Intraday Trading and its Rules

Intraday trading means purchase and selling of stock on the same day it can also be abbreviated as buying and selling of stocks on the same day in this type of trading taking intraday tips is a very good because the consultants can provide good and profitable suggestions and the positions are squared off in the same day before the market closes in this trading there is no transfer of ownership of shares..

In day trading, positions are squared off on the same day and a regular trade gets settled over a span of days if not longer. So, you get delivery of the shares you bought while the shares you sold move out of your account.

Intra-day traders operate with high risk in the market and choose those stocks which have good movement as we know that market conditions change rapidly so they participate in that condition and opportunities for profit are developed by them these traders use technical analysis to determine the buy and sell condition.

These traders are full time professional traders who are eager to know the latest market conditions and buy and sell the stocks in intraday and also on short term these traders also buy and sell the shares abruptly in the same day in order to close the position some of the common rules of intraday trading are-

1. Invest in the stock only in which if you lose i.e the stock goes low as you were not expecting you shouldn't have the regret.

2. Choose the shares which have higher liquidity.

3. Trade only on two to three shares at a time.

4. Pay attention on the watch lists because it is important for a day trader to know every watch list.

5. Entry price and targets should be fixed by Intraday traders.

6. Stop loss is necessary and must be used by intraday traders.

7. Do not predict market movements because how best is the analysis is no one can predict the market movements.

Risk level is high in Intraday trading and for Intraday traders because they square off their positions at the end of the day and in this way put a limit on the risk they take because each day is a new experience and they don’t have to worry about what happens which can affect the long term holding position.