Intraday tips for stock market trading
Intraday trading or commonly known as the Day Trading is mode of business related to securities, related to the buying and selling of the ‘Financial Instruments’ on the same day of trading. Some of the most popular Financial Instruments engaged with intraday trading are –
Stocks, Stock options,Currencies, Commodity future
It was a time when mainly professional speculators and financial firms used to do intraday trading business exclusively. But as margin trading and the electronic trading becomes popular, there are are many at-home traders are engaged with this.
Some Tips for the Intraday Traders
The most common and effective strategy used in intraday trading is shorting the stocks instead of buying it. In that case the traders use to borrow stocks from his broker in expectation that the price of the stock will fall and he sells the stock borrowed. But it should be mentioned that there are few technical problems associated with it.
Another important practice in day trading is called Trend Following, where the trader assumes the rise or fall in the stock vale will continue. So the simplest tip regarding the Trend Following is to buy the shares, whose stocks are rising and sell the ones, whose stocks are falling
In Range Trading, the trader buys the stock that hits the support level. On other hand stocks hitting the resistance level are sold. Actually, this is completely the opposite of Trend Following technique where people think that if the value of a stock is touching an extreme high it will be falling very soon and vice versa.
There are some other trading techniques like Contrarian Investing, News Playing, Scalping, and Price Action Strategy, which you can follow to get good results in Day Trading.