Each and every trader desires to make money from share market in a play way manner. It is well known that day trading is one of the golden options that deals with fast paced purchasing and selling of securities simultaneously on the same day. You may make your dream of gaining gigantic profits by following some of the golden rules related to intraday trading.
10 Golden Rules for Successful Intraday Trading
Those easy to follow golden rules have been mentioned in a nutshell as under:
- Trading only with best stocks of trading – It is well known that each and every stock is not fit for gaining a handsome profit. By going through some of the selective as well as well recognized stocks of intraday trading, it will be easy to fetch the desired profit.
As these stocks belong to large cap sector, you will be able to make your position through multiple opportunities.
- Following three E’s –Traders require to enter, exit and escape a price to get through the activity of trading. Entry price implies to the price required for entering into the intraday trading while exit price refers to the one through which you may exit the trade in a profitable manner.
As trade always does not work as per convenience, escape price gains higher significance.
- Trading with money on which loss incurred may be affordable – Trading is just like a game where you may either gain or run into loss. If you are a gainer, then you may think ahead. Else, you must hold the ability to make up the loss incurred. Thus it is better to trade with the money on which loss incurred maybe affordable to you.
- Making positions with limited orders – Market order is considered to be a default trading option that is highly volatile. It involves purchasing cum selling of equity immediately at market price. But it does not guarantee high profit! While in case of limited orders, one may execute a stock against a specific price. Thus it is the best option!
- Performing appropriate research and analysis – Without proper knowledge, one must not jump into the world of trading. Through in-depth research you will be able to know the nook and corner in association with intraday trading thus enabling you to prevent unnecessary losses.
- Maintaining record of losing as well as profitable trades – By going through previous trade records, it will be easy for you to prevent the mistakes that you incurred previously. Through this manner you may easily deal with stock movements in a better manner. You will also learn more!
- No need to trade each and every day – Share trading is a bit tricky and challenging procedure! Markets remain open 24*7*365. But it is better to opt for trading only when you are physically as well as mentally prepared for the same. This will enable you to gain a better position.
- Bidding goodbye to emotions – Emotional stability is essential for fetching of successful profit in trading market. In order to fetch high level of profits, it is advisable to bid goodbye to emotions. One must prevent himself from getting too much excited after fetching handsome profit or getting too much depressed contradictorily.
- Trading in few scripts – As close tracking of stocks is required on a regular basis, it is better to trade with a maximum of 3 scripts at a time. It is easy to monitor and keep a close watch at them thoroughly.
- Using script stop loss order – It is possible to cut losses with the help of script stop loss order. It is better not to change the position of stop loss order as it may lead towards inconvenience.
By following these golden rules, you may fetch high success!