A person must have the right knowledge, master plan, and proper planning to prevent losses and maximize the gains from money invested.
Intraday trading is when investors purchase shares when the market opens and sell them at the market close. They focus on technical factors leading to the fluctuation in stock prices and make profits from these variations
• The capital used for trading pur- poses. • The risk one can take • Experience and expertise in trading.
1. USE OF STOP-LOSS Setting a stop-loss with your broker will ensure that you suffer mini- mum losses during intraday trading. Your stocks will be sold if their value falls below the stop-loss amount.
2. FOLLOW THE TREND: Monitor the movement in the broader market and form your trading strategy accordingly. Going with the market trend will keep your capital safe; hence, you will suffer minimum losses.
3.SELECTION OF STOCKS Choose the stocks that move in parallel with the broader market, making it easier to predict their price variations.
4.PREFER LIQUID STOCKS Liquidity is a prerequisite for intra- day trading as it involves buying and selling on a single day. For the investor, liquid stocks make it easier to trade without the volume restraints.