Tips for Intraday Trading: The stock market is a volatile place during an event that can change the outlook of the country and economy in the future. Currently, the whole of India is voting in Lok Sabha Elections 2019. The real impact of the results will be soon closer to the result dates of the elections i.e. 23rd May. Therefore, while trading in the stock market during such period one must be very cautious and careful. In this article, we will list out a few tips for the intraday traders that would help them in taking the right trade during the election period.
Tips for Intraday Trading
Take a trade in the stocks that have higher volumes. This is because as an intraday trader you would want to close your position on the same day. During the election period, you never know how the market would behave the next day. Therefore, carrying an overnight position can be risky. Stock with higher volumes provides easy exit and entry points.
- Put a Stop Loss
Stop loss ensures that during the volatile phase of the market your losses are restricted. Stop loss protects you from making heavy losses and saves your capital. Therefore, any trade you take must have a stop loss in place.
- Keep Emotions Away
There is no place for emotions in the stock market. The decisions taken out of emotions during the election phase of the market can result in heavy losses. Following a practical approach will help you in making good profits and limiting you intraday losses.
Lok Sabha Election 2019 Live Results : http://www.elections.in/results/
- Follow Technical Charts
The technical charts of the stocks help you in taking a position on the basis of the chart pattern. The technical charts of the stocks predict their future movement. During the election period, any position taken on the basis of technical charts can prove to be very beneficial.
- Do Not Trade Against Market Trend
During the election period, the stock market may show volatile swings. Therefore, trading against the pattern of the market can be very risky. The intraday trades taken during such phase should follow the market pattern.
- Book Timely Profits
It is always recommended to book your intraday trading profits timely. During the elections, the markets tend to be volatile and can change their direction suddenly. Therefore, it would be right to book the profits in a timely manner before your profitable trade turns into a loss.
Election Commission of India: https://eci.gov.in/
Taking an intraday trade without any research can prove to be fatal. It is always advisable to enter into a trade after thorough research. Make a list of stocks that you have researched and accordingly build intraday positions. Use the internet for finding the resistance and support levels of the stocks.
- Do Not Overtrade
The intraday traders must have control over themselves and never overtrade. Overtrading during the election phase of the market is a risky affair. Any wrong move can wipe out your whole capital. It is advisable to trade within the risk-bearing capability in few stocks only.
- Invest Wisely
During the election phase of the market, it is advisable to invest wisely for intraday trading. Invest only that amount you can afford to lose. Investing all your money at once can lead to erosion of your capital because big and unexpected moves are common. Therefore, investing safely and wisely is the way to go.
- Keep Target
Intraday trading is about greed and fear. You must always keep targets in mind before you take a trade. Just like you have a stop loss price in place, always have a profit booking price in place too. Do not let your greed overtake your decision making. If the target is achieved, book profits and exit. Holding position out of greed can lead to losses as well.
The above tips will help you in making handsome returns during the elections phase. Rapid Tips is one of the popular intraday tips providers in the market. You can avail our services of jackpot and sure shot calls by subscribing us. We ensure that our clients make maximum profits with minimum risks. To know more about us, you can contact us via email or call us. We will be glad to serve you.