Tips For Day Trading: Is there any place where big money can be earned by investing money for 1 day. If you also have this question in your mind then the answer is yes. The stock market is such a place where you can make money in just a few hours of trading. If you are successful in choosing the right and accurate shares, then a big amount can come in your hands and pockets. This is possible in intraday trading, in which the market gives investors a chance to earn bumper profits even in 1 day.
Intraday trading is the buying and selling of shares in the market on the same trading day. By investing money in it in the morning, good income can be earned till noon. Here the share is bought but its purpose is not to invest, but to earn profit from the increase in it in a day. Keep in mind that it is not necessary that you only benefit from it.
How to do intraday trading
If you want to do day-trading in the stock market, then first you have to open a demat account and a trading account. In this account, you can either trade shares by placing orders over the phone to the broker or you can also trade on your own online.
- How to choose the right stock
- Trade only in liquid stocks, 2 or 3 such stocks can be chosen.
- Stay away from volatile stocks.
- Buy stocks with good correlation.
- Before choosing the stock, definitely see the trend of the market, do not go against the trend of the market.
- After research, invest in the stocks you are confident about.
- Before buying shares, decide in which price to buy and how much is its target. Make sure to put a stop loss.
- Make profit booking as soon as the target is met.
- how much money is needed
You can invest any amount in any stock in intraday. There is a rule in the stock market that on the day the share is bought, full money is not to be paid on that day. Under the rule, the full payment has to be made after 2 trading days from the day the share is bought. Still, you have to invest 30 percent of the share price in the beginning.
how to get benefit
An example of this can be taken from the trading in the stock market on Tuesday, 29 October. Tuesday proved to be a better day for those investing in Tata Motors shares. After adding positive sentiment, the company’s stock has gained up to 16 percent. Earlier, on October 3, due to the formation of positive sentiment, Yes Bank gained about 29 percent.
Experts believe that most of the trading in the stock market is of day trading, but still business should be done with caution. Before choosing the stock, the market trend must be seen. Do not go against the trend of the market. Before buying shares, decide in which price to buy and how much is its target. Make sure to put a stop loss.
(Disclaimer: We are giving information about intraday trading here and not investment advice. Stock market has its own risks, so take expert advice before investing.)