1. Respect the Market

Just imagine the market as a huge sea:

You never know for certain when a storm is going to hit you nor how hard it’s going to be. And when it happens, you try to avoid the hardest blows and seek shelter. The same could be applied to the movements in the financial markets. Whenever the market goes against your predictions and expectations don’t be stubborn and exit your position. Thus, you will not only be able to mitigate the losses but also focus on your next moves.
Trends are the pulse of the financial markets.
So if you want to be a successful intraday trader, you will have to learn to feel this pulse and be ready for trend shifts that you could use for more trades. However, this could be a tricky thing and you may sometimes fail to identify a trend shift. But if you follow the rule not to go against the market and essentially restrict yourself to smaller gains on more risk-free trades, you should be able to build a solid foundation for intraday trading.

2. Use indicators:-

One thing that will certainly help you better understand the movements on the market and place your trades is the so-called Support and Resistance. This is essentially a zone where the “support” for or the “resistance” against the price of a certain asset is concentrated. You can use this indicator (and many others) to place trades in many ways, but make sure you keep an eye on it because everybody else will be doing so.

3. Patience, Trend lines And Target Price:-

Waiting is a crucial part of trading. Just arm up yourself with patience and trend lines and you may end up placing very profitable trades. Trend lines are a yet another great tool and they are very easy to use: just draw a line between two points on the chart. Trend lines will help you determine trend shifts and when is the right time for a new entry, especially for long trades. You can also Candlesticks charts to analyze and decide what the best point to go in is.

4. Set a Target Price:-

Once you’ve determined an entry level, you have to make sure you’ve got a target price as well. This should happen before you open a trading position so that you can have a clear picture of where you’re starting point is and where are you heading to. Otherwise, you risk missing plenty of good opportunities (and good gains, so to speak) as a result of hasty decisions.

5. Use the Stop Loss Tool:-

Managing your risk is key to having a successful trading career. Therefore, no trader can hope for long term success without using the stop loss tool. What this feature essentially does is to automatically close positions when the price of an asset falls under a certain barrier, thus significantly reducing the risk. Moreover, the stop loss helps traders reduce emotions when taking a decision.

6. Don’t Play When Markets Don’t Trend:-

Whether you trade penny stocks, currencies or commodities – stop loss is a trigger that is used to automatically sell the shares if the price falls below a specified limit. This is beneficial in limiting the potential loss for investors due to the fall in the stock prices. For investors who have used short-selling, stop loss reduces loss in case the price rises beyond their expectations.

7. Determine Entry and Target Prices:-

Before placing the buy order, you must determine your entry level and target price. It is common for a person’s psychology to change after purchasing the shares. As a result, you may sell even if the price sees a nominal increase. Due to this, you may lose the opportunity to take advantage of higher gains because of the price increase.

8. When the Market Stalls, Don’t Play :-

As a trader, you have to accept the fact that you do not control the market – you are just a tiny part of it and the only thing you can do is to respect its movements and be a smart player. What if prices do not move, what can you do?

Don’t trade, just wait and be patient.
Use the “supply and demand” strategy to predict and expect price movements so that you can start trading again. If there is not enough supply of a product and there are plenty of buyers, quite logically, the price will go up.

Author's Bio: 

I'm Aneet Trifid, I am sharing an article about an overview of Intraday Trading Tips for Entry and Exit Strategies. we provide Stock Trading Tips