INTRADAY OR DAY TRADING?Uncategorized
Intraday or Day Trading?? A question which a rookie trader very eager to know. In this post we are trying to explain the same. Intraday is simply ENTRY AND EXIT in a trade in a same day i.e. closing all the positions taken at the any point of time in market hours well before close of market hours.
At the close of market, all the positions must squared off. That is the simple concept of “Intraday or Day Trading”.
For e.g. Let us we buy 100 scrip of Tata Motors @ Rs. 175.00 per scrip in the morning at 11.00 a.m. for Intraday. Then we must sell all 100 scrip by the time 03.30 p.m. irrespective of we are in Profit or not…
- Preferable Timings to take trade : 09.45 a.m. to 11.30 a.m. and 1.30 p.m. to 3.00 p.m.
- Intraday requires quick movement of stock in any direction so that entry and target can be done as soon as possible. Hence selection of stock is very important, go for volatile stock only.
- As volatility and control by big traders like institutions in NIFTY 50 stocks are comparatively low or almost impossible. So NIFTY 50 stock generally good for day trade as they are more comfortable with indicators. Don’t go for penny stocks which are highly controlled by big traders.
- Selections of lot and add on lots are must be taken care properly, don’t average in loss at any cost. Go with small lot initially. It could be as low as 50 to 100 depends on your portfolio size and your money management method.
- Booking Profit : Starts booking profit even before your actual target hit, if trade takes more time than your calculation but do it in part of lots. For e.g. if you have 500 stocks, sell 100 at 60 % of target, sell next 100 in 70%, next 100 in 80% and rest in your 100% target achieved.
- Stop Loss: Stop loss is a must tool and your savior in the day trade. Always finalized your target and stop loss even before take entry into trade. But here I am telling you some important things which are the main reason by which your stop loss hits many time.
- We all take trade on the basis of a particular time scale, for e.g. 5 min chart, 10 min chart, 15 min chart or so on. So you just have to do one thing, don’t put Stop Loss in system. But keep it in your mind and wait for the time period on which basis you take the trade. We can say let one more candle to be complete, exit trade only if next candle close above your stop loss and next coming candle starts forming above it. For e.g. Lets consider you take a trade on the basis of 15 min time frame chart and you take entry at 11.15 @ Rs. 100.00 per scrip with Stop Loss Rs. 98.00 and target Rs. 105.00. Lets consider at 09.20 stocks goes below Rs. 98.00 or your Stop Loss. Now you have to wait till 11.30 a.m. and exit trade on the basis of candle starts forming at 11.31 a.m., but keep your eye on buyer seller ration also.
- This method will save your from all the small/long tails formed by the stock, done by large traders to hit the stop loss of the small retail traders like us.
- Make your own rules and always follow them strictly.
Intraday Call: IBULHSGFIN : Sell at 9.32 a.m. @ 757.90
Close trade at 9.45 a.m. @ 752.00. Follow us @ https://nsestocktraders.blogspot.com/2019/06/intraday.html