It seemingly looks to be the simplest and the most rewarding. But in intraday trading one has to be very fast and quick and have to be on your toes always, so there are certain rules which one has to keep in mind.
- If index is in positive from yesterday and the share you are holding is in minus then it should be cut and if intraday trend of index is in buy then one should buy a stock in which is in plus.
- If index is in minus then one should look to short stocks which are minus and not stocks which are in plus.
- It is not necessary that a stock which is weak today during intraday trading might be weak tomorrow also, simultaneously if a stock is strong today might not be strong tomorrow
- If US Markets have gone up overnight, the markets here in all probability will open strong, so one should be quite careful when buying stocks as the general psychology of public is to buy when good news is there.
- Being a contrarians is very important while trading intraday.
- Stop loss is a must while trading intraday.
- Always trade in very liquid stocks i.e. which have very high volume because as entry and exit can be very fast in such stocks.
This post has been edited by esterhall: Apr 29 2014, 08:36 AM