Top 10 Golden Rules for Intraday Trading

Intraday Trading Rules 31 Jan

Top 10 Golden Rules for Intraday Trading

Nifty Trading is glad to bring the top 10 intraday trading rules. While there is no guarantee of success and failure in the market, employing the best strategies should be the thing. Intraday trading is a challenge for the traders and it takes lots of courage and patience to succeed.

The golden rules for intraday trading shared here are to guide you in the best way. These rules will reduce your risks and increase your profits. Though most of the traders focus on maximizing profits, it is equally important to implement strategies to reduce losses. We all know money saved is equal to money earned.

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These rules are not in any way mandatory but their application under the situation referred will let you succeed. You can minimize your risks and manage to trade for better profits.

  1. Picking the Best Stocks

Well, when it comes to intraday trading, selection of right stock is crucial. Choose the stocks which are volatile, liquid, and related to a specific sector. The stock should also be maintaining correlation with the general market so that you can easily read their trends.

  1. Trade What you can Afford to Lose

Intraday trading is risky as you can lose your money within few minutes if you do bad trading. Hence never invest everything you have on hold. Always trade the amount that you can afford to lose.

  1. Set Entry, Exit and Stop

Most of the traders don’t fail due to lack of discipline. First and first thing, set enter price, exit, and stop price.

  1. Do Homework

Never trade in the stocks without collecting information. Do proper research and analysis before you pick any stock for trading.

  1. Learn to Overcome Emotions

The best intraday trading rule is to be disciplined and patient. Never follow your emotions blindly. Try to overcome greed and fear. Do not jump in any trade out of too much greed. You may end up losing badly.

  1. Follow Trends and not Opinions

Watch the trends and try to grab the momentum. Never follow your own or someone’s opinions without looking at the trends. Never act against the trends.

  1. Keep Records and Use Them

Most of the times, you can learn from your own experiences. Hence, keep records of all your transactions. You can use them in future to know how effective your particular strategy was and under what conditions.

  1. Stay away from Market Orders

When you are impatient, you tend to follow market orders. Avoid it anyway. Pre-plan your entry, stop, and exit prices.

  1. Restrict Trading in Few Scripts

This is the most common rule every beginner should know. Never invest all your money in all kind of diverse stocks. Trade with a certain amount and in certain stocks. This will help you to learn the behaviour of certain stocks and will reduce your risk. Gradually you can diversify.

  1. Follow Strict Stop Loss

Never trade without strict loss. The markets are moody and you cannot afford to lose due to the high volatility. Hence, keep a strict stop loss and follow it religiously.

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The above golden rules for intraday trading do not offer any jackpot. These are guidelines to succeed you in long run by making your strategies effective and by reducing your risks.

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