Intraday trading is not a Rocket science. There are some strategies which has to be followed in order to be successful in Intraday trading.
1) Analyze the market:
Its very important to analyze the stock market. You should know how the entire market is going to behave today, before you start trading.
2) Find out the market trend:
Find out whether the market is going to be bullish, bearish or whether its going to trade in narrow range. If the market is going to be bullish, then you should first buy and then sell bullish shares. On the other hand if the market is going to be bearish, then first short sell and then buy the bearish shares. Whereas, in narrow range trading, you have to wait for right opportunity and then enter into trade.
3) Follow the global market cues:
Indian markets usually follow the global markets. The Global cues will have an effect on Indian markets.
4) Don’t trade against market direction:
Its always advisable to act in accordance with the Stock market direction in order to earn profits. Now the question is, why you have to act in accordance with the market. Its mainly because, shares also move in accordance with the market direction. So, if market is in green then first buy and then sell, if the market is in red, then plan to short sell and then buy.
5) How to choose specific share:
Shares which have more liquidity is best suitable for trading. If you choose such shares, then there will be no problem to enter and exit from the trade.
You can also choose the shares according to the Stock market direction. If the market is bullish, then choose bullish shares, whereas if the market is bearish, then choose bearish shares.
6) Wait and watch for the signal:
You should wait and watch until you get any signal either to buy or sell. Its very important to keep continuous watch on Stock market, because if market reverses, then your shares are also going to reverse. If you are not sure about the market and share direction, the don’t trade for that day. Everyday is not the trading day.
7) Time to trade:
Once you are done with analyzing the stock market and choosing the specific share, its time to trade. Intraday Trading can be done by anyone, but in order to do successful trading, you should take appropriate decision at right time.
These strategies may sound time consuming, but for newbies it can take an hour and for experts it may take just seconds or minutes. If you still have any doubts regarding the Intraday trading or stock market , its advisable to take the help of the best Stock advisory company which provides Intraday tips.