In intraday trading, you will be buying and selling the stocks of a single company or companies within the same day. The trading will happen during the time in which the stock market functions.
This form of trading has more risk than investment into the regular stock market. Here you are not buying stock for the purpose of investment, but to gain profits quickly. Profits are attained based on the movement of stock indices. Hence price fluctuations of stocks are used to get profits from trading.
About Intraday Day Trading and How to Make Maximum Profits from It?
Before getting into intraday trading, it is best to decide beforehand how much of money you can risk losing. It is possible to gain a huge amount of money in a single day and even loose much. You should put only as much as you are ready to take the losses.
It is best to put your money more into liquid stocks than otherwise. These types of stocks can be bought and sold without such actions affecting the pricing of the stock. Moving with the trend is very important as this will help realize profits better. If the market is going bull, you should look into sticks that have the potential to rise in value. Likewise if it is running bear, check up on stocks that are likely to come down in their pricing.
It is also best to choose a stock that has a high correlation with major indices and sectors. This is important because when the indices move upward, the price of the stock will rise. Such stocks are safe to invest and give good returns on sale. So, if you invested into the stock at a low price at the beginning of the day, then the upward movement will bring profits when it is sold.
The Opening Range Breakout is a key factor in deciding which stock to invest. Some traders opt to trade whenever there is a significant breakout from the opening range, but others decide to place their luck on the opening range breakout. The time window for trading can be between thirty minutes to three hours.
Check out stocks that have a low risk-reward ratio. This means the risk of your rewards getting affected by investing into that stock is less, so you stand to gain more profits. Make use of intraday trading charts to find out which stock you can best out your money into.
It is vital to do as much research about any stock before putting money into it. Following what others practice or what is most spoken about might not help. It is important to analyze the performance of a particular type of stock before putting money into it. It is how you select the stock based on which you get returns. So, when you select stock that is going to give good returns, the profits will be higher. It is to be noted that riding with the market trend will help to make a profit better in this form of stock trading.