Choose Two or Three Liquid Shares

Intraday trading involves squaring open positions before the end of the trading session. This is
why it is recommended to choose two or three large-cap shares that are highly liquid.
Investing in mid-size or small-caps can result in the investor having to hold these shares
because of low trading volumes.
Determine Entry and Target Prices
Before placing the buy order, you must determine your entry level and target price. It is
common for a person’s psychology to change after purchasing the shares. As a result, you may
sell even if the price sees a nominal increase. Due to this, you may lose the opportunity to take
advantage of higher gains because of the price increase.
Utilising Stop-Loss for Lower Impact
Stop loss is a trigger that is used to automatically sell the shares if the price falls below a
specified limit. This is beneficial in limiting the potential loss for investors due to the fall in the
stock prices. For investors who have used short-selling, stop loss reduces loss in case the price
rises beyond their expectations. This intraday trading strategy ensures emotions are eliminated
from your decision.
Book Your Profits When You Reach Your Target
Most day traders suffer from fear or greed. It is important for investors to not only cut their
losses, but also to book their profits once the target price is reached. In case the individual
thinks the stock has a further possibility of rising in price, the stop loss trigger must be
readjusted to match this expectation.
Be a Trader Rather Than an Investor
Intraday trading, as well as investing, requires individuals to purchase shares. However, factors
for both these strategies are distinct. One kind adopts fundamentals while the other considers
the technical details. It is common for day traders to take delivery of shares in case the target
price is not met. He or she then waits for the price to recover to earn back his or her money.
This is not recommended because the stock may not be worthy of investing, as it was
purchased only for a shorter duration.
Research your Wish list thoroughly
Investors are advised to include eight to 10 shares in their wish lists and research these in
depth. Knowing about corporate events, such as mergers, bonus dates, stock splits, dividend
payments, etc., along with their technical levels is important. Using the Internet for finding
resistance and support levels will also be beneficial.
Don’t Move Against the Market
Even experienced professionals with advanced tools are not able to predict market movements.
There are times when all technical factors depict a bull market; however, there may still be a
decline. These factors are only indicative and do not provide any guarantees. If the market
moves against your expectations, it is important to exit your position to avoid huge losses.
Stock returns can be huge; however earning smaller gains by adhering to these intraday trading
tips & strategies should be satisfactory. Intraday trading provides higher leverage, which
effectively provides decent returns in one day. Being content is crucial to succeeding as a day
trader.
Rules for Intraday Trading
Most traders, especially beginners, lose money in intraday trading because of the high volatility
of the stock markets. Generally, losses occur due to fear or greed because, while investment is
not risky, the lack of knowledge is.
Basic Rules for Intraday Trading
Most traders, especially beginners, lose money in intraday trading because of the high volatility
of the stock markets. Generally, losses occur due to fear or greed because, while investment is
not risky, the lack of knowledge is.
Below are few basic rules for trading in intraday:
Timing the Market:
Experts often recommend individuals avoid trading during the first hour, once the markets open.
Taking positions between noon and 1pm can increase the possibility of earning profits.
Plan Investment Strategy and Stick to it:
Every time users initiate a trade, it is important for them to have a clear plan of how to do
intraday trading. Determining the entry and exit prices before initiating the trade is crucial. One
of the most important intraday trading tips is to use the stop loss trigger to reduce the potential
loss on your position. Moreover, once the stock achieves the target price, users are advised to
close their position, and not be greedy and expect higher profits.
Exiting the Position under Unfavourable Conditions:
For trades that provide profits and price-give reversal (price expected to show reverse trends), it
is prudent to book the profits and exit open position. In addition, if the conditions are not
favourable to the position, it is advisable to immediately exit and not await the stop-loss trigger
to be activated. This will help traders reduce their losses.
Invest Small Amounts that Won’t Pinch:
It is not uncommon for beginners to get carried away once they make some profits during day
trading. However, markets are volatile and predicting the trends is not easy even for seasoned
professionals. In such situations, beginners can easily lose all their investments. This is why an
important intraday tip is to invest smaller sums that a user can afford to lose. This will ensure
individuals do not face financial difficulties in case the markets do not favour them.

Research and Choose Liquid Stocks:

Before commencing intraday trading, it is recommended to understand the basics of the stock
market, and the fundamental and technical analyses. There is plenty of research available on
the Internet and taking the time to read it will be advantageous. Moreover, there are hundreds of
stocks that are traded on the equity markets and traders must trade only two or three liquid
stocks. Liquid stocks are those shares that have high volumes in the intraday market. This
allows traders to exit open positions before the end of the trading sessions.
Always Close All Open Positions:
Some traders may get tempted to take delivery of their positions in case their targets are not
achieved. This is one of the biggest errors and it is crucial to close all open positions even if
traders have to book a loss.
Spend Time:
Day trading is not for professionals who are employed in a full-time job. Traders must be able to
monitor the market movements throughout the market session (from opening bell until its
closing) to enable them to make the right calls as required.
Intraday Trading indicators
When it comes to booking profits in intraday trading, you will require to do a lot of research. For
the same purpose, you need to follow certain indicators. Often intraday tips are believed to be
the Holy Grail; this, however, is not entirely accurate. Intraday Trading indicators are beneficial
tools when used with a comprehensive strategy to maximize returns.
How to make profit in intraday trading
Intraday traders always face inherent risks that exist in the stock markets. Price volatility and
daily volume are a couple of factors that play an important role in the stocks picked for daily
trading. Traders must not risk over two per cent of their total trading capital on a single trade to
ensure the right risk management. So here are a few tips shared to make profit in intraday
trading.
Intraday Time Analysis
When it comes to intraday trading, daily charts are the most commonly used charts that
represent the price movements on a one-day interval. These charts are a popular intraday
trading technique and help illustrate the movement of the prices between the opening bell and
closing of the daily trading session. There are several methods in which intraday trading charts
can be used. Below are some of the most commonly used charts while intraday trading on the
Indian stock market. Know more about intraday trading time analysis.
How to Choose Stocks for Intraday Trading
To succeed as a day trader, it is important to know how to pick stocks for intraday trading. Often
people are unable to make profits because they fail to select appropriate stocks to trade

Day trading, if not managed properly, can have drastic results on the financial well-being of
users. The temptation of earning huge profits in a short period of time can entice traders.
However, with incomplete understanding and knowledge, intraday trading can be harmful.
Intraday traders always face inherent risks that exist in the stock markets. Price volatility and
fluctuating daily volume are a couple of factors that affect the stocks picked for daily trading.
Ideally, Traders should not risk over two per cent of their total trading capital on a single trade to
ensure the right risk management. However, the desire to earn higher profits often compels
traders to risk more. In order to balance the risk taken, while achieving higher returns, here are
some tips to follow:
How to Make Profits in Intraday Trading
In order to earn profits, here are some of the proven intraday trading strategies:
Opening Range Breakout (ORB):
This intraday trading strategy is widely used by professional traders as well as amateurs. To
maximize the potential of this strategy, combining it with the optimum use of indicators, accurate
assessment of market sentiment and stringent rules are recommended. ORB has numerous
variations; some traders may opt for trade on large breakouts from the opening range and
others choose to place their trades on the opening range breakout. The time window for the
trades ranges between 30 minutes and three hours.
Mapping Resistance and Support:
Every stock price fluctuates within a range from the initial 30 minutes of the start of the trading
session, which is known as the opening range. The highest and lowest prices during this period
are assumed as the resistance and support levels. It is advisable to buy when the share price
moves beyond the opening range high and sell if the price falls below the opening range low.
Demand-Supply Imbalances:
An important intraday trading tip for beginners is to look for stocks where drastic demand-supply
imbalances exist and opt for these as entry points. The financial markets follow the normal
demand and supply rules—price reduces when there is no demand for higher supplies and vice
versa. Users must learn to identify such points on the price chart through research and studying
the historical movements.
Opt for 3:1 Risk-Reward Ratio:
Traders, especially beginners, must understand the appropriate risk-reward ratio. Initially,
finding stocks that provide a potential risk-reward ratio of at least 3:1 will be beneficial in earning
profits in share market investment. This strategy will allow them to lose small while giving them
the opportunity to earn big even if they have losses on most of their trades.
Relative Strength Index (RSI) and Average Directional Index (ADX):
Combining these two intraday trading strategies to find buy and sell opportunities can help
traders earn profits. The RSI is a technical momentum indicator comparing recent losses and
gains to determine over purchased and oversold stocks. The ADX is beneficial and used to
determine when the prices are showing strong trends. In most scenarios, if the RSI crosses the
upper limit, it is indicative of a sell trade and vice versa. However, when you combine the RSI
and ADX, intraday traders buy when the RSI crosses the upper limit and vice versa. The ADX is
used as the trend identifier to help users take their buy or sell decisions.
Intraday trading involves same-day trade settlements. Most traders try to achieve smaller profits
through their trades. The golden intraday tip is to ride with the market trend to help make profits.
Angel Broking’s Angel Eye has charts and portfolio watch tools that helps in identifying trends,
and thus helping traders to make better decisions. This will help traders to earn profits from
Intraday Trading.
Is intraday trading good for beginners?
It’ll take you some time to trade like a pro in the market. But you can still earn a profit if you keep
these simple tips in mind.

 Take time to understand the market

 Knowledge is power, so do your research
 Set aside a fund to infuse when required
 Start small; trade-in one or two stocks at the beginning
 Invest time to track the market for the right opportunities
 Keep a realistic view about profit
 Intraday trading happens during the busiest hours in the market; take your position after
the market is open for at least an hour
 Minimise your losses with limit orders. It allows trading with more precisions
 Build a strategy and stick to it
What is the simplest intraday trading strategy?
Intraday traders earn profit from market volatility, but they also observe market trends for a
period to plan their moves. Don’t trade during the first hour of trading; this time market remains
more volatile. Start trading after you get a fair idea about the opening range.
Is intraday trading profitable?
Yes, but if you are a new trader, you need to adhere to the basic intraday trading rules to avoid
losses.
Profiting from intraday trading depends on several factors, but most importantly, on the right
selection of stocks with high liquidity. Modern stock market tools are sophisticated to help you
plan the right entry moment. Thirdly, opt for stop loss to keep loss at a marginal level.
Quick and high returns entice investors to the share market. However, there are some
fundamental tips that must be followed to prevent losses. Below mentioned are the elementary
share market tips:
Choose Strong Fundamental Companies: Avoid investing in penny stocks and choose
companies with strong fundamentals. This provides some assurance of the companies being
able to withstand share market fluctuations. In addition, these offer better returns in the long-
term and offer greater liquidity for the investors. Research and Do your Due Diligence Many
people avoid researching either because they want to avoid making the effort or because they
do not understand the technical terminologies. However, it is vital that investors take the time to
research the companies and the share market to make appropriate decisions. Before investing
in a company, conducting sufficient due diligence about it will help investors understand the
future. Avoid Being Greedy: The share markets are unpredictable and highly volatile. Even
professional traders are unable to correctly time the market movements, which makes it nearly
impossible for beginners. Investors are advised to determine their entry and exit prices before
investing their funds. Moreover, once the targets are reached, they must close their positions
and book profits. An important share market basic is to never be greedy with the expectations of
market conditions become more favorable to their positions. Work with reliable Intermediaries:
Dealing with reliable and reputed intermediaries will be beneficial to the investor. In addition to
providing a safe and secure trading platform, such intermediaries offer several value-added
services. They often provide research reports and other useful information about the share
market to clients. Moreover, they offer excellent customer services to ensure that any issues
faced by the account-holders are immediately resolved in the most efficient manner. Avoid
Being Enticed by Sector Performances: At every point in time, experienced and professional
traders have sector preferences. They base their decisions based on several economic and
other related factors. Individual investors are warned against getting overwhelmed by these
sector preferences. They must remember that not every company in the sector is worth
investing. In addition, the largest company in the sector is not always the best. Investors must
once again remember the share market basics, research the sector and undertake due
diligence on the various players within the same. Investing in Low-Priced Stocks is Not Always
Profitable: Low-priced stocks, often known as penny stocks, are tempting to a large number of
investors. The primary reason for this is the fact that these stocks offer a huge potential to earn
large profits. However, the risks associated with penny stock investing are extremely high.
Investors are advised to remember that the company shares are priced low because of its poor
performance and it is prudent to avoid investing in them.