Intraday trading is also known as day trading. It refers to the selling and buying stocks within in a day. For example, suppose a trader bought stock at $300 when the stocks price is low and sold the stock on the same day when the price of stocks becomes high i.e. $400.This type of trading which is done within a day is known as Intraday Trading.
It is the best trading Strategy in stock market. Using this strategy, traders make smart money in Singapore stock market. It provides more profit in short time.
“To be a good trader, you need to trade with your eyes open, recognize real trends and turns, and not waste time or energy on regrets and wishful thinking.” – Alexander Elder
There are 4 intraday trading strategies and they are:-
Scalping: – It includes selling of stocks immediately as soon as the trade becomes profitable. It is powerful as small trades become profitable and traders can shorten the losses.
Fading: – It includes shorting stocks with speedy upward move. Traders assume that other investors may take long position. And this misconception becomes the imbalance between selling and buying and resulted in stock goes downward.
Daily Pivots: – It includes buying stocks at low price of the day and selling them when the price becomes high on the day.
Momentum: – It involves trading on the basis of released news. In this strategy, traders buy stocks when price is moving upward with high volume and sells when price moves down with volume.
Day Trading involves Intraday Trading Signals which are the indicators of when to enter the market and take the position and when to exit from the market. In other words Signals alert the trader about the prices of stocks in market i.e. alerts about the increment and decrement of stock price, so that trader would take the decision for selling and buying stocks in the market.
Benefits of Intraday Trading:-
1) Less Risk:-The risk of overnight is zero as the trader close the position at the end of day and thus the movements during the night will not affect the profit of the trader.
2) More Profit:-Day Traders can take profit from both rise and fall in market.
3) Low margin & High Leverage:-It requires low margin and provides high leverage on trading capital.
4) High Returns:-It provides high returns if good strategy is used.
5) More Trades:-It provides more opportunities as the trader can have several trades within a day as there is no hold position.
6) It has an advantage that trader can withdraw the cash at any time in case of any emergency.
Intraday Trading Tips:-
Those who are new in the market they need to know some intraday trading tips for doing day trading. Here are some tips for the beginners:-
1) Instead of focusing on money, traders should focus on their day trades as if trader will take care of going in and out the position than they can get profit.
2) Analyze the stock price carefully, than sell or buy according to the market price.
3) Try to focus on limiting risk instead of calculating amount of money.
4) Keep in mind that you are trading other traders not the stocks. Try to understand the psychology of your competitors.
5) Always try to do frequent sell and buy as holding may result in loss.
Intraday Trading could lead to high profit if the trader will follow the market and analyze it carefully with good strategy. This trading could result in the best trading technique as compared to the positional trading. There are various Intraday Trading tips provider in Singapore market but the trader has to choose the best one to gain the profit.