Every person who comes to the stock market always having a goal to earn well. The stock market is one of the best places to making money, as it provides better returns than other places. Who want to earn money by Intraday trading. They should need to know right approach of trading.
In intraday trading Investing has no limits. You can start with Rs 1000 or with Rs 1, 00,000. There are no boundaries in capital. In intraday you buy and sell stocks within a day. Stocks are purchased not as a form of investment, for intraday trading you need a trading and a demat account. If you have good knowledge of intraday trading so, you can generate good profit in this. By the help of some points, you can earn money by intraday trading.
Some important point to earn money by intraday trading: –
- Use liquid stocks
- Research before starting
- Leave Your Fears
- Try to fixed Your Entry and Exit Points
- Recognise the correct price
- Move with the trend
Use liquid stocks: –
If you want to earn in intraday trading so, this is the first tip to you. you need to select liquid shares. Liquid shares are those type of shares that have good volume. The term ‘volume’ refers to the number of shares that passes on from one hand to the other in a day. You need to take some time to ensure yourself, you invest in right stocks. For that you need to make a list of some stocks on which you want to trade and start your research on that. you need to Pay attention to the shares for looking the prices of these shares are fluctuating, before you invest. intraday trading requires you to square off the position before the end of the day. If you buying a stock which doesn’t have enough liquidity, so it is going to be difficult for you to sell that stock. dealing only in liquid stocks is one of the basic principles of day trading. Adequate liquidity ensures that there is no limitation on the trading volume. Liquid stocks have many buyers and sellers. It is an important point for intraday trading if you want to earn profit so, you need to follow this.
Research before starting: –
If you want to earn money from intraday trading so, this is very important point foy you. it is a truth, potential for profits is high in intraday trading, but also are the chances of loss. Before initiating trading, you need to research on stocks in which you want to trade, select stocks from a sector you have an understanding of. After finalising your shares, you need to monitor their price movements for some days, along with other metrics such as volume and liquidity before initiating trades. So, this an important point. And you should need to know this point if you want to earn money from intraday trading.
Leave Your Fears: –
If you want to earn money from intraday trading so, it is necessary for you to take right decision related to the stock market. if you want to take good decision in stock market so, you should need to avoid your fear. because fear, always affect your decisions. It is best if you can keep this psychological factor in outside, because this is danger for you, when you are making trading decisions. It is important for you to finalise some stocks and position oneself only concerning them. No trader can make profits every day. so, if you want to earn money from intraday trading so, you need to leave behind your fears.
Entry and Exit Points: –
If you want to earn money from intraday trading so, you need to focus on the right price of the stock. Entry and exit point are the backbone of the stock market. For trading you need to focus on these points. If you can capable to understand these two points, so, you can assume you are capable to earn profit from intraday trading.
Before buy the stock, always determine the entry point and the price target of the stock. Price target is the price at which it is valued fairly, after taking into consideration its history and projected earnings. If the stock is running below its target price that is a good time to buy the stocks. when the stock reaches its target price once again, or exceeds it, so you will make profit. In trading if you want to gain profit so, you always need to focus on entry and exit point. You can earn money easily by intraday trading if aware about stock market.
Recognize the correct price: –
If you want to earn money from intraday trading, so, it is necessary for you to determine the correct price for entry and the right price to exit. Because price recognition is necessary for trading. If you want to earn profit from trading so, this is necessary for you to recognise the correct price.
Move with the trend: –
if you want to gain profit from intraday trading so, it is necessary for to move with the market trend. When the market is on top, so, trading in this condition in the share market may be a good idea. On the other hand, if the market is down, you can go short or wait for stocks to bottom out before entering. When you are taking part in intraday trading, following the trend is your safest path in ensuring profit. if you want to gain profit so, it is necessary for you to Select few stocks from which you want to trade. you need to target Track the movement of these stocks closely for at least 15 days. you need to analyse the stocks in a variety of ways. there are many ways to analyse like, your analyses are maybe based upon volume, indicators, and oscillators. If you follow your targeted stocks regularly in market hours you will gain a high level of accuracy in a span of few days. You will be in a better position to interpret price movements. Basis of the indicators you have used and your analysis, you can now fix your entry and exit points.
so, the conclusion is if you want to earn money by intraday trading, so, you need to understand the key points of the stock market. There are many key points related to the stock market and it is necessary for the trader to deeply understand of those points. Because without these points trading is impossible.s