Buy and sell shares in a single day is called intra-day trading. The investor thinks he will get profits immediately, but it is a big risk and you can probably lose your money. It is a captivating option for those who desire to earn instant in the stock market. I used the term so captivating that means many novice traders do not understand the risk of Intraday trading. They think that is the best deal because on the same day you can buy or sell shares. Ten-eleven o’clock in the morning you buy a stock and sell at three o’clock. In just three hours you can get profit from three to ten percent. But they forget that behind the bumper profit is how much risk is there. The expected benefits of the trade can make you in double loss. Therefore day trading should be done very carefully to avoid the pitfalls.
Here you would read and learn important thing that can avoid the pitfalls of trading. –
Do not Misuse of profit Margins:-
Mostly broker provides a large margin to traders for Intraday trading. Suppose, one thousand rupees in your trading account, but shares worth eight thousand you can buy when trading. It is possible with the help of a broker. Seven thousand rupees your broker lends you without interest. It is great to hear. But the truth is something else. The broker gives you more margin on the condition that whether you gain or loss, but in any case before the close of the day the market will settle your deal. Means the broker is going to lend you money for just a few hours. The advantage is that you can buy shares worth eight thousand instead of one thousand. The broker will gain brokerage because of more money on the purchase. Whatever you get (Benefit or loss) in your trade, the broker had gotten his profit, that’s why he gave you the margin.
But don’t forget that if you greedily trading worth eight thousand instead of one thousand, your risks will increase eight-time.
In Intraday trading you have less time to choose a stock and to decide when to buy or sell a stock for getting maximum profit. The most important and prefer thing in Intraday trade is to reduce bad trades or losses. For this you maintain a “stop loss” which prevents you from big losses.
By following some useful stock intraday market tips , strategies, you can make a profitable trading, Such as-
•Check Stock’s Volumes
•Keep Patience For Right Price
•Maintain Strict Stop Loss
•Don’t over trade
•Wait, Watch then decide to Buy or Sell
Remember, in all options of trading, intraday is the most risky trading. The considerable experience, skill and discipline are required. We recommend that new traders with little experience should avoid intraday margin and take intraday trading tips and recommendations from an authorized investment advisory firm.