Friday, 15 December 2017

Traders Must Assume Profits and Losses as a Part of Intraday Trading

Traders who study markets can generate good profits in intraday trading. Traders can start with reading markets and keep themselves updated with both domestic and international markets. They can also read about company updates, government updates and so on. These are those factors, which will affect the direction of stock markets and this is what the trader needs to concentrate on.

You must have a practical approach

The intraday stocks always move based on the market sentiment and hence if you have to make profits in intraday; the trade has to be based on the movement of the stock market. For example, if the market is bullish, then buy and sell a few times to earn small profits rather than waiting for that big move. Similarly, if the market is bearish, you can short sell and buy at the lower levels to gain some small profits with 2-3 trades.

Reduce your losses

Intraday trading is all about generating small profits with multiple trades. This helps reduce the losses and generate daily profits. One way the traders can reduce the losses is to wait for the right time to trade rather than trading at every move in the stock 's price.

Never wait to generate huge profits in just trade; instead, plan multiple trades and earn small profits. Many times traders tend to overtrade and they end up in losses. When it comes to intraday trading, no one has the control over the movements of stocks and hence if the trader waits too long and the direction of the stock reverses, the trade then enters into a loss.

Another important aspect to remember during intraday trading is to use stop losses. Stop loss helps to minimize your loss in case of sudden reversal in the direction of the stock.  One also has to be careful not to use the margin amount that is provided by the broker. If you do so, the trade has to be squared off before the closure of the market irrespective of loss or profit. If the trader just uses the money, he/she can opt for the delivery of shares bought if the trade gets to loss.

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