Best Intraday Trading Tips for Beginners to Gain Profit

The world of stock market trading is quite a huge one. There are numerous types of trading practices including intraday trading, short term trading and long term trading. Out of these trading strategies, intraday trading is highly fascinating for many traders. Intraday trading (Day trading) involves buying and selling the stocks on the same day.
Novice traders easily fall into the trap of intraday trading. After all who does not want quick earning opportunity? But you must also understand that the opportunity of losing your money is equally high in day trading.
So you must learn the basics of day trading before you start to attempt trading. At Indira Trade, we conduct learning courses for novice traders as well as advanced stock market courses. You can join us and learn the best Intraday trading strategies and techniques for gaining success. We offer insightful and proven Intraday trading courses that can guarantee sure shot profit for the beginners.Read on the blog to know few of the top intraday trading tips for beginners.
Tips to Make Profit in Intraday Trading

• Research Well Before Buying

Intraday trading for profits requires you to research your stocks well before you buy them. You should have an eye on your favourite 8 to 10 shares and look for price changing events in the company like mergers, bonus declaration dates, dividend payment, etc. You can research about the support levels and resistance levels to make an informed decision.

• Pick Liquid Large-Cap Shares

Intraday trading requires squaring off the open positions before the end of the trading session. Hence it is advisable to pick shares of good performing companies that are highly liquid. You may pick large-cap shares instead of mid-size or small-caps. Large-cap shares are highly liquid because of the high trading volumes.

• Identify Entry and Target Prices

Before you actually jump into the market, you must decide upon the entry level (the point at which you want to buy) and target price (the point at which you want to sell). This can be done by analysing charts and technical details. Once you decide upon the entry and exit price, it is important to stick to your decision. Many times, people lose the opportunity to earn higher profits because they sell at a much lower price than their pre decided price for a nominal increase.

• Use Stop Loss

Another best intraday trading tip is to use a stop loss. Stop loss is an order placed with the stock broker to buy or sell a stock once it reaches a certain price. It is designed to limit a trader’s loss if the price shifts opposite to his expectations. Stop loss ensures that emotions are eliminated and you don’t hold on to a position in case the price shifts down.

Also read - Importance of setting stop losses to learn in detail about the advantages of setting stop loss.

• Book Profit On Hitting The Target Price

Most of the intraday traders get carried away by the upper price movement. In the greed to earn more, they do not sell their stocks, even after hitting the target price. This leads to high risks and chances are that you might carry forward the position to the next day. To avoid such situation, whenever you think that the stock has a further possibility of rising in price, you must readjust the stop loss trigger to match your price expectation.

• Avoid Being an Investor

It is a common psychology of traders to take the delivery of shares if their target price is not met. In the hope of price recovery, they shift from their day trading strategy to short term trading strategy. However, it is not recommended as the stocks which are purchased from intraday trading perspective might not be that great from the investment perspective.

Intraday trading provides higher leverage and decent returns in one day. But if it is not managed properly, it can lead to losses. So it is imperative to have a good understanding and knowledge of intraday trading. The above intraday tips will help traders to earn profits from intraday trading.

To learn more about intraday trading strategies, keep reading our blog or join Indira Gurukul to learn face to face from our experts.

At “Indira Trade”, we use fundamental and technical charts and portfolio watch tools which help to identify trends. This, in turn, helps traders to earn higher profits from day trading.