Intraday Trading in Stock Market

Intraday trading is one of the most popular ways of trading in the stock market. It actually refers to the practice of buying and selling on the same day. Intraday trading can be profitable only if it's done correctly. It also carries high risk, but one can make a profit only if it's done with proper strategy, risk management, discipline and proper psychology.

Intraday trading can be done in two ways:
1. First buy before sell; for example, if you bought at 100rs and sold at 105rs, you made 5rs profit.2. First sell, then buy; for example, if you bought at 100rs and sold at 95rs, you made 5rs profit.

Basics of Intraday Trading:
Intraday trading involves the buying and selling of shares, futures, and options during the same trading session. If the purpose of intraday trading is to make profit during the day trading session by taking advantage of the volatility of the stock market.

To start your intraday trading journey, all you need to do is open a trading account with a broker company, through which you can buy and sell orders through the broker's trading platform. While doing intraday trading, it requires a lot of focus and attention; one needs to keep track of the market.

Types of intraday trading strategies:

There are several strategies that day traders can use to make profitable trades. Here are some popular intraday trading strategies used in the stock market:1. Scalping involves buying and selling quickly within a few minutes to make a small profit. In this strategy, traders take advantage of small price movements in a stock and sell their position as soon as they reach their profit target.

2. Momentum trading is a strategy in which traders buy stocks that show strong momentum and hold the stocks for a short period of time. While trading in a momentum strategy, one needs to do careful analysis of the market trends and the momentum of individual stocks.
3. This is a news-based trading strategy where traders buy or sell stock based on the news events that can affect the market or a particular stock. This strategy requires a close analysis of news sources to determine how the news can affect the stock market or a particular stock.
4. Swing trading is a strategy where the traders hold the stock for a few days, one week, or a month by taking advantage of the stock's swing moment for some period of time. If you are trading with technical analysis, you need to watch a higher time frame, like 1 hour or 4 hours, and a daily time frame, which is a suitable time frame for trading in a swing strategy.

Risk involved in intraday trading:
Intraday trading can be profitable, but one needs to be very careful as it involves high risk. The prices of stocks can change rapidly in a short period of time, and traders need to be able to react quickly to make profitable trades. As the risk of losses can be high if one does not have proper risk management while trading intraday, having a disciplined approach to risk management can keep their capital safe and allow them to consistently make profits over a period of time.

A trader need to have fine knowledge about technical analysis in order to trade in intraday trading, one can look our course to get a guide from basics to advanced from our technical analysis course

Conclusion:
Intraday trading can be a profitable way to trade in the stock market, but it requires careful planning, risk management, discipline, and psychological control. Traders need to have a clear understanding of the strategies they are using, the risks involved, and the importance of sticking to a trading plan..

Thanks

Class Course

Blog posts, articles and other text-based contents, if they are original work of the website owner and involve intellectual content then it is copyrightable material. Layout and other processes of website creation cannot be copyrighted. As it falls under the literary works as per section 2(o) of the Act.

Intraday Trading in Stock Market

You may also be interested in