In Intraday trading, shares are purchased, and positions are squared off within the same trading day. Share prices fluctuate throughout the day, and traders aim to profit from short-term price movements before the market closes.
Compared to long-term investing, intraday trading is definitely a riskier option, especially for beginners. But with good knowledge and risk management techniques, one can make profits as well.
In this blog, we will share some intraday trading tips from beginners to intermediate and advanced-level traders.
Intraday Trading Tips For Beginners
You might have heard about intraday trading from a friend, watched a video online, or encountered another reason that sparked your interest in starting trading. So, if you are a beginner trader, the below intraday trading tips will be helpful!
Understand the Basics
Understanding the basics of intraday trading is the first and most important step to start with. Some key aspects to focus on include:
- Know the meaning of terms like ask price, Scalping, bid price, bid-ask spread, day order, Alpha, Beta, and more.
- Watch different YouTube videos on intraday trading for beginners.
- Learn technical analysis.
Begin Trading With Virtual Money
Popularly known as paper trading, it is one of the best ways for a beginner to learn different trading techniques. There’s no risk of losing money, so one can experiment with several trading practices and learn to do intraday trading.
Choose a Broker
Once you are confident enough to do live trading, choose the broker with a simple user interface, lower brokerage fees, and good customer support.
Don’t Rely On Third-party Stock Recommendations
Avoid relying on third-party stock recommendations, such as tips to “buy XYZ stock at ₹211 with a target of ₹220.”
This doesn’t require any hard work, but this way, one can never learn to trade, especially beginners. Also, there’s no guarantee of profits as stock market movements are unpredictable. Instead, do your own research and thorough technical analysis to pick the right stocks.
Read more: Intraday Trading Guide for Beginners
Read the next section for some tips on choosing stocks for intraday trading.