What is intraday trading: all you need to know
What is intraday trading? It is possible to start intraday trading or day trading with a minimal amount and create a sustainable income. If you are attracted to this aspect of day trading and want to start doing it yourself, you should understand a few things before taking the first trade. Here is everything you need to know about intraday trading.
What is intraday trading?
Intraday trading is similar to buying and selling shares and other financial instruments with only a compulsion to square the position on the same day. If you buy a stock and sell it before the market closes on the same day, that trade is called an intraday trade.
Why consider intraday trading?
You can get leverage as high as twenty times the cash you have in your trading account for intraday trading.
The intermediation rate is minimal compared to delivery.
You don’t have to wait for the long term to realize the profit.
For whom does intraday trading work?
Only those with a higher risk appetite, who can spend time following the market closely and can understand the complexities of technical analysis should engage in intraday trading.
Getting started
You need to open a Demat and trading account to get started, preferably with a discount broker that offers an easy-to-use online trading platform.
Learn the tools
Before taking a risk with your hard-earned money, you should spend some time understanding the trading tools. You should at least be able to read the basic candlestick charts and understand the functioning of the trading platform.
Selecting shares for trading
Since you need to square the position before the market closes, you need to choose the stock with sufficient liquidity. To make a profitable trade, you need to choose those stocks that have sufficient volatility.
Identifying profitable business
Some of the indicators that you should study carefully to understand the direction of the stock price are; current market price, chart pattern, volatility, trading volume and moving average.
Limiting losses
Being able to limit losses is an important skill to have for an intraday trader. Every trade should have a fixed stop-loss trigger to limit the loss of a prediction gone wrong.
With this, you can start trading intraday. To improve your profits, keep learning about price action tools and tricks and basic analysis of the stocks.
About the Viking
With Viking’s signals, you have a good chance of finding the winners and selling in time. There are many securities. With Viking’s autopilots, price data, tables and stock prices, you can sort out the most interesting ETFs, shares, options, warrants, funds, etc.
Click here to see what Vikingen offers: Detailed comparison – Stock market program for those who want to become even richer (vikingen.se)
