Things to know before doing Intraday Trading

Posted: Sep 05, 2011 |

Dealer or person buying or selling stocks, shares, commodity or currency futures and options in the market and exiting on the same day is called a Inrta day trader. In general, companies or trader with access to large amounts of capital benefit out of small to large short-term price movements. Intraday traders are experts in their profession. Intraday traders not do trading as an hobby but as an method of earning for living.

Anyone who is doing Intraday trading without understanding the fundamentals of the market will lose money on the same day. Start Intraday trading only if you can afford to lose your capital or have risk capital. Professional intraday traders are ready to lose large amount. This concept allows them to trade such as Rs.1 lakh in the stocks without investing and holding. They book the Profit or Loss on the same day. Intraday traders watch out on stocks traded in High Volume with good price variations between opening and closing rate. They use tools such as pivot point calculator to watch out for support and resistance values. They keenly watch out for news related to the stocks which are near breakout and having positive or negative signals such as Bullish or Bearing Engulfing pattern, RSI curve crossing oversold or overbought zone etc. Such strategies are refined until it has become common, so do not expect to have some knowledge of it within few trading attempts.

Discipline needed to succeed. Learn as many technical analysis methods as possible and continuously watch the stock movements since retails traders have less advantage than institutional intraday traders, because they have less trading capital and have limited tools and technologies. Institutional Intraday traders have access to a large amount of trading capital and use the best tools and technologies. Institutional Intraday traders get stock before the news comes on the market because they follow the news from many resources. They are directly in the trading desk and have the ability to quickly implement the order.

Free Intraday Tips and Free Technical analysis tools are available in Internet, make the best use of them for profitable Intraday Trading.

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