Intraday Trading is a type of online stock trading in which a trader buys and sells the stock market securities within the same day of trading. This helps intraday traders close their positions on the same day of purchase to avoid negative price gaps between the day’s closing price and the next day’s opening price.
Intraday trading is suitable for those investors who want to leverage the price fluctuations of the stocks during the day itself. This article brings to you the 7 ways you can effectively manage your intraday trades and keep your portfolio green!
7 Ways To Improve Intraday Trading
Following are some of the online stock trading strategies which can help you keep your portfolio green while making intraday trades –
- Proper Knowledge
While doing intraday trading, always remember that your knowledge is your power. Thus, it is imperative to have a sound knowledge of different stocks, their companies, different trading strategies, and geopolitical and economic events to make effective trading decisions. You can read on the internet or watch YouTube videos and TV shows related to the stock market and brush up on your knowledge.
- Start Small
If you are a beginner, you must first focus only on one or two stocks for intraday. When there are fewer stocks, it becomes easy for us to find better opportunities. So, when you are beginning, keep the things simple and less in numbers so that you can focus and gather knowledge qualitatively.
- Set Proper Time
Intraday trading requires your time as well as attention. You need to invest sufficient time in research and tracking the geopolitical and economic events around the world. Set a proper timetable and dedicate a good amount of time.
- Time Your Trades
Don’t trade any time. Try to recognize the movements and the patterns of the stock market and understand when is the right time for you to invest. Knowing when not to invest is equally important. You can use technical charts of the stocks to understand their price trajectory and breakout points.
- Be Realistic About Profits
Don’t be duped by expectations of huge profits just to realize later that those stocks were not even fundamentally strong enough to give you decent returns. Also, try to remain mentally prepared for both profits and losses. You must accept losses at times and take them as learning to understand where things went wrong. Be hopeful but yes, at the same time, be rational.
- Stay Calm
Another important thing to do while making intraday trades is to stay calm. As intraday traders, people often get into panic mode as soon as their stocks dip. But remember, panicking will not be good either. It will further distort your peace of mind which is highly required at such times.
- Stick to a Strategy
After you have studied the company and the stocks and know where you have to invest, make a proper plan and make sure you stick to that plan. Give time to your research to show results. Don’t be in a hurry and avoid jumping from one strategy to another.
Intraday trading requires you to devote time to research and be patient with your picks. Make use of the strategies mentioned above and improve your intraday trading!