It is a fact that equities are ample and it is very hard to select the desired one. However, the traders can choose the stock accordingly and this can be done day wise as well. Intra-day trading is all about the selection of right thing to trade. Let it be Intra- day trading or Invest in ETF, there are some tricks to earn profit from them. First select the stock and Invest in ETF and then follow the tricks to make this simple.
Tips for selecting the inventory for Intraday Trading:
- Liquidity- Whether it is intraday trading in india or in any other place the rules stay the same. So, with liquidity the best part is that liquid stock provides effective volume. According to liquid intraday trading strategies big quantities can be purchased and sold and the price remains unaffected. The intraday trading time is limited and therefore a huge volume helps in getting inside and out of the trade easily. Depth is also important in this case because this helps in finding the actual liquidity of the stock at different price ranges.
- High and medium predictions- for traders who think how to do intraday trading, this rule is a myth breaker because day traders always need price fluctuation details for earning profit. According to these intraday trading rules it is suggested that the traders select the market that moves more in terms of dollar or in terms of percentage. The results of both the terms will remain different. Which stock is best for intraday? Now, in the case of second rule it is suggested that the stocks that move three percent or more have more chances of movement. However, it is also better for the stocks that move above 1.50$/ day.
- Following the group- With intraday trading tips it is easy to learn what is intraday trading. According to the third tip there are traders who search for equities that correlate their index group and sector. So, it means when any of the factor rises above then the stock price also rises. The traders must also look for the strong and weak stocks for trading. However, if a trader prefers a single type then only the preferred stock must be focused rather than the other stock which is related with something else.
- Follow the current trend- When intraday trading today is considered then only money making is not the point because entry and exit is also important. Is it safe to do intraday trading, the answer is yes but the current trends are to be noticed every day. When the trend is up then take long positions and when it is down then short positions are better. So stay careful during dominant trends and prefer the new one.
Can we make money in intraday trading, yes but following some tips is always beneficial.