Title: What should you know before Trying Intraday Trading?
1A1 Intraday Tips
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3What 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(No Transcript)
6Important to Know before you Try Intraday Trading
7Open 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.
8Learn 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.
9Trade 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.
10Do 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.
11Proper 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.
12Smart 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.
13Choose 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.
14Record 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.
15Keep 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.
16Stop 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.
17Ignore 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.
18Dont 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.
19We 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 21THANKS
- Do you have any questions?
- info_at_a1intradaytips.in
- 7506090788 / 7600797534
- https//www.a1intradaytips.in/