5 Tips to maximise your intraday trading tips

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5 Tips to maximise your intraday trading tips
Intraday trading is one of the lucrative businesses existing today. It requires minimum capital to begin with but has unlimited opportunities to earn manifold within a short span of time. However, with quick returns comes greater risk. An amateur trader can lose his investment as easily as investing money in it. Intraday trading requires one to be agile in financial decisions.
One should be proactive in thinking and should be able to match the facts of the economy and apply his practical knowledge in selection of stocks. It is not a gamble where we can roll some stocks and hope to make returns. Intraday trading requires strong backup of research and backup before making a call, put or hold decision.

The internet is filled with intraday stock tips that promise sky high returns. But not all are correct nor worthy of giving the returns. We have compiled a summary of five reliable and credible intraday trading tips that will prevent losses and also assure returns on your investment. Look for the closing index of the previous day. If it ended in a positive but the stock is holding a negative value it is better to sell it. The returns can be used to purchase any stock of the same portfolio that has a positive vale and possibility of performance.

• It is important to understand that a stock that is not performing for a day or two or is having a negative value has possibilities of bouncing back in the future. The stock if belonging to a company that has seasonal demand may show increase in price only when its profitability increases. Similarly, a strong stock may lose its value and dip in stock prices with fall in demand for its goods. Hence, it is essential to check the financial background of the company before investing in its stocks.

• Having a watch on the performance and ending stock indexes if international stock markets will give a close idea of the future chances of domestic stocks. Most stock prices are tied to crude oil prices and other international economical conditions which make international stock market performances as a barometer to know local demand and supply. Intraday stock tips also include the index figures of stock exchanges of Asia, Europe and America to enable investors to take feasible economic decisions.

• Some days it proves good to be a contrarian than a follower of the crowd. It is not necessary that the crowd is always taking the right decision. Quite often their decisions are triggered by unwarranted news about companies or laws which puts them into action to sell or to buy stocks without considering the real financial impact.

• Maintain a constant volume of trade. Don’t hit for highs or lows based on common trade platforms. Maintain your trade investments in diverse portfolios to reduce risk and to ensure steady returns even during depressing market conditions.