Steps to Making Money in Intraday Trading

Personal Finance

How can you earn a living from intraday trading? Although success in intraday trading is never certain, following these ten measures dramatically improves your chances of doing so. Below are a few intraday trading strategies that will help you.

10 Intraday Trading Tips To Get You Started

Learn the rules governing the industry

In a nutshell, it is the structure upon which intraday trading strategies is built. It lays forth the rules and constraints that apply to your intraday trading. Consider your risk tolerance, the rate at which your funds may be depleted, and the potential rewards from taking risks.

Locating stocks for intraday trading strategies, narrowing attention to stocks, and executing and monitoring trades are all things that will be spelled out in the trading rules. The goal is to abide by your industry’s guidelines at all times strictly.

Determine how much of a loss you are prepared to accept

Indicate the maximum amount you are willing to lose before gambling. When you reach this value, you must pull back from trading and go back to the drawing board. It would help if you also chose a daily loss limit for yourself. If this happens within the first hour, you will lose access to your terminal for the remainder of the day.

Find out your risk-reward ratio by calculating the distance between your stop loss and your profit objective.

You should always use a stop-loss order while trading

Stop losses must be placed on both long and short trades. Stop-loss orders may be placed around key technical levels of support and resistance or at a price you’re comfortable taking a loss. However, after the trade has been made, it is too late to enter the stop-loss.

Your position must be liquidated once the stop loss is hit. There is no use in trying to average out your trade since the chances are against you.

Set attainable financial goals and stick to them

One of the best intraday trading tips is to set financial goals. Whether you’re going long or short on the intraday trading market, you need to have a plan. To ensure a timely cancellation of the opposite leg of the order when the stop loss or profit objective is met, these profit targets must be logged in the system as part of the bracket order.

Only add profit targets afterward, although a trailing stop loss might be used while riding the trend.

Trade in hearsay and gossip

While this may not appear important at first, trading in market hearsay is one of the most crucial intraday trading strategies. Most of the time, an announcement’s effect is included in the price or leaves little room for you to negotiate. As a result, you’ll need to base your entry into the trade on your best-educated guess and then hope to reap the rewards after the real news has been out.

Maximising the alpha from your transactions is best accomplished by following market speculation. You should invest only a small amount in rumours and suggestions from the market. At the same time, you should keep an open mind and an ear to the ground.

Take the initiative to create your charts

Do not believe that technical charting is so complex that only a few people can understand it. With a little study and practice, you can interpret common technical chart indicators such as:

  • Supports and resistances
  • Bollinger bands 
  • Exponential moving average (EMA) breakouts
  • Retracements, etc 

The most important factor in making money intraday is learning to read charts.

Only have a few opportunities for jobs at a time

In the world of intraday trading, this is a common blunder. When you have a lot of open positions, you can only keep tabs on so many of them at once in terms of fundamentals, charts, and news flows.

One way to lose money throughout the trading day is to have too many intraday trading tips trades open simultaneously. Only have up to four or five vacancies at any one moment.

Forget about making any moves if the market needs to be more clear

As a trader, you have three primary options: buying, selling, or standing still. Despite appearances, it is possible to profit in intraday trading even if you do nothing. When the market becomes too volatile, it’s best to stay away from the water altogether rather than risk being caught in the waves.

If you save up, you’ll have more money to spend when good possibilities present themselves.

Never attempt to trade counter to the market’s trend

Those who attempt to trade like value scavengers daily are the ones who end up losing money. This is what a basic analyst does for a living. The trend is your best buddy as a day trader. The market is attempting to tell you something when it exhibits a pattern.

Paying attention to this data and making sound trading decisions is up to you. You will be on the right track if you enter intraday trading with the mindset that the market is always smarter than you are.

Keep an accurate record of your deals in a trading notebook

A trading notebook is not only a record of purchases and explanations; it also evaluates results daily. You should keep accurate records of your trading failures and any ideas for fixing them. You may use this to hone your intraday trading tips and move closer to financial success.

The Bottom Line

Those who trade daily with the attitude of a “value scavenger” are condemned to fail. For a fundamental analyst, this is just another day at the office. The trend is your best buddy if you’re a day trader. A pattern in the market is a message from the market. It is up to you to carefully consider this data when you make trading choices.

You will be on the right road if you approach intraday trading with the mindset that the market is always wiser than you. If you wish to learn more about intraday trading strategies, check out the Piramal Finance website right away.