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Aug 13, 2018

(Learn!) What Is Intraday Trading With Example | Intraday Trading Tips



You can learn what is intraday trading with example an interesting video to help you know the risk and reward for intraday trades.
What Is Intraday Trading With Example
Learn What Is Intraday Trading With Example

Intraday trading is a method in which we are going to enter our trade between 9:15 am to 3:30 pm so you have entered the trades which on which you would anticipate that specific stock will be bullish or bearish so once you enter the trade you are required to exit it before the end of market timings

Learn Intraday trading video

(video source & credits: Motilal Oswal YouTube Channel)


Let us start with some questions and answers on this topic of intraday trading.

What Is Intraday Trading With Example

I have answered 10 important questions that every trader must know before he enters an intraday trade, so just carefully read all these questions and answers below:

1. Is it safe to do intraday trading?
Intraday trading in India means the financial transactions carried out in the stock market by a trader within a single day. Of course, day trading and day trading stocks are very difficult, especially for beginners. Not only it is difficult, but also it is not safe for the novice traders.



2. What is intraday trading in the stock market?
The name “intra-day trader” refers to a stock trader who opens and closes a position in a security in the same trading day. This can be buying and selling to capitalize on a potential rise in a security's value or shorting and covering the short to capitalize on a potential drop in value.


3. What are intraday trading and delivery?
When you want to buy or sell the number of shares or stocks in the same day, it is called intraday trading. And when you buy stock and hold them for overnight, then you have done delivery trading.

4. What is an intraday chart?
Many traders work with intraday price charts based on time intervals that include 5-minute, 15-minute or 60-minute. This categorization means that one bar, whether candlestick or OHLC (open-high-low-close), will print at the end of each specified time interval.

5. Can intraday trading be profitable?
Many of the traders start day trading with an assumption that they can generate good money by making profits with just a single trade. ... The intraday stocks always move based on the market sentiment and hence if you have to make profits in intraday; the trade has to be based on the movement of the stock market.

6. What is the margin in intraday trading?
Margin Intraday Square-off is an exclusive feature for intra-day trading, that facilitates you to make the most out of market movements. 
For example, You want to buy 1000 shares of company A, which are trading at Rs.50 per share. The total value of the transaction is Rs.50,000 if you use full cash position.

7. Which is the best indicator for intraday trading?
Moving Average Convergence Divergence (MACD): MACD is used to identify the different aspects of the overall trend
Bollinger Bands (B.Bands): The price may go up in some time if the stock trading price is below the lower line. 
Relative Strength Index (RSI) : 
Average Directional Index (ADX) :

8. What is IOC in order validity?
DAY - A Day order, as the name suggests, is an order which is valid for the day on which it is entered.
IOC - An Immediate or Cancel (IOC) order allows a Trading Member to buy or sell a security as soon as the order is released into the market, failing which the order will be removed from the market.

9. What are STT and CTT tax?
Different STT rates are applicable for Equity (cash) and Futures and Options (F&O) transactions. STT is levied on trades on the National Stock Exchange (NSE), Bombay Stock Exchange (BSE), and other recognized stock exchanges. For commodities, CTT (Commodities Transaction Tax) is levied.

10. What is ADX in trading?
Trading in the direction of a strong trend reduces risk and increases profit potential. The average directional index (ADX) is used to determine when the price is trending strongly. In many cases, it is the ultimate trend indicator. ... In this article, we'll examine the value of ADX as a trend strength indicator.

Intraday trading is just not taking a trade based on technical analysis or fundamental analysis of the stock.

But

It is more with your emotions like greed and fear so when you practice controlling your emotion then you will tend to see profit in your day trades.

Experiment all your strategies with the paper trade for few weeks, because you should know when this strategy works for you.

So that you won't make any loss when you are experimenting with any technique and understand the fluctuation of stock prices with global economic results.

Hope now you know what is intraday trading! Do you still have more questions? comment on this article below.

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