Introduction to intraday trading
In stock market if you buy and sell share on the same day before market closes is called as intraday trading .Intraday trading is a buying and selling stocks on the same day. The main focus of traders in intraday is to make quick trades, whether it is profit or loss. It is very different from normal trading . You have to be very experienced , focused and active while intraday trading. Because wee have to take decisions before market closes. The most important thing to keep in mind while intraday trading is dont forgot to square off shares before market closes , otherwise the shares get sold automatically whether its in profit or loss.
How to find stocks for Intraday
There are many parameters to find stocks.
- Choose the stock with higher volume compared to previous days.
- Choose the stock with good momentum.
- You can select stock which which are in news, there are many chances to make good profit in that.
- Select stocks in which you have good knowledge.
Advantages of intraday trading
Intraday trading has many advantages and also disadvantages. Lets list down some of the advantages.
- You can get quick profits in intraday , so you dont need to invest your money and time for long time.
- In intraday trading , brokers offer you lesser brokerage charges compare to delivary.
- Best advantage of intraday is margin , you can get upto 5 times to 10 times margin to buy shares.
- You do not need to worry about overnight volatility in global markets.
Which Indicators to use in Intraday Trading?
According to many market analysts and researches the most useful indicators in traday trading are-
- Moving averages
- Support and resistance
- RSI (Relative strength index)
Best timeframe to trade in Intraday
Best timeframe to to use in intraday is
- 15 mins
- 5 mins
- 3 mins
- 1 mins