INTRADAY
During a single trading day.Another way of saying “within the day”. Intraday price movements are particularly important to short-term traders looking to make many trades over the course of a single trading session. The term intraday is occasionally used to describe securities that trade on the markets during regular business hours, such as stocks and ETFs, as opposed to mutual funds, which must be bought from a dealer.
This term is often used to refer to the new highs and lows of a security. For example, you purchase 50 shares of tata tele in the morning when market opens and holds it for 1,2, 3 hrs and sell it before market closes.
INTRADAY TRADING
Intraday trading refers to opening and closing a position in a security in the same trading day. This can be buying and selling to capitalize on a potential rise in a security’s value or shorting and covering the short to capitalize on a potential drop in value. Intraday traders capitalize on small moves in the value of a security by using “leverage” or “margin”, which basically means borrowing money.
Do’s and Dont’s of intraday trading
- If index is in positive from yesterday and the share you are holding is in minus then it should be cut and if intraday trend of index is in buy then one should buy a stock in which is in plus.
- If index is in minus then one should look to short stocks which are minus and not stocks which are in plus.
- It is not necessary that a stock which is weak today during intraday trading might be weak tomorrow also, simultaneously if a stock is strong today might not be strong tomorrow
- If US Markets have gone up overnight, the markets here in all probability will open strong, so one should be quite careful when buying stocks as the general psychology of public is to buy when good news is there.
- Being a contrarians is very important while trading intraday.
- Stop loss is a must while trading intraday.
- Always trade in very liquid stocks i.e. which have very high volume because as entry and exit can be very fast in such stocks.
- Do paper trading before you actually start trading so that when you start making paper profits, then shift to actual trading.
- Fear and Greed are at maximum levels while trading intraday so always have less position when you are new to intraday trading as otherwise you will be mostly under tension.