How to make
profit from Intraday trade?
The Golden
rule of intraday trade is ride with the trend. Hence the first step to make
profit in intraday trade is to identify the stock. Intraday charts are the best
way to identify stocks for trading intraday.
Also one should make a good home work before entering in intraday trade. Home work means, study the historical charts
and find out the upward or downward moving stocks. Then see the previous days
intraday chart. Find out the support and
resistance levels. The better strategy will be buy at previous days support
level and short at previous days resistance levels. Also shorting below support
level and buying above resistance level are good ideas.
Keeping Stop
loss
Keeping stop
loss is very important for intraday trade. Otherwise one will loose heavily. Where
to keep stop loss is a very important question. Again previous days intraday
charts will help. If one shorted in a stock, keep stop loss at previous days
high or days high. Also if bought, keep stop loss at previous days lows, or
days lows. Another thing to remember is keep trailing stop loss and revise stop
loss when one is in profit. Instead of booking profit, one can keep stop loss
for profit and can revise according to upward movement. Normally this will help a lot in intraday
trade.
Panic and
Greedy
The two
things to avoid in stock market and particularly in intraday trade is panic and
greedy. When one enters in a trade and
goes in opposite direction, don’t be panic. Wait some time, keep strict stop
loss. If stop loss triggers, don’t enter
again. Wait some time and relax, watch
the market trend and enter in some other stocks. Another thing to avoid is greediness. Some people will not book profit and wait for
more and more profit. But such people will end up in loss only. In intraday trade book profit in every highs.
Wait for a dip and enter again if trend sustains.
Timing is
important for successful Intraday trade
The best time
to enter for intraday trade is after 20 to 30 minutes when the market opens. Some people will jump in
the market at the opening bell itself. It is risky always. Watch the market in
the early trades and find out the trend. First enter in some small quantity, say
25% of the quantity one is intended to
buy. Then buy more in the next 10 to 15 minutes. The
trend observed is intraday trading is stocks will shoot up till after 45 to 1 hour when
the market opens. This is the best time
to book profit. Once booked profit in a particular stock, better wait some time
and watch the next movement and enter accordingly.
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