Intraday trading can be extremely beneficial for smart investors. But according to the reports, approximately 70% of individuals who invest in intraday trading lose money. So, where exactly do they fail? Before we discuss the tips of making money in intraday trading, let’s have a quick look at the meaning of this exclusive form of trading in brief.
What is Intraday Trading?
When you purchase a commodity in the morning and sell the same at night, it refers to intraday trading. In short, you must close your trading positions in a day. If that doesn’t fit your trading routine, you can sell the shares in the morning and purchase more shares before the end of the day.
Intraday trading is especially famous among the beginners who have recently joined the investment industry and cannot wait to see the results. Apart from the beginners, lots of investors prefer this trading approach as it comes with amazing benefits. Let’s have a look at some common ways of making more money from intraday trading.
· Set Entry and Target Prices
Do you know human psychology is so flexible that it changes every moment? If you want maximum results and a high income from intraday training, you must set the entry and target prices before you purchase the shares. It is the stock market; you cannot purchase shares and sell it instantly when you notice there is a slight increase in the rates. Just because you have to close the trading account the same day doesn't mean you can settle on low deals. To reap full benefits, you must determine the entry and target prices and most importantly stick to it.
· Use Stop Loss
Stop-loss activates a system where your shares are sold automatically when the prices fall beyond a certain limit. No one wants to suffer from a loss in the stock market. We cannot control the price of the shares, but we can definitely trigger stop loss to limit the amount of money we lose. Get rid of emotions and activate stop loss to avoid heavy losses.
· Avail Your Profits When You Have Reached the Target Price
You set a certain target price but your mind changes because you see there is a probability of earning more. The two important factors for any investor are to eliminate their losses and book the profit ahead of time. As soon as you’ve reached the target price, book your profit. If you strongly believe there is a chance the stock rates will go up, you can readjust the stop loss. But if you don’t want to be greedy, it is best to avail the profits the minute you reach the target price.
These were some tips for making more money for intraday traders. Intraday trading is never that easy how it seems. But if you want to reap maximum benefits, be ready to add these tips to your Intraday trading tips list. All the best!