Intraday Trading Strategies - Golden Rules for Picking Stocks When Intraday Trad

Posted by Rashmi Dey on January 12th, 2021

Intraday trading is considered as quite riskier than other trading strategies as it involves buying and selling of stocks on the very same day. This is because, in intraday trading, a large number of stocks are bought and sold with the intention of booking profit. Here, the objective is plain and simple: to buy and sell shares within the same day. Before we begin, let's understand what exactly is Intraday trading and the strategies investors need to apply while intraday trading.

Needless to say, intraday trading means purchasing and selling of stocks on the very same day. However, with intraday trading, traders can short sell their shares and then buy back during the rolling settlement period. Experienced traders always recommend selecting the shares which are highly liquid.

Find Entry and Target Price

It is important to determine the entry-level and target price before placing the buy order. It’s quite understandable for a person’s psychology to change post buying of shares. Hence, many traders may sell shares even if the price experiences high growth. As a result, they may lose the best chance of achieving gains because the price goes upward.

Utilizing Stop Loss for Lower Impact

Stop loss is defined as an advanced order placed with the assistance of a stock broker to buy or sell a specific stock once it reaches a price point. It is generally used to restrict the loss or gain in a trade. This is beneficial in limiting the potential loss for investors due to downfall in a stock.

Stop-loss also works great in short selling. Investors who short sell their shares, stop loss acts a boon by minimizing the losses if the price go up beyond their expectations.

Book Your Profits Once You Achieve Your Target

There is a famous quote saying “ As long as greed is stronger than compassion, there will always be suffering”. Many investors suffer from greed or fear in terms of high earning. With the help of stop-loss, investors not only minimize their losses but also book their profits once the target is achieved.

Research Your Wish List Frequently

Successful traders advised to include 10-12 shares in their wishlist and research all the stocks in depth. Here, stock market research is very important as it help investors to get full knowledge of a stock. For instance, do fundamental analysis and technical analysis of stock and try to understand the trend such as the history of a stock, merger, present return and more.

Don't Move Against the Market

Experienced professionals fail to predict the exact market movement. There are many times when all the technical indicators depict a bull market; there is still a decline. However, these factors do not provide any guarantee. If the market does not move according to your expectation, then it is important to exit your position to avoid huge losses.


With intraday trading, traders need to adhere the basic rules in order to avoid losses. Needless to say, intraday trading can offer you bountiful benefits, however there are several factors traders should keep in mind during the selection of the stocks. Liquidity, consistency, patience, volume, volatility are the key ingredients of the intraday trading.

If you are a beginner who wants to gain consistent result from the intraday trading, it is advisable to take services from Swastika Investmart. Swastika Investmart is a renowned stock broking company, known for providing extraordinary stock trading services to its clients.

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Rashmi Dey

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Rashmi Dey
Joined: November 26th, 2020
Articles Posted: 9

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