Earning 5000 ₹ in day trading in stock market is not that much difficult. Every Intraday trader enters in to stock market with willingness of making good profit. For so many times you have heard that intraday traders make loss because it is very risky, which is irony of the stock market. You must understand that day trading is not a gambling It is mind game. The probability of making profits is significant.
Tips to Earn 5000 Rs in Intraday Trading
To get success in earning 5000 ₹ in Intraday trading, you must aware of certain things of how to do intraday trading. In this post we will provide few tips to earn Rs. 5000 or more in Intraday Trading.
#1 Select Liquid Stocks
To earn in Intraday trading, the first thing you need to do is select liquid shares. These types of shares have good volume in which you will find out active buyers and sellers at any point in time. Trading in liquid stock can lead to the holding of shares.
#2 Always put a stop loss
Putting a stop loss is a golden key to achieve success in day trading. Stop loss is the level beyond which the trader should not hold the security and exit by booking loss. Using this strategy helps traders to keep their emotions under control. Stop loss is also very important for day traders who indulge in short selling.
#3 Book Profits
Booking the profits is the most important tip to earn in intraday trading. Book the profits in a timely manner. Don’t fall for the greed, instead of that book small profits and do multiple trades. Keep minimum risk to reward ratio (1:1 is ideal ratio for intraday trading).
#4 Know the Entry and Exit Point
Intraday trades may go wrong if the trade is not placed at the right place. With different trading strategy, trader should determine the entry and exit points to enter and exit the trades. These points can be identified by day high and low. To win in day trading, you should strictly follow the rules and assure that profit or booking loss is done at the target price or exit point.
#5 Go with Working Strategy
There are so many best intraday trading strategies. To get profits in the day trading, you must use workable strategy that helps you to achieve at least 1:1 risk to reward ratio. Strategy with more than 60% accuracy can helps you to get double your investment within one year, only if you work with discipline.
#6 Don’t go against the Trend
Going against the market trend, is one of the biggest mistakes that intraday traders made. i.e. if the market is in bullish trend, it is better to take position in the stock, with the hope of upward movement.