know before Trying Intraday
Trading?
  • About Intraday Trading
  • Intraday trading means buying or short selling
    stocks or taking long or short positions in
    securities and squaring off the positions before
    the end of the trading day.
  • The day trader can executes his buy and sell
    order in a gap of 1 min, in a 1 hour or even in
    4-6 hours, but he should square off his positions
    before market close, is term as day trade.
  • The tools and techniques used for Intraday
    trading are fundamentally different from those
    used for long-term investing. 
  • Day trading requires two entities / traders for a
    trade, one trader to sell and the other trader to
    buy the same stock.
  • The stock market is very volatile it can go up
    and sometime can come down too.
  • A day traders should not trade and depend only on
    the market going up.

4
  • A trader can make a profit even when the market
    is going down, by first short selling the stock
    and covering his short sell order by buying the
    stock at lower price after some time, before
    market close.
  • Technical Analysis i.e. Reading charts, using
    technical indicators should be done before you do
    day trading in a particular stock in NSE share
    market.
  • A trader needs to do good research to buy stocks
    for Intraday trading, and he should as per the
    market trend.
  • Intraday traders have to be quick on their moves
    of buying and selling with strict stop loss.
  • Trader should know and follow some strict
    Discipline which is very important if they really
    want make gains in day trading.
  • Here you know what is important before you try
    Intraday trading.

5
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6
Important to Know before you Try Intraday Trading
7
Open a Demat cum Trading a/c.
  •  You will be needed a Demat cum Trading Account
    to start your trading.
  • We want every day trader do proper research and
    read the terms of services before you register
    with a good broker and fill their forms to open
    your trading account.
  • Account opening charges, Annual Maintenance Fees,
    Transaction fees should be discussed and compares
    with available broking houses in your local area/
    city.

8
Learn to Use the Trading Software
  • Before a trader Execute his First Intraday Trade
    a trader should learn to use the trading
    software, given by his broker to trade in share
    market.
  • He should know how to put buy / short sell orders
    in NSE market.
  • He should know about market orders and limit
    orders too.
  • He should have knowledge of putting stop loss
    orders.
  • He should learn about equity, stock futures,
    options, trading indicators etc.

9
Trade with the Extra Money not Emergency Money  
  • Trader should keep aside some emergency money and
    use only the extra money he has to do day
    trading.
  • Day trading can be risky, as any bad news can
    make market crash at any time, and any good news
    and make it go higher in matter of minutes.
  • Also trader has to keep some emergency money with
    him, which he should not use for day trading. 
  • This is because In any case, if any day trade
    goes the other way and trader suffers loss, this
    should not matter to his day to day life.

10
Do Paper Trading
  • Paper trading also called as Virtual trading or
    trading without risking your money. 
  • To avoid your capital losses, we advise trader to
    do paper trading before they actually start
    trading in NSE market with their real money. 
  • When they start making profits doing paper
    trading, we advise them to shift to actual online
    trading with your own hard earned money.

11
Proper Entry and Exit
  • You need a trading plan because it can help you
    make logical trading decisions and define the
    parameters of your ideal trade.
  • A good trading plan will help you to avoid making
    emotional decisions in the heat of the moment. 
  • A trader should prepare a smart plan and stick to
    his day trading plan, which includes his daily
    trading goals, his available capital for daily
    trades, his time commitment, his attitude to risk
    etc.

12
Smart and Consistent Trading Plan
  • Traders should have several day trading
    strategies to determine when to enter at a
    particular price and when to exit at correct
    price.
  • A combination of support and resistance prices of
    a stock can be used to take call on day trading
    entry and exit levels.
  • Timing is the key in Intraday trading.
  • If trade happens on a proper time, you can make
    profits and vice versa.

13
Choose liquid stocks 
  • A Day trader should trade in highly liquid
    stocks, he should stay away from Volatile stocks
    as well as in penny stocks. 
  • Normally Stock listed in Derivative Segment,
    Futures segment, Nifty 50 stocks or Nifty 100
    stocks have very good volume and traders should
    choose stocks from the same.
  • To succeed as a day trader, it is important to
    know how to pick the right and liquid stocks for
    Intraday trading.
  • Often people are unable to make profits because
    they fail to select appropriate stocks to trade
    during the day.

14
Record your wining / Losing Trades
  • A trader should records his winning as well as
    loosing trades.
  • This habit of recording or writing your trades
    enables trader to learn from past trading
    mistakes and improve his judgment during day
    trading. 
  • He should learn from his loses and also learn
    from his gains too.
  • This will make him more perfect and his success
    rates in day trading could go up higher day by
    day.

15
Keep Tap on News
  • He should watch financial news channels like CNBC
    Awaaz, Zee Business, NDTV Profit, ET NOW, CNBC TV
    18, CNBC Awaz etc so that he is updated with the
    latest happenings in global as well as Indian
    markets.
  • Change of govt. policy, news likes a war like
    situation, government changes in general
    elections, and earthquake can have sudden
    negative impact on the market.
  • You will be updated with the news by this TV
    channels if you watch them during market hours,
    when your money is at stakes.

16
Stop loss 
  • A trader should always trade with a stop loss in
    day trading.
  • He should Strictly Follow the Stop Loss Decided
    at the Time of Buying or short selling the stock
    when he is doing day trading.
  • He should not Change the stop loss in any
    circumstances to avoid big losses of his capital.

17
Ignore Rumors / Hot tips
  • Dont trade on rumors, hot tips of penny stocks
    received by SMS or phone calls from unknown
    people.
  • Do your own technical research by reading charts,
    indicators, if you dont have the time to do
    research then you should hire the services of a
    Investment advisory like A1 Intraday Tips.

18
Dont Over trade 
  • A trader should put less trades that to in a
    limited quantity as per his capital and risk
    taking abilities.
  • Over trading is likely to turn his small profits
    in to big losses.

19
We at A1 Intraday Tips team have tried to give
in-depth information about what a day trader
should know before he jumps in sea of money i.e
stock market to do day trading. A new Trader
should start trading with low capital and
increase the capital, when he gets more wining
trades then the losing ones. No trader can make
daily gains doing day trading in his entire life,
sometimes he can have losses too, but if he
learns from his mistake, he can surely make money
from stock market.
20

21
THANKS
  • Do you have any questions?
  • info_at_a1intradaytips.in
  • 7506090788 / 7600797534
  • https//www.a1intradaytips.in/
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