Introduction

Intraday trading is one of the most popular methods of trading as it is the most convenient for traders. Intraday trading consists of buying and selling stocks that are listed during open hours. When the market closes, so do the orders placed throughout the day if their target or stop loss is not met. Though intraday trading might sound easy, it has its risks and is only recommended for skilled traders. 

However, these skills can be cultivated if you are looking to dive a little deeper into the “how to do intraday trading?” question. Here are some crucial intraday trading tips that might help you do just that.

Gauge Your Risk-Aptitude 

• Before stepping foot into intraday trading, you need to first figure out how much risk you are willing to take during trading.

• You also need to be able to recognize the various moods of the market and how it moves according to those moods.

• There are various aspects you need to keep in mind before jumping into trading. This includes the capital available to you, knowing how much you might lose during a trade and whether you are ok with taking such a risk.

• Make sure you have all this information in front of you to remember what you are risking when carrying out a trade.

Research Trading Styles

• If you are new to the trading world, it is important that you look into the different trading styles and practise them before implementing.

• When done right, practising these techniques can truly help teach you important aspects of different trading styles.

• Using an unproven technique to trade in the market can lead to higher losses.

Maintain a Routine

• Carrying out successful trades isnt just about the hours you spend when the market is open, it is also about how you spend your time before and after.

• Maintainin a routine prior to opening and post the closing of the market, that aids your trading mechanism, can be equally important to carry out successful trades. 

• This could also include reading the news or keeping up with what is going on around the globe so that you know how it is affecting the market.

Start with a Small Amount and Smaller Trades

• From the get go, it is important to understand that not all of your trades will result in your making profits.

• The markets are more or less volatile most of the time and this is why it is important to be realistic about your trading outcomes.

• This is why it is important to start by using smaller amounts and on smaller trades. 

• You can gradually increase this amount and carry out larger trades as you gain more experience.

The One Percent Rule

• The one per cent rule involves the use of only 1% of your total investment money to  invest in. 

• This helps limit losses to a great extent if and when they occur. 

Keep Reviewing Your Trading Style

• The volatility of the market ensures that no trading style ever stays foolproof.

• This is why it is important that traders keep monitoring their trading style and adapt it according to the market movements. 

• However, do not alter your trading plan from the get go, sit and study how it is proceeding and give it time to produce satisfactory outcomes before deciding.

Use Stop Loss

• Entering a trade without a stop loss in  place might just be the biggest mistake a trader makes.

• A stop loss helps traders carry out effective intraday trades while also letting them avoid potential losses. 

• With a stop loss in place, traders stay protected from any price movements that might go against their position.

• This is one step that you definitely should not be skipping.

Conclusion

Intraday trading is not rocket science, but it also is not something you can indulge in on a whim. There need to be certain processes in place that help you carry out intraday trading in a successful manner and let you steer clear of potential losses. By keeping the above pointers in mind, you can carry out trades successfully and earn higher returns while reducing your losses to a great extent.