Step to Step Guide to Become an Intraday Trader

Learn intraday trading, best intraday trading strategies, intraday trading strategy for beginners.

Intraday trading is a common method of trading in the financial market. It is an art of buying and selling securities like stocks, commodity, currency, derivatives, bonds, Gold etc. within the same day. While the trade does not hold the position in the securities market overnight. Intraday trading is performed when the market opens or the securities are listed in the market.


The orders of purchase and sell of shares placed during the day closed in the market closing time is when the target stop loss becomes a hit. An intraday trader holds a high level of risk when recommended only by a professional day trader who knows when to take a high risk.


In order to become a successful intraday trader, you need to become efficient. You need to make quick decisions and execute trades that are a profitable and minimum loss. You need an intraday trading strategy for beginners which is reliable and proven to deliver profits. Thus, without a proper trading plan and intraday strategy, you can end up losing your hard-earned money in the share market.

Here are step by step procedures you can follow to become a successful intraday trader.


Let’s get started.

Step 1: Do your market suit and risk assessment.

As you decide to put your feet in intraday trading, you need to own risk capacity and must be willing to take the risk. It comes with sentiment and price movements predictions. Before starting an intraday trader must be aware of how much they can invest in the market. That is how much money they have to invest and take the risk. The data and information in front of you and will remind you to put off your limits. You should never cross your limits. You must face losses as a professional trader and do not invest beyond your investing capital in face of gains. Therefore, the first step to becoming a successful intraday trader for beginners is setting up your trading profile.

Step 2: Start your research and study about the trading strategies

As a seasoned trader or an investment advisor try out your trading strategy or paper trading. While paper trading rehearses your best intraday trading strategies and checks its outcomes. This is the biggest advantage of practice on paper trading software. This allows you to not only gain confidence but minimise the risk of loss. The truth teaches you a lot of lessons. You must always enter the market after fully testing your intraday trading strategies and study more about them. You should never test your strategy. Plan your trade if you want to maximize gains.


Step 3: Create a trading routine for yourself

This may be something unique that no one will ever tell you. Taking the risk beyond your capacity is also wrong. You should generate a routine for yourself that should not be off-limits to the market hours but also match your daily life. A professional intraday trader requires to develop a routine that helps them to not miss on to profitable trades.


Step 4: start with investing in a small amount

When you begin your trading you will soon understand that not all trades result in profits. Even those which seem like profitable trades given by some of the brokers are uncertain. Hence, it is always advisable for an intruder trader to start with a small investment. As the market is unpredictable it is not good to invest all your money. Besides, you can divide your money into the different portfolio. Also as an experienced trader, you need to scale up your investment as you get the hang of things. This is more likely to happen to a new trader who invests a high amount on dependable traders than those in comparison to less dependable ones.


Step 5: Follow the one per cent rule

The one per cent rule is highly neglected these days. It is one of the most essential rules for a new intraday trader. You should put only one per cent of investing capital in the trade. For example, if you’re investing capital budget is Rs. 1,00,000 then you should only invest Rs. 1000 in one trade and another Rs. 1,000 in another trade. This will help you to minimize losses if they occur. As one of the successful traders, you must keep this step in your mind. Thus, trade accordingly.


Step 6: Regularly update your trading style

There is no shortcut to learn intraday trading strategy which is perfect. Each requires hard work and patience. A successful trader always keeps on revising its strategy regularly so that it remains up to date with the market sentiments and trends. If you are facing consistent losses then understand that this is the best time to revise your strategy and look back at your plan. However, you must give a strategy ample time to test its efficiency and then take a call.


Step 7: Utilize Stop Loss

It is a key to successful trading to prevent losses in the stock market. No intraday trader enters the market with no stop loss and you too should always use a stop-loss order to a limitation in a different direction of swing price.


The Bottom Line

Here are a few tricks you can utilize to ensure maximum gain. Intraday trading fascinates everyone. However, nothing happens overnight as an intraday trader needs to place a profitable trade. A person needs to devote himself to become a successful intraday trader.