Intraday trading is significantly different from long term investing. In the last few years the nature of the stock market is that it is volatile in nature. In case if you are planning to make a living from stock market trading then intraday trading is the only solution. To rake in highest intraday margin a detailed technical analysis has to be undertaken. Even you have to formulate certain strategies at your end to achieve success
Figure out stock trend
This ceases to be one of the most difficult jobs in a stock market. An error in judgment accounts for major losses. Even in a highly volatile market the trend is short lived as this makes the task of stock selection confusing. In certain cases the stocks that I selected for short selling rose on the day of trade. Therefore you have to identify a specific trend in a stock to earn money and this could point to upward or downward movement. Once you base your intraday trading on a weak trend it can pave way for losses. There could be days where you could figure out stocks with a strong trend and simply back out from intraday trading. In fact you should not be trading merely for the sake of trading. In fact you should initiate intraday trading once you are able to figure out a particular stock trend. The volume along with delivery quantity has an important role to play in this regard.
Early trade has to be initiated
The trend that has been witnessed is the first 10 to 15 minutes of morning trading was volatile. Generally traders suggest that you should trade after 30 minutes of trading activity. It has been found out that in most stock the trend is established within 30 minutes and after an initial hiccup the price of the stock stabilizes. Once the stock is of a strong trend, you can take the position within a few minutes and profits can be earned in such stocks. If you are really sure about the trend then the position can be taken within 10 minutes. Though this approach calls for a certain level of risk. It is better that you adopt a risk free approach and wait for 30 minutes. For Intraday trading you need to take a position within 30 minutes.
The gains and losses have to be fixed
Fear along with greed have an important role to play in intraday trading. Your 100 % paper profit may go out of the window and you end up suffering losses. For an intraday trader they need to be aware about their entry and exit point. For this reason it is really important to fix up a profit and loss point for every trade. You also have to adopt a strategy on how to control losses in the stock market.
Last but not the least you should not initiate 2 to 3 trades more than a day. This could be literally committing suicide.