Published : 2 May 2023
You can minimize your losses during intraday trading by establishing a stop-loss with your broker.
● Follow the movement of the larger market as you develop your trading strategy. ● You can enter stocks during an uptrend and exit them based on your judgment. ● But if it is bearish, you must hold off on making trades until the stock begins recovering its prior highs.
It is beneficial in intraday trading to select stocks that move together with the market because this makes it easier to anticipate their price fluctuations.
You have two options: wait until the stock's upward momentum is complete or sell with the profit from its initial but significant rise.
Liquid stocks make it simpler for the investor to trade without volume restrictions since intraday trading involves buying and selling within a single day.
To better understand how stocks behave in relation to the larger market, the sectors they belong to, etc., do enough background research on the various stocks you are interested in trading in and narrow them down.
You must keep an eye out as an intraday trader to determine whether the stock you own is rising or falling.
Your enter and exit decisions should be based on your research rather than just following other investors when they buy or sell positions in particular stocks.
Never deviate from market sentiment, and book profits when it is appropriate.
Charts are important tools for an intraday trader's technical analysis. Charts help you to plan a trade and note the breakout points, levels of support and resistance, trading volume, and other important information.