Top 5 Intraday Trading Tips For Beginners

People have made fortunes by stock market trading ever since the stock market has begun. There are different approaches to making money in the stock market, which include intraday trading, swing, and positional trading. Intraday trading is the most popular type of trading strategy, which helps us fill our back accounts instantly.

In the stock market, if there is a reward, there will always be risks. Intraday trading might be the best approach to making money in the market, but it is very hard for novice traders to master it. This trading method helps you earn quickly, and it also has a risk of blowing up your account in a few minutes.

So, it is crucial to learn and master the intraday trading strategy before you enter the market. There are hundreds of trading strategies out there, but only a handful of them are useful and produces consistent results. We will see the basics and some crucial tips for intraday trading.

Let us see the top intraday trading tips for beginners India which works on both stocks and indices like Nifty and Banknifty.

Best Stock Market Trading Tips

1. Pick Intraday Best Stock

Most new traders want to get rich quickly, so they become lazy or careless. Trading is one of the most competitive jobs in the world, and a trader should do his homework before the market opens. It is crucial to pick the best stock for intraday trading because only a few stocks move significantly, and others enter sideways or range-bound markets.

Stocks should either be in an uptrend or in a downtrend for us to be profitable. To figure out the current trend of a stock, visit our blog here. We have included one of the best tips to select stocks for intraday trading in our blog.

2. Liquid Stocks

Choosing a stock with liquidity is crucial. Even I have made the mistake of trading in stocks with poor liquidity. Stocks with large market cap tend to be more liquid than low market cap stocks. Large cap stocks have high trading volumes making them the best intraday stock for us. You can find liquid stocks by using Tradingview, which is the best intraday trading app.

3. Identify Entry And Exit Prices

You can visit our blog here, which helps you to find entry and exit points of stock in the long term. It will definitely help you understand finding the entry and exit prices for intraday trading, too, since our intraday tips are based on that.

Analyzing the price data of your intraday stock might help you. Price action is the best technical analysis method to identify your entry and exit points. You can visit this Quora post where our senior technical analyst Patrick Bamford has made a case study of Nifty.

4. Using Stop Loss

The best intraday trading tip for beginner is to use a stop loss. Entering a trade without a stop loss is equivalent to jumping from an airplane without a parachute. The stop loss is fixed at a certain price to limit the trader’s loss on that particular trade.

While trading your best intraday stock make sure to place a stop loss to prevent your account from blowing up due to an extremely volatile market. Another important trading tips for beginners is to respect the stop loss. Exit the trade when the price hits your stop loss, and never hold your trade in hope. It is better to have a systematic stop loss as soon as you have entered the trade to prevent your emotions from fooling you.

5. Risk Management

Novice traders often underestimate the power of risk management. It helps you to be profitable even if your success ratio is below 50%. There are several risk management intraday trading tips used by professional traders to be profitable in the long run. The rule of thumb is to never risk more than 2-5% of your entire capital.

The etrades system has made new traders make multiple trades without proper risk management. This puts their whole capital in danger.

Following these five intraday trading tips will definitely help you become profitable or at least help you minimize your losses. This is how to select stocks for intraday one day before.