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Choose liquid stocks: Always choose liquid stocks, never go for stocks that don’t have a higher range and which are not liquid by nature, by liquid what it means is this if you enter a position in the market there should have enough liquid in the market to exit without any trouble.Īn important factor that you should consider while doing intraday trading is don’t get stuck in a trade or don’t get stuck in those shares or underlying assets which are not liquid by nature.This are the rules are followed by beginners and the experts in the market while doing Intraday trading are as follows: Few thumb rules for the Basics of Day trading? So this is known as Basics of Day Trading. It’s just for the cash market.Įven the derivatives segment like futures and options are traded in the intraday market also and it’s got very huge volume in the market. So you will see the price action better and you’ll be in a better position to be able to take better trades to be able to spot better trades in the market than a casual trader and it’s always good was saying that the more time you spent on the market the market rewards you in a much better way.Īnother point of consideration is that intraday trading is done in both cash segment and derivatives markets. The important thing here is that you have to be active in the market throughout the day. It is not for casual traders that I am gonna take one trade for a day and just not think about other trades in the market. Intraday trading is generally for active traders not willing to sit at their desks throughout the day during trading hours.

So it is always advisable not to get greedy about your trade and when your targets are achieved exit immediately. What happens sometimes when you take a trade and have a target in mind but once the position starts reaching a target, you feel that the market would favor your favor. The next important point is always to Avoid Fear and Greed in Day Trading: The main aim of doing this trade is just to take a quick profit and exit the position immediately.

You are not going to have a positional or directional call in the market. The main objective of doing this trade is to earn profit and exit the position. What is the main objective of doing Day trading? So for a trade to be called an intraday trade the buying and selling of the trade have to be completed within the same day. The key term here is the same day which is known as Basics of Day Trading. Day Trading means buying and selling underlying assets which could be commodities, shares, futures contracts, and options contracts on the same day.