As the name suggests, Intraday Trading is the process of buying and selling stocks on the same day. Basically, you buy stocks on daily basis, you look for a reasonable price to sell it and then earn your profit.
Daily analysis and research is necessary for Intraday Trading. The movement of the market’s momentum must be reflected in the strategy used by a trader.
It is advisable to look for liquid shares for Intraday Trading. As the trader needs to square-off their position at the end of the day, it is better to go for large cap shares.
Do not try to move against the flow of the market. Even the people who have been trading for over a decade fail to explain and predict the situation of the market.
Do's in Trading
You have to have a clear idea before doing anything
Manage to control your greed and fear once you get into this business.
Daily analysis and research is necessary for Intraday Trading.
Update what you are working upon with the trends in the market & implement.
Don'ts
Do not always pay heed to the rumors around you until and unless you are certain about it.
Do not plan for the future with any stock. Whatever you buy is what you would sell today
Do not always expect gains in trade.
If one gains, the other has to lose.
Tips and Tricks for Intraday Trading
Utilizing the Stop Loss
Set your Targets
Research
Learn when to Exit
Initial Public Offers are usually issued by those companies seeking to raise capital or wanting to get access to funds in order to expand their operations.
When a company’s stock is listed in the stock exchange and available for the public to buy and sell stocks, at that point in time that company’s stock is considered to be available in the secondary market.
Here, wave A is the first price wave that is against the trend of the entire market. B wave is a corrective wave for wave A. Wave C shows the final price move to complete the counter trend price move.
Remember👇
Alphabetical labeling helps to differentiate between the degree or level of the wave. It speaks to the span of the basic pattern.
Stock chart patterns often signal transitions between rising and falling trends.
These patterns can be as simple as trendlines and as complex as double head-and-shoulders formations.
Since price patterns are identified using a series of lines or curves, it is helpful to understand trendlines and know how to draw them. Trendlines help technical analysts spot support and resistance areas on a price chart.
A chart pattern is a shape within a price chart that helps to suggest what prices might do next, based on what they have done in the past.
In Technical Analysis, a candlestick pattern is a movement in prices shown graphically on a candlestick chart that some believe can predict a particular market movement.
History:
Some of the earliest technical trading analysis was used to track prices of rice in the 18th century. Much of the credit for candlestick charting goes to Munehisa Homma (1724–1803), a rice merchant from Sakata, Japan who traded in the Ojima Rice market in Osaka
Formation of the candlestick:
Candlesticks are graphical representations of price movements for a given period of time. They are commonly formed by the opening, high, low, and closing prices of a financial instrument.