How To Get Started Intraday Trading, Step-By-Step?

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intraday trading in stock market online

Are you planning to make a livelihood from the stock market? If your answer is affirmative, the most familiar approach is intraday trading or day trading. As against investing your money and waiting for months and years to book profits, in online trading, you can make gains within an hour. This can particularly happen when you engage in intraday trading. At times, you can get to see profits within minutes in intraday trading. 

No one can deny the fact that internet technology has improved a lot these days. Right from speed to bandwidth, everything has improved. Nowadays, with mobile data available, you can learn and even start to day-trade even from your smartphone. Before you start learning how to get started in online trading, here is a basic idea of the stock market.

What is Stock Market or Share Market in India?

The stock market is a combination of exchanges and markets. It is a place, where regular activities of selling, buying and issuance of public-held companies happen.  When you get into this market, you will have to buy, sell and hold stocks either for a short or a long period. When it comes to stock markets, two types of online trading takes place. The first type is active trading. This is a technical approach to capitalize on short-term price changes. The second is passive trading. Its focus is no long-term investment as against short-term trading. There is also a concept called position trading, which is  a type of passive trading.

As you are interested to participate in active trading and making profits quickly and daily, here is how to get started with trading in the stock market. Before you start intraday trading, it is better to understand what this concept is all about.

What is Intraday Trading in Share Market?

As you can get from the name, intraday trading is a kind of trading in which you buy and sell stocks on the same day.  When you choose to do intraday trading, your goal will not be to hold or carry a position over the next few weeks or days. The main goal is to make quick profits and exit your position as quickly as possible. Here, the holding of stocks will happen for a few minutes to a few hours alone.

Some Rules To Remember During Intraday Trading:

As a beginner to intraday trading, you will have to remember some rules. In turn, you can restrict losses and maximize your profits:

  • In day trading, it would always be good to choose liquid stocks. The reason is that these are stocks that you can easily enter and exit.
  • Before you begin trading on a given day, it is better to prefix entry and exit points
  • Make sure to have a stop loss. The reason is that if you do not do it, there are chances that you may incur a great loss.
  • You should have the mentality of a trader and not an investor when you engage in intraday trading.
  • The market might provide you with multiple trading opportunities in a day. So, it is better to ensure that you are ready to engage in multiple trades with the same indices or companies.
  • Always remember the rule that trend is your friend. It means that you should move your trades in line with the market to make profits.

How to Start Intraday Trading Online in 6 Simple Steps?

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Six steps to start online intraday trading in India

Now, you are ready with the basic knowledge of intraday trading.  Here are the steps you will have to follow to instigate your stock market journey on day trading:

  • Step 1: Have A Trading Account: The first step in this process is to have a trading account with one of the brokers. Examples of some of the popular brokers in India are UpStox (Open Online Demat Account on Upstox), Angel Broking and Zerodha. If you have an account for stock trading with one of these brokers or any other broking service, you can do intraday trading using the same account.
  • Step 2: Have A Sufficient Margin in your Trading Account: Once you are ready with a trading account, you have to ensure that you have enough balance in your trading account. Margin is nothing but the least amount of money you need for trading. The amount of margin required differs from a regular trade to an MIS. MIS is nothing but Margin Intraday Square Off.

    You might wonder how this account is different from a regular online trading account. When you have a regular account, you can carry the position over to the next day. But, when you have an MIS account, the position will get squared-off automatically before the trading day ends.

  • Step 3: Create a Watch List of Stocks to Trade: This is an important step. The reason is that you cannot be a watchdog on all shares listed in the Bombay Stock Exchange and National Stock Exchange. The idea is to have a watch list of a few stocks. When you do this, you can get a chance to moderate and buy the stocks and sell them off within the day.
  • Step 4: Select the Stock you Wish to Trade: Now, you have a watch list from the previous step. From this list, you will have to choose the stock or share that you wish to trade on a given day. Here, you can buy and sell a few stocks.
  • Step 5: Check the Order Book: Once you have placed your order to buy a particular stock based on the previous step, this is the time to check whether the order has been placed.
  • Step 6: Continuous Monitoring of Position: The next step is to continuously monitor the position of stocks you have bought. Look for the right time to sell them. When you see that you have started to experience loss, you should use the stop loss facility to prevent further loss of money.
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Conclusion:

You might have some initial hiccups when you start intraday trading yourself. It might take some days and even weeks to learn the tricks. Thanks to intraday trading courses offered online these days. You can get help from these courses to learn things quickly.

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