Is Intraday Trading Good for Beginners

Every trader wants to make instant money in the stock market and therefore opts for day trade. But getting into it directly is a right, moreover is intraday trading good for beginners.

In this article, we will cover the challenges and intraday trading risks that make it difficult for a newbie to generate profit in the stock market. To get into the context, gain an understanding of intraday trading first.

Intraday Trading Meaning 

Intraday trading is fast-paced, profit-oriented, and ordinarily involves large orders. What makes this trading style differ from others is that it involves buy and sell orders being carried out within the same day.

Beginners seeking to dabble in intraday trading need to understand how to place these orders and the techniques needed to identify and follow trends. In this regard, Angel One stands out as it has two educational resources i.e., Smart Money and Knowledge Centre that help explain all forms of investing and trading including intraday trading

Continue reading to know if you should get into intraday trading or not.

Intraday Trading for Beginners

Those wishing to partake in any form of trading must be aware of the high level of risks involved. Since intraday trading revolves around high volume trades that must close within a single trading day, the risks are even greater. Therefore, beginners must consider the following factors prior to carrying out any intraday trades.

• The Markets are Volatile 

Beginners must be aware of the volatility that plagues markets from time to time and must not trade during this time.

Intraday trading is best suited to market situations that are predictable and wherein the momentum of the market is headed in a clear direction. Else, beginners could end up spending more time and money on activating stop losses. 

• Learn to Protect your Capital 

Capital protection lies at the very heart of intraday trading. Prior to actually carrying out any intraday trades, beginners must identify the extent to which they are willing to sustain a loss overall as well as on each trade.

Only once capital can be protected from depleting beyond an identified point, is it possible to generate profits from intraday trading.

• Know When to Stay Away

Beginners must learn that staying away from markets is an important aspect of intraday trading.

There exist three key decisions that all intraday traders must make – when to sell, when to buy and when to not participate. Surprisingly, a large chunk of money that intraday traders stand to make, arises when they don’t interfere while the rest of the market is in chaos. 

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Intraday Trading Tips for Beginners

 Greenhands new to intraday trading should keep in mind the following.

• Get into the habit of intraday trading by practicing with paper trades. These simulated trades permit you to carry out buy and sell orders without risking any real money
• Begin trading with a small amount of money and only increase it once you acquire experience
• Take advantage of historical analysis to discover opportunities and create trading strategies that revolve around them
• Create a clear profit and stop loss level and don’t try to alter it mid-trade

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From Where to Learn Intraday Trading?

Beginners should look at the resources mentioned below to enhance their knowledge of intraday trading. 

Tapping into the Knowledge Centre on Angel One’s Website

 This website provides beginners with a range of educational content such as the Knowledge Centre that helps traders learn about intraday trading and its strategies. 

Beginners get to learn about the taxes applicable on potential gains and the mistakes they must avoid while participating in intraday trading. The Knowledge Centre also teaches you how this trading style differs from others – take positional trading for instance. 

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Intraday Trading Books

Apart from websites, another best source to learn intraday trading is books. Books help you to clear the theoretical concepts of day trading which you can use practically to maximize your profit.

These books cover all the concepts of basics and advanced concepts of day trade, along with the strategies that help a beginner in understanding the complexities of the market in simple terms.

It guides you with the chart analysis and how to read the complex stock market moves. Although there are innumerable books, but some of the best picks are enlisted in the table below:

 

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 Conclusion

 Visit the Angel One website and explore its Knowledge Centre to understand the terminology and techniques relevant to intraday trading. Only once you understand all that orders entail, can calculate a stop loss with ease, implement strategies, and can master the markets. 

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Disclaimer

1. This blog is exclusively for educational purpose
2. Investments in the securities market are subject to market risk, read all the related documents carefully before investing. Brokerage will not exceed the SEBI prescribed limit. https://bit.ly/2VBt5c5

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