Most people thought that they become rich overnight but one must need to work hard to earn money. Many intraday traders lose all their money in months. So before investing do your homework about where you are investing?
What is Intraday Trading?
Intraday trading involves selling and buying of stocks within the same trading day. In this trading, stocks are purchased just to earn profits, not to invest. An online trading account is needed in intraday trading. Here orders are specific to the intraday trading so you need to specify it because the orders are squared off before the end of the day.
Some Points to Keep in Mind to Avoid Failures
Why are there such a Huge Percentage of Failures?
It is because people don’t understand the strategy of share market. Due to the hurry of reaping enormous profits in less time, they commit repeated mistakes. Only the investors, who spend enough time in understanding the market, succeed in the long term.
Traders make Repeated Mistakes
In intraday trading, mistakes are common, but the beginner traders make blunders. They believe in the tips given by investment consultants. These tips coming from the market speculations only, and there is no theory. Therefore, the stock prices during the trading session do not show price variation. There is no option than booking loss since at the end of the trading session the stock must square up.
Hence, when it happens repeatedly traders hesitate to invest and lose confidence. They start investing safely. It loses the whole purpose of intraday trading and reduces the profit margin. According to the experts, only rich investors are choosing it. In the beginning, mistakes are common, but do not repeat them.
People don’t prepare for it
People are not preparing before investing that’s why they are facing failures. Without knowing the company parameters they jump into it. They also don’t have enough knowledge of the market behavior and high and low of a stock. They put the hard-earned money at stake on the advice or tip from some broker. There is no profound knowledge of the subject if the fundamentals are not clear. So it is obvious that the traders do not earn profits.
Must Read: What Factors Affect Indian Stock Market?
People Ignore the Timings
The trader needs to be extremely cautious in the intraday trading about the timings. Before buying any stock, decide at what price you will sell the holding; low and high both. When the stock reaches the desired high price, just book the profit. Square off the position at the stop-loss price, if the price falls gradually.
So, self-control is a must minimize its loss. One who does not follow it got into trouble. Therefore if someone is following discipline then intraday trading will get you great returns. You can also try our free trial for more benefits.
Hence, intraday trading can give you high returns, but first, you have to do your research properly. Many beginner traders lose their money in this, so before investing see all the aspects and know where to invest, and then only you can earn profits.