Which Type Of Trading is Best for Beginners In India ?

IntraDay Trading : What is Intraday Trading?

As the name suggests, intraday trading is a type of trading that allows you to buy and sell stocks (or assets) on the same day. i.e. In the same trading session. Trading here is not intended to hold or maintain a position over the next day or weeks. The main goal of intraday trading is to make a quick profit and exit the position as soon as possible. In addition, asset holding times can vary from minutes to  hours. Additionally, intraday trading is typically for high-beta stocks, i.e.stocks with high daily price volatility. There is no way for an intraday trader to make a profit on the stock if the price does not move at all throughout his day. 

What is a Day Trader ?

There are proven theories on the market. “The more time you spend in the market, the more rewards you get.” Intraday trading is generally done by traders who are very active participants in the market. So they monitor the market every second.  One thing to keep in mind when trading intraday is to avoid  being  too greedy when trading intraday. Having strict profit targets and stop loss levels can go a long way in choosing the right trades for intraday trading. A stop loss is an advance order to sell a stock when the stock price reaches a certain price. Therefore, it helps automate the sales process in different market scenarios. 

Intraday Trading Rules Of Thumb For Beginners

Here are some of the best rules for day trading beginners to follow in order to maximize profits and limit losses. For intraday trading, always choose liquid stocks that are easy to enter and exit. Think about your entry and exit points before entering a trade. Always place a stop loss on your trades as your position can move away and incur a large loss. In intraday trading, it's important to have a trading mindset, not an investor mindset. Markets may offer multiple trading opportunities, so you should be prepared to trade multiple times on the same company or index. Always trade in the direction of the market. Remember: "Trends are your friend."Mean reversion trading is generally not a good strategy for intraday trading. 

What products can be traded during the day ?

You can do intraday trading on almost any stock traded on the exchange. You can also trade indices. In addition, intraday trading is conducted not only for spot trading, but also for derivative trading (futures and options).  The derivatives segment contributes significantly to the intraday trading market. Also, margin requirements for trading intraday futures contracts are relatively smaller than for delivery contracts.