Skip to main content

How do I earn profits in intraday trading?

In order to earn profits in Intraday trading, you have to understand basics of technical because you may earn 1 or 2 times luckily in intraday by guessing or taking risk but if you are not aware about basics of trading, you may loose entire capital too in Intraday.
Important note to those who just entered in stock market thinking this is a safe and easy place for earnings. Let me tell you very clearly that Intraday trading involves risk, risk of loosing capital and it can hurt your sentiments and expectations so don’t consider it as your primary source of income. Just be practical while trading.
Now let’s discuss about question that how do I earn profits in intraday trading?
For that you have to understand basic technical. Support and resistance, daily trend and many more things. I will help you to identify that.
I am sharing with you a strategy which will mostly give you good profit in Intraday. That Strategy is:
BUY ON SUPPORT & SELL ON RESISTANCE
Now this strategy is simple in reading but tough to follow for normal traders. So I will make it simple for you by briefing in detail.
What is Support?
If any stock is coming down in intraday, it takes support somewhere. You have to find that support. First support can be it’s previous close, second is previous low and third is weekly low. These are basic supports which works normally in all kind of market.
In which stock you have to find support?
Well, you have to find support in bullish stocks only. If you are searching for support in weak stock, you may loose. You have to identify strong stock, buy them near support and see the results.
What is resistance?
If any stock is rising in intraday, it faces resistance somewhere. You have to find out that resistance in order to gain in intraday.
In which stock you have to find Resistance?
You have to find resistance in weak stocks only. Those stocks which are weak and giving only intraday bounce are best to sell for intraday. You just have to find their proper level and you will get results.
Live example of Resistance Today:
PSU Banks were facing resistance yesterday and nifty was also facing resistance so if you sell PSU banks like Bank of India, PNB or SBI with yesterday’s high stoploss, you can make good profit. Don’t sell Strong stocks which are relatively stronger in falling market.
I suggested this strategy to all my followers since many years and it is giving good results.
I am mentioning few points to keep in mind while doing intraday trading which will surely help you and improve your intraday trading.
  • Stock selection: Selection of stock plays a major role in intraday and if you don’t improve that, your earning chances will remain poor. So how should be selection of stock? Let me brief you that you have to select only A group stock while trading for intraday which has good volumes. Never select high volatile stocks like PC Jewellers or JublFood. Select less volatile and stable stock for intraday which gives movement with market. Buy Bullish stocks in rising market and Sell bearish or weak stocks in falling market.
  • Risk Management: Risk plays a big role in intraday trading. It’s not necessary that you will get profit everyday or your all trades are right so you have to stop your losses somewhere and for that Stoploss is Must. You should apply a calculative stoploss to overcome your risk. If you are aiming for 10 Rs target, you should put 3 to 4 Rs stoploss as well. If you can’t do that, you can’t minimize your losses.
  • Market trend: First of all you have to identify market or Nifty trend before entering into any intraday trade. You are not supposed to buy any stock because it has fallen much or you are not supposed to sell a stock because it has risen too much. Never grab a falling knife or never do bottom fishing. Identify market trend and go with trend only.
  • Stocks in News: Avoid that kind of stocks which are news driven or any data, news or results going to announced. If you are a safe and calm trader, just wait for perfect opportunity rather than trading in any random trade. Stock which are in news can give big movement and can give you big losses too. So stay cautious in this kind of movement.
  • Overtrading: Never prefer too many trades in intraday. Rather than doing 5–10 trades in a day, just do 1–2 trades which can give you enough money for intraday. You can’t be millionaire in a day so never try to do too many trades in which you can’t concentrate.
  • Emotions: You have to control your emotions to avoid losses in Intraday trading. Emotions makes you hold your loosing trade and once loss will be increased, you won’t be able to exit in big loss. So control your emotions while trading and be practical while trading. Small loss can be covered in next trade but if it becomes bigger, you can’t survive with low capital.
  • Greed: Intraday traders are greedy sometimes. If they are getting 10k profit with 1 lac capital in intraday, they don’t book it and loose that ultimately because they can’t book on time. You have to keep balance between Fear and greed because if you will not book profit on time, you may loose it. You have to set in your mind that I am happy with this much of profit for today.
  • Never Average: This is most common reason I have seen in my career. People average their loosing position which makes it worst to exit because if you double the quantity, risk will be doubled too and you won’t be able to book loss which can vanish your whole capital. Never average loosing trade. Just cut the loss and move forward. You are not God so you can’t be right in every trade.
  • Follow Basic technical: Basic technical knowledge gives you idea that how stock should perform. Like if any stock is not breaking it’s previous day’s low and showing strength in intraday irrespective of market movement, it can be bought with previous day’s low Stoploss. Same way on selling side. I am just giving an example that BPCL was not crossing 463 from 3 sessions and not able to sustain there so if you sell it on intraday basis with that stoploss or even positional, it fallen 40 rs from there. So you have to follow basic technical to improve intraday trading.
  • Buy on Support and Sell on Resistance: This is basic thumb rule for intraday trading that you have to buy strong stocks at support for intraday and sell weak stocks at resistance. This basic formula will give 70% to 80% accuracy. Just do little homework before doing any trade and see the difference. Rather than following anyone, make yourself eligible.
Follow Us On 
Twitter- https://twitter.com/WealthmaxS
Facebook-https://www.facebook.com/wealthmaxsol/
Phone- +91 9285292851
Email - info@wealthmaxsolution.com

Comments

Post a Comment

Popular posts from this blog

Why You Need to Know The Rule of 15*15*15?

When the newbies enter the world of investing, one of the biggest questions that they may face is ‘how much’ and ‘how long’ should they invest? Enter the rule of 15*15*15. In this post, we are going to discuss what is the rule of 15*15*15 (and the rule of 15*15*30) and how it can help you to make your investment decisions. The rule of 15*15*15 The rule of 15*15*15 says that if you invest Rs 15,000 per month in an investment option which gives a return of 15% (CAGR), for a consistent period of 15 years, you will build a final corpus of Rs 1,00,00,000 (One crore). Here, SIP Amount = Rs 15k per month CAGR =15% Time horizon =15 Yrs Final corpus = Rs 1 Cr (Source:  SIP Calculator) Interestingly, your total invested amount is equal to just Rs 27 lakhs. However, over the time period of 15 years, you will build a total wealth of Rs 1 Crore. Rule of 15*15*30 The rule of 15*15*15 gets even better when we double the ‘time horizon’ keeping all the o...
2 comments
Read more

When is the best time to buy a stock?

It is quite difficult to find out the solution when an individual can start investment in the stock market i.e. what is the right time to invest in mutual fund or direct equity. We will try to tell here some conditions or aspects about stock market. Whenever share market touches high or witnesses a sharp correction from its high peak, novice investors get in a dilemma whether to start investment. When the market inches toward higher level or makes a lifetime high every week, new investors fear that market may collapse or go into sharp correction leading to loss for the investors. Again, when the stock market witnesses sharp correction or enters in the bear market, investors do not consider it is the right time for investment. They think that market may continue its correction, so it is not the time for investment. They think that the share prices may further downside more. So, these are the conditions which take place continuously in the stock market and people remain confused whe...
Post a Comment
Read more

Why is investing important?

Money is a mandatory part of every person's life, it plays an important role in life and creating wealth for future. Some people have lots of money, but they don't know how to manage it successfully. Investing is very much important to secure future life. To build wealth, a person has to invest money. If a person doesn't invest, he is just missing out on opportunities to increase his money. Obviously, there are chances to lose money in investments, but if the investment is done by the trader wisely, then he can gain huge money. Many people take suggestions from  stock tips  providers regarding right investment in the right platform. Following are the benefits of financial investment: 1. Increase/grow money - Investing can allow you to grow money fastly. Most investment platforms such as stocks, bonds and mutual funds offer good returns on investment over the long term. This return builds and creating your wealth over time. The growth of money is also important to fu...
Post a Comment
Read more