Intraday trading refers to stock transactions that take place on the same day. As a result, it applies to the purchase and sale of stock in a single trading session. You must book gains within the same trading session in intraday trading and not park your money for an extended period of time. Compounding returns over a couple of years isn't a viable option here. Intraday trading necessitates having a keen sense of how the market can behave, as well as the ability to react quickly and profit in a matter of hours. Intraday trading strategies necessitate constant monitoring of market fluctuations during the day, daily stock volume, and a variety of other factors. so let's take a look at the basics of intraday trading for beginners.
There are different types of trading and Investments like intraday trading, swing trading, positional trading, medium-term investment, and long-term investment. Among all these types of trading and investments, Intraday Trading is the shortest timeframe trading. Intraday trading is also called as Day trading which means buying and selling of stocks and other financial instruments within the same day. In other words, in Intraday trading you cannot carry forward your position to the next day; all the transactions are settled on an intraday basis which means that all positions are squared off before the market closes so there is no transfer of ownership of shares.
In intraday trades, you have a short time span for trading and you need to square off your position before the market closes. So it is essential that you have to choose stocks that have enough liquidity for executing such trades. Also, the intraday stocks should have high volatility because with a lack of volatility one cannot make intraday trades profitable. That is why for intraday trading one has to choose highly liquid and volatile stocks like large-cap stocks. The large-cap stocks have both enough liquidity as well as high volatility which are required for intraday trades.
There are various intraday strategies for beginners. These strategies include:
There are few rules to make intraday trading successful
Conclusion: Understanding the importance of each of these trading rules, and how they work together, can help a trader establish a feasible trading business. Trading involves hard work, a cool and calm temperament, and a trader who has the discipline and patience to follow these rules can increase their odds of success in the market. To start intraday trading with GEPL Capital click here. To explore more investment opportunities click here.
Want to make a short-term investment in the stock market to earn double-digit returns on your investment? Than this blog is for you. Our Technical analyst Mr.Malay Thakkar at GEPL Capital ...Read More
Long-term investment A strategy that is used by great investors like Benjamin Graham and Warren Buffett. But, What does long-term investment actually mean? How one should find the best stock to invest in India ...Read More
With reference to the SEBI circular dated 20th July 2020, Peak Margin has been introduced in the Equity, Commodity & Currency segment from 1st December 2020. W.e.f 1st June 2021, there ...Read More