Investing has become a habit for most of the individuals today, because people have realized the value of making money from your existing money. Putting your money into stock market is not a new thing at all, since this has been happening since a long time now, but if we talk about a trading practice that has gained momentum in the past few years, it surely has to be intraday trading only. For all those who have no idea about this concept, in this trading, you don’t buy the shares and keep them with yourself until long term, rather you buy and sell the shares within the same trading day. No matter whether you are a beginner or a pro at intraday trading, it has a lot to teach to everyone. To make the most out of your intraday trading, it’s important to seek the right guidance and follow the mandatory instructions. There are various tips that will help you in benefitting from intraday trading, some of them are mentioned below:
- Don’t get greedy and round off your profits before the end: Stock market trading is a very risky affair, because you can lose your money as quickly as you earn the profits out of it. Hence you need to be very careful about every step that you take. You should never try to challenge the market in any way, because it can take a U-turn at any point of time, and you will get wiped out easily. Though your fluctuations might point out that market is experiencing a bullish run, but in the end the scenario might be completely different. It’s important to make sure that you sell your shares at the end of day or as soon as it reaches the stop loss level, so that you don’t incur heavy losses.
- Go for stocks that have high liquidity: The best tip that anyone can ever give you regarding intraday trading is to always opt for stocks that are highly liquid, because they are usually traded in large volumes and have high value to them. Intraday traders can buy any number or high cap stocks they want and sell it any time before ending of the day. Along with all this, you should always keep in mind to diversify your portfolio and trade in different variety of stocks, so that you can balance your risk and eliminate huge loss at once.
- Be very careful about your timing: Time management plays a very crucial role in intraday trading, because you cannot expect to round off your position in the first hour of the trading session, since the volatility at this point of time is quite high. The ideal rounding time is in the afternoon or around 1pm to be more precise. It will help you in making wise decisions and profits.
For individuals who want to know what is demat account, it is an online trading account which allows you to trade stocks through various online portals.