Best Intraday Trading Tips & Strategies

Intraday trading or day trading is a form of stock trading where the trader squares off on the same day before the market closes. Squaring off refers to buying and selling or selling and buying shares.
Day traders are most prone to market fluctuations because they square off on the same day. While there is high risk, the possibility of making high profits exists too. It is this possibility which attracts so many young traders towards day trading. 

One solid way to ensure a good run for day traders is day trading strategies and tips. These tips and strategies help earn maximum profits and keep losses to a minimum—something every trader wishes for. 

Here are five such strategies. 

1.  Invest What You Can Afford
Day trading involves a high element of risk. Market unpredictability can wipe you out within minutes. A smart step is to invest money you can afford to lose and repay if you have borrowed it. While you aim to make millions, be grounded for nobody can time the market.

2.   Go With Highly Liquid Shares
Intraday trading entails squaring off at the end of the day. Choose large-cap shares; these are highly liquid in nature and traded in large volumes. This will ensure there is someone to buy your shares at the end of the trading period.

3.   Use Stop Loss
A stop loss is an order to sell a share if it reaches a certain price. It is an effective method to limit losses. Say you own 200 INFOSYS shares at INR 1000 each and set a stop loss order for INR 900. If the price of the shares falls to INR 900, all of them are sold. Use this effectively.

4.   Limit The Trading To A Few Shares
Keeping a track on market action is a hard task. When you trade with eight to nine shares, it becomes harder. You will invariably end up suffering losses. Therefore, it’s best to limit your trading to two or three shares. It will help you keep an equal focus on them.

5.   Lose The Greed
Often stock traders have a good run while day trading and forget when to stop. While experiencing a good run, one shouldn’t become overconfident and invest more than he or she can handle (See point 1). The market can change its ways and turn a prince into a pauper within seconds. Book your profits and reinvest only what you can afford.

Intraday trading whilst being a stairway to millions is also a highway to losses. Use these strategies to ensure you stay on the road and earn good profits.