Intraday trading has become the most happening place for most of the traders in the market. But many a time’s people face a lot of problem due to the heavy movement and volatility in particular scrip and as a result they suffer the ultimate loss. Here are some tips or steps through which one can select a particular stock record its movement and then safely trade upon it. The key points that should be kept in mind are
- Have a look at the market trend.
- High volume, high liquidity.
- The most happening sector.
And then comes the most important one
- One should enter into the trade very carefully because there should be movement in the stock at that price.
Now once the traders have taken note of the above points then start the calculation of the stoploss and targets and that could be generated and calculated through technical analysis which includes the support, resistance, buying or selling pressure.
The traders should keep in mind that they should work upon those stocks only on which they have already worked upon and have seen the movement carefully. This reduces the risk levels; this can be done by polishing the technical analysis through various sites like valuenotes.com etc which may be valuable for effective analysis. One more thing can be done that is evaluate your previous levels or the points of trade in that stock and see what were the conditions at that particular time, this will make your analysis more accurate and also produce profit for you in long run. Do not blindly follow the equity tips given by the advisors or the advisory companies rather do a deep analysis of the tips according to our way of analysis and then safely trade upon it.
There are various indicators being used for the analysis of the targets and the stop loss calculation like macd, rri, SSO, EMA cross over etc. These indicators are no doubt helpful but the main thing is one should have its proper usage as well as should have proper knowledge over using it.
The targets and the stop loss should be properly chosen and through these indicators one can get ascertain of the levels at which one should enter the trade and when not. This will enhance your skills in intraday trading. The stop loss is very essential for any trade as Indian share market is the most volatile space for trading and may show reversal at any point of time so in order to avoid loss the stop loss should be put upon your entry point and the most important thing, it should be about to the total percentage of the amount invested by you in the trade.