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Intraday Calls

9/25/2020

ADVANCED ENZYME

Buy
Buy at 275 - 277
Today's Target 300 - 310
Stop loss at 260

9/25/2020

APOLLO HOSPITAL

Buy
Buy at 1950 - 1960
Today's Target 2010 - 2050
Stop loss at 1900

9/25/2020

ROUTE MOBILE

Buy
Buy at 915 - 917
Today's Target 960 - 970
Stop loss at 890

9/25/2020

ALEMBIC PHARMA

Buy
Buy at 941 - 945
Today's Target 975 - 980
Stop loss at 910

What is Intraday Trading?

The word ‘Intraday’ means ‘occuring within the course of one day’. This type of trading which involves the movement of equity, shares, stocks, index futures, index options, and any significant commodity within the same day, building upon the advantages of price moves throughout the day is known as Intraday Trading. Furthermore, intraday trading calls give the recommendations to either buy or sell a financial instrument (equity, shares, stocks, index futures, index options) after having a deep reflection on technical data points where the positions have to be inserted or deleted on the same trading day. Intraday is often used to call attention to the new highs and lows of a commodity up for trade. For example, ‘a new intraday high’ refers to a commodity that has reached a relatively new higher market value during a trading session. This can also be equal to the closing price for some cases.

Square off in Trading

Traders involved in intraday trading keep a close track of intraday price movement by making use of graphical representations and real-time charts in order to build a strategy and maximize their benefits during the short-lasting price fluctuations. A technique called the Square Off is majorly used by the intraday investors to reverse the position and book profit or loss.

Example of Intraday Trading

Consider an example where a trader buys 150 shares of Facebook Inc on some given date at Rs. 1500 around 10 am. The trader then sells these 150 shares on the same day at around 2:30 pm at Rs. 1530. In this situation, the trader is squaring off his position in the given trading session and is generating a profit of Rs. 30 per share. With a total of 150 shares, the trader has made a cumulative profit of Rs. 4500. This is a classic example of intraday trading. Just as a coin has two sides, Intraday Trading too has a lot of advantages and disadvantages associated with it.

Advantages of Intraday Trading:

  • No overnight risk as the position is not affected by any negative news or events.
  • Flexibility to trade even with a limited capital base.
  • Provides an opportunity to work from anywhere at your comfort.
  • Allows you to utilize tight stop-loss orders
  • Meager brokerage with many brokers giving as low as one paise for intraday trading.
  • Perfect opportunity for traders to learn more and access leverages.

Disadvantages of Intraday Trading:

Having a practical approach and focussing on the damages that can be caused by Intraday trading is highly imperative to carry out a decent trade.

  • Increased degree of risk
    - As it is a short-term trading, the decisive abilities of the trader should be highly polished. Any wrong decision can lead to humungous losses within a span of seconds.
  • Quality and Quantity
    - Traders are generally inclined towards making more number of profitable transactions while the investors focus on the quality of the trade.
  • Time Consuming
    - Demands a lot of time and energy from the individual. The trader must not perform any other job or task simultaneously.
  • Requires knowledge
    - Intraday Trading needs the trader to have some amount of knowledge about the various trading strategies and technicalities.
  • Patience and Perseverance
    - Creating wealth through this trading requires a lot of waiting instead of indecisive buying-selling and requires strict attention along with mental strength to pull off an efficient trade.

  • After considering varied factors linked to Intraday Trading, here are some unique tips and strategies for all the enthusiastic amateur and experienced traders.

Tips and Strategies for Intraday Trading:

  • Tip 1- Have Persistence In Gaining Profits:
    Patience is the key to intraday trading. Do not be in a hurry to buy and sell commodities to raise profits and try to last through the price movements for the entire day’s session.
  • Tip 2- Less is More:
    Focussing your strategies on fewer stocks is much more efficient and profitable than to focus on too many stocks at the same time. Thus, avoid developing your interests in a variety of stocks.
  • Tip 3- Gracefully cut the losses:
    If the outcome is not what you expected, settle in and exit the trade using the stop loss principle, keeping in mind the profits and loss that you are ready to bear.
  • Tip 4- Try not to become an Investor involuntarily:
    If the commodity has not given the anticipated result, do not let it turn into an investment involuntarily. The whole idea behind intraday trading is to bring profits to reality, with no open positions at the end of the session.
  • Tip 5- Be Emotionally Intelligent:
    Technical analysis and principles are secondary keys to this trading. Intraday Trading wants you to be emotionally stable as it is quite demanding on the nerves. Sometimes, one can benefit a lot by paying heed to the uneasiness of trade, while squaring off offers a major relief. Focus on this part
  • Tip 6- Strategize:
    Make sure that you plan out the execution of the trade in such a way that you get maximum profit and fewer losses. Focus on analyzing and buying a watermelon with a lesser number of seeds.
  • Tip 7- Evaluate your mistakes:
    If you incur losses continuously over a period of time, then sit back and ponder over the mistakes that you are making. Make notes and try to find out a reason or a pattern behind the failure. This will definitely increase your confidence and reasoning abilities.
  • Tip 8- Have Realistic Goals:
    With predefined entry and exit methods, set a limit to the amount of risk that comes with each trade. Having a strategized goal does not mean that it will lead to profit always, however, it should give you a calculated ratio profit and loss that does not hurt you in the long run.
  • Tip 9- Do not buy in on margins:
    Buying in on margins means that borrowing capital from a broker to carry out a trade. This can be quite detrimental to your capital resources. Using one’s own capital to buy stocks is the only intelligent way to make a trade. Client-Broker relationship is quite parasitic in nature. If the client will prosper, the broker will fail.
  • Tip 10- Health is the biggest wealth:
    It is very crucial to think about yourself if you are active in intraday trading. Take short breaks and relax your mind in order to avoid undue pressure in the race to make profits.

Who Should Engage in Intraday Trading?

  • Basic Capital Requirement:
    Having enough liquidity in account ensures and brings out a sense of security if you are involved in intraday trading. Individuals with sufficient capital can buy multiple stocks at the same time whereas those with a limited capital think of making larger profits through smaller inputs by intraday trading. These people with limited resources can generate profitable trades by having the right mindset and motivation.
  • Personal Factors:
    Intraday Trading is for those individuals who desire to gain a profit on daily basis and want to maintain a stable portfolio. Participants that require certain money over different time frames with anticipated return rates, and compunding do not want to sit for intraday trading.
  • Availability of Time:
    Every day at Intraday trading is a new lesson.This lesson requires one to judiciously learn new trends, analyze, open positions, and monitor progress. For a person who is engaged full time in a demanding profession, or business may not be the right fit for Intraday trading. This trading has tremendous profits to offer to people who can dedicate themselves with a lot of risk-taking abilities and decisiveness.