Intraday Future Tips For Sure profit

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Intraday trading: Do’s and Don’ts for earning profits and avoiding losses

Every investor as a beginner will be taught one thumb rule: Do not invest in what you cannot afford to lose. The high volatile nature of the stock market requires every investor to know what he can spare to lose before incurring an investment. There is more amount of risk involved in intra-day trading than share trading. Hence, it is wise to invest such quantum of amount that can be lost in case of turbulent market conditions. In 2009, Satyam Computers scam resulted in a complete wash out of its stocks from a price of Rs. 188 to Rs. 31. Investors who had loaded their whole savings in the stock lost all of it in a day without the slightest hint of a warning. It is very important to invest only on those stocks of companies that have as strong financial base and whose balance sheet and past financials depict a true and fair view. Choosing highly liquid shares that can be readily converted into cash at short notice is also one of the most sought strategies in intra-day trading.

Choosing shares with high liquidity

All day traders somehow have to balance their position at the conclusion of the day trading session. Traders of index-based stocks and large-cap stocks are highly liquid in nature and can be easily liquidated without much difficulty. However, the best intraday future tips will always suggest avoiding playing with mid-cap stocks since they have relatively less liquidity and hence is difficult to find takers for. Further, do not over indulge into trading by taking into multiple stocks simultaneously. Bite only what you can chew. It is ideal to trade in two to three scrips at any point of time since it will give ample window to monitor the stock movement and to grab the right opportunity for unloading it. Diversify your portfolio with a range of stocks so that unexpected down currents of one industry does not affect your entire investment as such.

Research your way to earning share trading profits
No amount of practical knowledge or broker support will help you earn profits from share trading like own dedicated research. It is essential for any trader to engage in deep research so that a complete picture of the stock can be derived to frame future plans. Some stocks will require more time to appreciate in value and to generate wealth maximization. Create a trading watch list and observe such stocks carefully on a daily basis to understand the trend of its performance. It is also necessary to fix your “entry and exit” levels so that investments are made at optimum risk without letting sacrificing on trading profits. Further, use of stock losses to prevent stocks from moving beyond a price that you cannot afford will also ensure that your risk is contained within a limit.