Among the most critical aspects of intraday trading is the choice of stocks. It’s vital to choose shares with large trading volumes as these tend to have more liquidity than smaller or mid-cap shares. Also, when trading intraday, it’s crucial to diversify your positions to reduce your risk quotient.
Whether you’re new to trading or have been doing it for a long time, it is important to know your stoploss point. This means knowing when to buy or sell and not trying to guess when a market is going to turn around. Most specialists recommend that you keep your stop loss at 1/3 of expected benefits.
Using a plan is another key tip for intraday trading success. A plan will help you stay focused and make the best decisions. You’ll need to have a specific strategy that outlines your entry and exit positions. You’ll also need to know how to use stop loss triggers and not get swept up by the market’s emotions.
Intraday trading is riskier than regular trading and most traders lose money. It’s important to understand this fact before starting. You should never risk more than two percent of your trading capital on a single trade.
