4 treasured intraday trading tips

 

If you are one of those people who want to make money from money and rather quickly, then intrading trading strategies can help you achieve your dream. But automated trading isn't a piece of cake. Given how high the stakes are, you need to keep in mind some tips that can help you get success on the stock exchange.

Volume of trading

As an intraday trader, you buy and sell stocks on the same day, without taking deliveries. Hence, one of the most influential factors in determining your success as a trader are the trading volumes. Since people are trying to buy low and sell high, most of the traders are solely focused on stock prices. But trade volumes play just as important a role in increasing your profit. You can sell not very high, but if you sell enough, you'd be able to reap that profit. Oftentimes, it is easier to sell in large volume than at high stock price.

Don't be impulsive

This is why you should always set your entry and exit prices. People are often swindled by market volatility and tend to change their decision, either because of fear or greed - neither of which is a good trait in a trader. As a player in the stock market, you have to be resolute and pragmatic. This you can also achieve by opting for automated trading instead of manual trading. With the help of algo trading strategies, the computer software does the trading for you. This type of trading is fast, effective, and risk-free, as unlike humans, computers are not prone to emotional swings.

Effeciently manage the risks

Here's the thing about intraday trading: there is always going to be a risk factor. Withotu that risk, there would be no reward. So, you can't really avoid risk, but if you want to become successful, you'll have to learn to manage the risks. Techniques like stop-loss are excellent at minizing risks while ensuring that you book optimum profits.

As an intraday trader, you are often juggling with factors that are beyond your control, and you need to keep in mind that the market may not perform according to your expectations and you need to have a strategy to fall back on, in such cases.

Avoid trading in the opening hour

As soon as the market opens, traders arrive in droves to buy early in order to take early postions. However, the research has shown that the stock markets are most volatile during the opening and closing hour of the day as the people are often reacting to the market performance of the previous day. This can cause the price to get skewed in either direction. Therefore, buy early only if you have done airtight research. According to statistics, the most favourable time for trading is to buy after 11:30 am and to sell before 1 pm.

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