Free Intraday Trading Tips: If we talk about intraday trading, then it’s such a thing in which very few people are able to be successful because to be successful in it, it’s very important to have the right set of skills and knowledge. Intraday trading is not as easy for beginners as it seems. It’s very important for day traders to constantly monitor prices as well as follow discipline.
Because the fast volatility of the market can force them to take wrong decisions, so intraday traders always have to be active. It’s very important to follow intraday trading tips and today in this article we will talk about some free tips that every intraday trader should follow.
What is Intraday Trading?
Intraday trading means buying and selling of stocks on the same day and is also called day trading and its purpose is to make potential profits through the movement of the market price. Day trading is often not done for investment purposes but for the purpose of making quick profits. This day trading can be done on almost all types of stocks.
For example, a stock is worth ₹200 in the morning and then within some time that stock becomes worth ₹300. In such a situation, if you have bought 1000 shares in the morning, then you can sell them at ₹300 when the price increases and so on. By doing this you will make a profit of ₹1,00,000 in a short time and this is what we call intraday trading. [Free Intraday Trading Tips]
Advantages of Intraday Trading
- Allow traders to make high potential profits in intraday trading and that too in short-term price movements.
- Traders have the flexibility to make their own trading decisions.
- No overnight risk as the position Is not affected by any unpredictable or negative news & events.
- Traders can control their trades and manage their risk exposure dynamically throughout the day.
- Intraday trading allows traders to use leverage, which means traders can control larger amount of stock with a relatively small investment.
Disadvantages of Intraday Trading
- Intraday trading is very risky and volatile, which can lead to unnecessary losses.
- Traders have to make decisions in short time frames due to which they commit impulsive trading and mistakes.
- Intraday trading is very stressful because you have to execute trades within a short period of time.
10 Free Intraday Trading Tips You Should Follow:
Tip 1: Use Technical Analysis
If we understand technical analysis in simple language, then in technical analysis, we analyze the charts of any trading instrument, it may be stock or indices. These charts contain the historical prices of stocks or indices. On this basis, we try to predict what the stock or indices price will be in the future.
In technical analysis, you have to learn about chart patterns, candlestick patterns, indicators and strategies. If you want to become a smart intraday trader, then you have to practice all these things again and again and become perfect in them.
You might have noticed that all the successful traders have their own strategies which they use regularly and only with those few strategies are they able to make regular profits.
While there are beginners who learn everything but do not implement anything properly due to which they make regular losses, so if you want to become a smart intraday trader then you should also make some strategies of your own which suits you.
And the same strategies you have to use regularly and you have to be expert in them. If you want to master technical analysis then you should always pay attention to the price action which shows us the movement of the price of any stock. [Free Intraday Trading Tips]
Tip 2: Trade in Liquid Stocks
As an intraday trader, you should always keep in mind that you should trade only in liquid stocks. Liquid stocks are those stocks which have high trading volume, that means there is a lot of buying and selling in such stocks. Because in intraday trading we square off our transactions on the same day.
That’s why to close your position, it’s necessary to have sufficient buyers and sellers for the stock and this is possible only when the stock is highly liquid. You should always trade in the best quality stock so that you can make huge profits and if you choose the wrong stocks then there are bound to be huge losses.
Read More: Top 10 Volatile Stocks for Intraday Trading in 2024
Tip 3: Follow a Consistent Trading Plan
In intraday trading, you have to make a trading plan and trade accordingly. In the beginning, intraday traders mostly make good plans but do not follow them consistently. If they suffer a loss once or twice, they change their trading plan.
But you do not have to do this, to test any trading plan and implement it properly, you should follow the same plan continuously for some time, only then you will be able to become a successful intraday trader. [Free Intraday Trading Tips]
Tip 4: Use Stop Loss Orders
As an intraday trader, you should know when to enter a stock and when to exit. This approach can save you from incurring heavy losses in the market. Placing a stop loss is one way to limit your losses in intraday trading.
The biggest mistake beginners make is that they do not set a stop loss and wait for the stock price to move back in their direction. But in this process, a trader incurs huge losses and all his trading capital gets exhausted. You should always place stop-loss orders so that you incur less losses and preserve your capital.
Tip 5: Book Your Profits Timely
It’s very important to book profit on time in intraday trading. In day trading, price movements are very fast and volatility can convert your profitable trades into losses. Therefore, without being too greedy, you should book profit timely as per your analysis and exit your position.
Tip 6: Keep All The Records of Trades
In intraday trading, you should keep a record of performance reports of all your trades which will help you in measuring the effectiveness of your strategy and when you analyze all your trades, it will help you in perfecting your entry and exit positions.
Tip 7: Trade with Money You are Ready to Lose
One of the most important tips for intraday trading is to use only that part of your overall money that you are willing to lose. This is important because intraday trading is very risky and you can suffer heavy losses in a volatile market.
That’s why you have to use only that part of your capital, even if it does not make much difference in your daily life. For example, if you have 50k, then use only 10% of it in trading and gradually increase your capital. [Free Intraday Trading Tips]
Tip 8: Evaluate Your Mistakes
Many intraday traders want to recover losses from trading and want to improve their intraday trading. So the first step is that you have to learn to correct your mistakes and start learning from your own mistakes. First of all, you have to identify your mistakes and then try to improve them.
You should always keep a trading journal. Whenever you execute any trade, whether there is loss or profit, you should always write it in the journal because whatever mistake you make, look at it from the journal and try to correct your mistakes. By doing this, your trading skills will also improve and your confidence will also boost.
Tip 9: Control Your Emotions
In intraday trading, always learn to trade without emotions. You must have always heard that ‘trade like a robot’. This is important because in trading we take wrong decisions because of emotions. You always have to learn to control your emotions because if you want to generate profit.
If so, then you will have to trade keeping your emotions aside so that you can take right decisions in trading. If you have chosen intraday trading then only emotions are important in it because you should know how to control your emotions, only then you can become a profitable trader. [Free Intraday Trading Tips]
Tip 10: Risk Management
It’s always said that strategy is only 20% important in trading and the remaining 80% is risk management. We all know that like every business, there is risk in trading also and those who are pro traders, accept their risks. Whereas those who are beginners, focus only on profits.
So if you want to make regular profits then you will also have to know how to manage risk. If you are not able to accept your risk then you will not be able to handle the risk in intraday trading, that’s why first of all accept that there is risk in intraday trading. You always have to execute trades only after implementing risk management.
Bonus Tip: Practice with Paper Trading
If you want to do intraday trading and you are a beginner, then always practice with paper trading. What happens is that when a new trader starts intraday trading, then investing real money becomes very risky due to lack of knowledge or experience.
Through paper trading, you can improve your trading skills and practice about day trading without investing real money and there is no risk in paper trading because due to the use of virtual money.
Here, you can gain basic knowledge of the stock market. Paper trading apps are great ways to learn about day trading and these apps are especially useful for beginners who want to learn intraday trading without risking real money. [Free Intraday Trading Tips]
Read More: How to Make Money in Intraday Trading?
Should Beginners Do Intraday Trading?
If you are a beginner and want to do intraday trading, then intraday trading can be very risky and complex for you. In intraday trading, you have to buy and sell your shares on the same day and there is high volatility in the market. Due to this, beginners may also incur unnecessary losses.
Intraday trading becomes very stressful for beginners because in this you have to execute your trade very fast due to which you take wrong decisions. To become successful in intraday trading, you need a deep understanding of market trends, technical analysis, trading strategies and technical indicators, which beginners often lack.
A beginner should start with less risky trading methods like long-term investing and paper trading before entering into intraday trading. Through paper trading, you can learn and practice about day trading and that too without investing real money. By doing this, you can build your knowledge and experience before moving into day trading.
If a beginner is still interested in intraday trading then it would be advisable for them to start day trading with a limited or small amount of capital and take guidance from professional traders. [Free Intraday Trading Tips]
Conclusion
These were some important intraday trading tips and these tips will help you in managing your profits as well as your profitable trades. Beginner traders have to keep in mind that intraday trading is risky as well as rewarding, that’s why you can become better at it only with experience.
That’s why you should gain as much experience as possible by following all these important tips. I hope you have liked the information we have shared in this article, to know more about intraday trading you can read our other articles too. [Free Intraday Trading Tips]
Read More: 7 Golden Strategies for Intraday Trading in 2024
Frequently Asked Questions (FAQs)
Q1) What is the intraday trading trick?
If you do intraday trading then you will find these two tricks very important. The first trick is advanced declining ratios, often we do but do not notice this. Advanced declining ratios help us to know how many stocks are up and how many are down on that particular day. With this, you can gauge market sentiment.
And the second trick is the trading volume. If the call volume is increasing compared to the last three days to the average volume then you have to understand that some significant action is taking place there like institution action or operator action.
Q2) What is the secret of intraday trading?
Secrets of intraday trading which you must follow: First, if you are a scalper, then your time frame on candles should be 1 minute, 3 minutes or maximum 5 minutes and your trading time should be maximum 15 minutes. Your risk-to-reward ratio should be 1:1 or 1:2. For example, if you want to earn ₹2000 then your stop-loss should be ₹1000.
Q3) What are the 5 intraday strategies?
Top 5 intraday strategies:
- Gap up & gap down strategy
- Moving Average strategy
- RSI trading strategy
- Breakout trading strategy
- Pullback trading strategy
Q4) Which is the best website for intraday tips?
Moneycontrol, Investing, NSE India, 5 paisa and Zerodha are the best websites for intraday tips.
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