10 Intraday Trading Principle’s for Beginners

10 Intraday Trading Principle’s for Beginners

  1. Knowledge of the share market is the key to success.
  2. Protect the capital first.
  3. Start with a small Quantity.
  4. Avoid investing in penny stocks
  5. Don’t Follow others instructions
  6. Don’t go beyond the plan.
  7. Always stay cool.
  8. Focus on Entry, Exit, and Stop Loss.
  9. Don’t take trades through your mobile application
  10. Be Realistic About Profits

Knowledge of the share market is the key to success

Intraday trading is the most popular thing now day’s after the discount brokers comes into the picture of the share market. Day Trading is the act of Buying and Selling Stocks, Options, and Futures within the same day time period or even one can trade multiple times in a single day.  If it is done in the correct manner. But it can be a dangerous or serious financial threat game for Beginner or anyone who doesn’t adhere to a well-tested strategy. The part of Knowledge of the market is really a key to success into this domain. If someone thinks that without understanding the market, one can be a master of intraday day trading, which is an impossible task to do so. Then it is better to learn the market first and start taking trades afterward.

Understanding the value of the Protection of the capital.

We all must learn from Warren Buffet’s experiences about the share market that, he has quoted about the preservation of capital first before entering into any intraday trades or any kind of investing.

“Never invest in a business you cannot understand”.

 Rule No. 1   “Never lose money”

 Rule no.  2   “Never forget rule no.1”

If you lose your capital into the market then you will not be able to buy and sell any trade in the future.

Avoid investing in penny stocks

You are probably seeking best deals and low prices of shares but one must stay away from this kind of penny stocks. These stocks are often illiquid in nature, and chances of hitting a jackpot are often very low.

Many penny stocks trading a share become de-listed from major stock exchanges. Unless you see a real opportunity and have already done your proper research, stay clear of these.

Don’t Follow other’s instructions/tips.

We must understand one most important thing is that no one else will come and make you rich as per his learning and instructions. Don’t try to follow other person instructions or even tips of buying and selling without understanding the market. Firstly, try to learn and get proper mentoring before entering into it.

Always stay cool

There are times when the stock markets test your nerves and patience level. As an intraday trader, you need to learn to keep away greediness, hope, and fear. Your decision power should be governed by logic and not emotions.

Start with a small Quantity.

As a beginner of an intraday trader, you should be focused on a maximum of one to two stocks during a day session. Analyzing and finding new opportunities is easier with just 1-2 stocks only. So you can specify specific, small amounts of your capital you wish to invest which actually cuts the probability of losses.

That means you have a total amount of Rs. 10000/- & if you would like to buy share SBI, Tata Motors. Which are trading at Rs. 250 and Rs. 350 and you only want to buy 10 shares each of worth with diversification strategy into different stocks, many brokers will now let you purchase one-fifth of a share.

Don’t go beyond the plan.

While day buying and selling, Successful merchants have to maneuver quicklyhowever, they should not assume quick. Why? Because they’ve developed a buying and selling technique prematurelytogether with the self-discipline to stay to that technique. It is essential to comply with your system intently moderately than attempt to chase income. Don’t let your feelings get the most effective of you and abandon your technique. There’s a mantra amongst day merchants: “Plan your trade and trade your plan.”

Before we go into a number of the ins and outs of day buying and sellinglet’s take a look at a number of the explanation why day buying and selling will be so difficult.

Don’t take trades through your mobile applications.

We should not try to use mobile applications while trading Intraday, because there is a lot of things that need to remember and act simultaneously. Therefore, a mobile application is not the appropriate way in comparison to laptops and desktop. You actually required a wider display to understand all aspects of trading.  

Focus on Entry, Exit, and Stop Loss.

While trading intraday one must understand the importance of taking Entry, Exit, and Stop loss if you are not focusing on all aspects of trading psychology. It is next to an impossible task to get desirable profits. One way by your luck you get something from the market but in another way you again will face losing your profit. That entry and exit with perfect SL methods are clearly defined and written down.

Be Realistic About Profits

A strategy doesn’t need to win all the time to be profitable. Many Intraday traders only win 45% to 55% of their trades. However, they try making more on their win than they lose on their losers. You make sure the risk on each trade should be limited to a specific level of the account.

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