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What is Intra day Trading ? Intraday Trading or Day Trading is the system where you buy shares and release that position before the end of the day trading session. Each day a price of shares have four milestones.They are Open,High,Low,Close.On a normal look they look nothing important but you have to identify which milestone has been touched and which one is left.At open identifying the trend for the day is difficult.If you have some fundamental information on a stock that might help you in identifying the trend early.Normally at the open time it is best to let the stock decide which way it is going to go and then you jump in.Open price should always be seen in the light of previous day’s end of the day charts. Advantages of Intra day Trading 1.You are not concerned about whether the market is going down or up. 2.You are not concerned with market sentiments. 3.You are not concerned with the fundamental strengths like market reports and market capitalization (or the lack of it) of any company. 4.All you need to predict is that the stock price will either rise or fall very sharply in the course of the day. Basics of Intra day trading ? Primary objective of any intra day trader is to make profit in a day as maximum as possible. Usually intra day traders do not worry about market up and down.They just predict the market price of the shares they want to invest. 1.There are 1000+ scrips listed at NSE and BSE Which goes up and down many a times in a day. The very first thing is to select 5 -7 scrips in which you want to trade. 2.Choosing stocks to buy is a not a very easy process. Rather you must see the market capitalization of the company.As a new investor to the market you must always trade in the blue chip stocks. 3.Statements like "ABC has gained by 25 points today" is good news to many players in the stock market. But it has no meaning in intraday trading if ABC has opened 24 points higher than yesterday's close and has then risen by only 1 point throughout the day. Two good day trading practices help limit the effects of making a bad decision: 1.The first is the use of stop and limit orders, which automatically close out losing positions. 2.The second is closing out all positions at the end of every day, which lets traders start fresh the next day. Author Alok Ray is a Research Analyst in a financial advisory company, which basically provides stock recommendations, share tips, nifty intraday tips and commodity tips Indian stock market investment.
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