Intraday trading is a game of intelligence and only a strong one can exist. However as an Intraday trader it is desirable to earn money with the help of instructions. There are two key words to win this game, control and flexibility.
Have An Intraday Trading Strategy
You will not blindly trade based on your intuition. Same applies to Intraday Trading Strategy; you need to have a trading system which can help you to generate a trading plan which will assist you in finding the best possible buy or sell price of your shares in today’s market and what will be the target price. The stock that can be purchased or sold in acceptable volume without causing more effect on the prices is one of a liquid stock which has a much average trading volume.
Avoid unpredictable stocks
Normally it is observed that trading stocks of low average with routine volumes or stocks with the early expectation of some big news seems to trade in a most unstable style. Someday even after a prominent declaration — that may be either good or bad (like good results, big order, bad results, plant shutdown etc.) — the stock may deal in a turbulent way. So it is desirable to avoid such disordered stocks.
Many traders find it extremely difficult to book a loss and thus take delivery of a stock if its price goes down. What happens in such a scenario is that you have gone against the basic fundamental of Intraday Trading Strategy by not keeping it an Intraday trade. So now you do not know when the stock will recover and if you will be able to exit.
There is no substitute of Hard Work and if you want to be a successful Intraday trader you need to do lots of Research before taking the trade.
Finally, move with the trend. If the market is in an uptrend or in a bull run, it is usually a good idea to stay long. And if the market is looking bearish then either you can short or wait for stocks to hit their bottom before taking a long position.