Stock Trading

Five Simple Tips for Successful Intraday Trading

Investing in the stock markets is one of the most effective ways of boosting your wealth. One such way to invest in the stock market is intraday trading.
The buying and selling of shares within a single day in termed as intraday trading. It is one of the best trading strategies that helps you reap the benefit of small fluctuations in the market. Intraday trading tips help investors to gain benefit from both rising and falling market conditions as opposed to long term trading that can only benefit from a bull run. However, for those of you who are not familiar with intraday trading, making profits might seem difficult initially. Since the markets fluctuates in a fraction of seconds, a day trader needs to be quick in order to make profits.
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Here are few simple intraday stock tips that will help you to achieve more profits:-

1.Trade liquid stocks: - Liquidity of a stock is the most important rule when it comes to selecting stocks for day trading. A stock with a high average trading volume can be termed as a liquid stock. Liquid stocks are apt for day trading as they can be bought and sold in ample quantities without causing much impact on the prices. With liquid shares, a day trader will not face any trouble finding buyers or sellers.

2. Avoid unpredictable or chaotic stocks: - The stock with low trading volumes or stocks where some big news is soon expected have a tendency to trade in a very unpredictable manner. Generally, when a company announces some important news such as more profits, big orders, plant shutdowns etc. the stock are traded in a very chaotic manner. While day trading, it is better to avoid such chaotic stocks.

3.Move with the trend: - For a day trader it is always advisable to move with the market. If the market is in an upward trend, try to find stocks that are expected to rise as instead of looking for stocks that may fall.

4.Research thoroughly: - Most of the day traders fail to do ample research about the stocks they trade. Identify a sector such as the BSE Sensex or the NSE Nifty that appeal to you the most. Then create a list of stocks that appeals to your interests. It is also a great idea to go through the quarterly results announces by companies, this will help you understand how the market reacts to the results.