Many investors have the misconception that only the long-term investments in the stock market yield suitable results. On the other hand, intraday trading can also yield suitable results and help you to gain great profits – if done correctly.
Therefore, in case of intraday trading India, you square off all the open positions during the market hours within the same day. The defining feature of such a trade is that a trader never takes the delivery of the shares. A regular order is settled in T+2 days in India while intraday closes on the same day itself.
How to make money on your intraday trades?
Even before proceeding with the right strategy for venturing into intraday trading India, you need to understand the best broker and their fees for your transactions. This is because you will have to make multiple trades in a day and hence, high fees could take a toll on your final returns.
Other important aspects to consider in the intraday trading India include the following-
- Select the liquid stocks – Opting for day trading means that you need to square off the values before the end of the day. As a result, if you buy stocks that lack liquidity then you may not be able to sell the same when you exit at the end of the day. Therefore, you need to trade only in the liquid stocks. This helps you to earn profits
- Research on your options – The potential for earning profits is high in the case of intraday trading India. So, before starting with the trades, make a clear image of the same before moving in on the shares that you need to trade in. The best idea is to start with the stocks that you understand.
- Choose stocks that trend – Price movements can occur through various reasons. On the other hand, some of the stocks that mirror the movements of broad indices. It is important to note that some of the stocks have no fixed pattern and hence must be dealt with caution.
- Set a stop loss target – Brokerages provide substantial leverage for intraday trading India. This boosts your chances of earning profits or loss. Therefore, it is vital to decide a limit of stop loss. This automatically cuts down your position as soon as the share prices fall below certain limit.