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How to make Profit in Intraday Trading?

Last Updated Date - Mar 21, 2023

This Article will discuss in detailed regarding the ways to make profit in Intraday Trading.

TProfit in Intraday Tradinghe main object in investing money n share market is to earn greater returns and profits. The share market is such a market where people, whether traders or investors; all invest their money to buy shares and securities.

However, it is important that before investing money in share market the investor should have complete knowledge of the stock market because incomplete or little knowledge can make the investor lose his money instead of earning profits and returns.

It should also be borne in mind that trading in shares is also risky. So it can be said that unless the investor is willing to take the risk, he should not invest in stock market.

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    What is intraday trading?

    The name itself suggests that in the present situation trade takes place in a single day within the trading period. All the trading transactions are being carried on a certain and fixed day.

    The two most important factors which affect the intraday trading are price fluctuation and volume traded. By these two factors, one can calculate the returns he might receive from trading shares. While investing the trader should keep in mind that he does not take risk more than he can bear.

    Usually, it’s suggested that an investor should not take more than two percent risk. However, it is also said the greater the risk is, the more chance there is to earn profits.

    Tips & Tricks to make profit in Intraday Trading

    The intraday trading is not free from risk. The investors should have a good knowledge about the share market. The shares traded can either bring profits or loss depending on the investing person.

    If the investor does not have good knowledge about the share market, then he might have to suffer loss. Therefore, the investor should read the market-related documents before taking any risk.

    Some of the different Intraday trading strategies are Opening Range Breakout (ORB), Resistance and Support analysis, Demand-Supply Imbalances, 3:1 Risk-Reward Ratio and Relative Strength Index (RSI) and Average Directional Index (ADX).

    Intraday Trading Indicators

    Any investor who wishes to invest in shares must follow some strategies which will help them to earn greater profits with minimum risks. Strategies might change in respect to the current situation and time.

    To keep a check on intraday trading, Investors can take help of Intraday Indicators. Some of the benefits for using this indicator are:

    • It gives an idea of the direction of the general movement of the market.
    • The volatility of the market gives an opportunity to earn greater profits.
    • It helps in assessing the popularity of the shares of a specific company through the volume traded.
    • It helps in understanding the market better and makes investments accordingly.

    Some of the useful intraday trading indicators are

    • Moving Averages:when short-term averages exceed the long-term averages, it shows market direction a bullish. This indicator can help to earn good profits.
    • Bollinger Bands: When the stock is traded at a price below the Bollinger Band lower line, it indicates that the price can increase shortly. Investors can use this opportunity to buy shares.
    • Momentum Oscillators: The level of the oscillator is different from price, it indicates a slow fall in demand. Through this indicator fall in stock price can be measured.
    • Relative Strength Index: It is advised that an investor makes a note of the index before investing. When the index is high, the shares should be sold and when the index indicates a low number the shares should be bought.

    The intraday trading indicator is relevant in avoiding risks and invests in profit earning markets. With the help of the indicator, an investor can make important strategies.

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