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1. Identify Strong Stock Trend:
It is the most difficult job in the stock market. Any error in judgement means huge losses. Also, remember that in the highly volatile market, the trend is short lived. It makes the job of stock selection more difficult. It is important to identify a definite trend in the stock to make money. This trend can be uptrend or downtrend. Intraday Trading based on weak trend may result in losses. There may be days when you will not find stocks with strong trend therefore simply back out of Intraday Trading. In short, you should not trade just for the sake of trading. As a golden rule, you should initiate Intraday Trading only if you identify stocks with a strong trend.
2. Initiate Early Trade:
According to our research team it was analyzed that initial 15-20 mins of morning trade were highly volatile. Generally traders suggest trading after 20-30 mins of early trade. So we made a note that the trends are established in within 30 mins with no trade is left for the day. The in stabilization results in stabilize prices and further movement is limited. In the case of stocks with a strong trend, a position can be taken within few mins and profits are more in such stocks. At the same time, it is very risky. A risk-free approach is to wait for 20-30 mins before taking any position. In short, for Intraday Trading you should take a position within 30 mins of trade.
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