Looks to be the simplest and the most rewarding intraday trading

It seemingly looks to be the simplest and the most rewarding. But in intraday trading one has to be very fast and quick and have to be on your toes always, so there are certain rules which one has to keep in mind.

• If index is in positive from yesterday and the share you are holding is in minus then it should be cut and if intraday trend of index is in buy then one should buy a stock in which is in plus.
• If index is in minus then one should look to short stocks which are minus and not stocks which are in plus.
• It is not necessary that a stock which is weak today during intraday trading might be weak tomorrow also, simultaneously if a stock is strong today might not be strong tomorrow
• If US Markets have gone up overnight, the markets here in all probability will open strong, so one should be quite careful when buying stocks as the general psychology of public is to buy when good news is there.
• Being contrarians is very important while trading intraday.
• Stop loss is a must while trading intraday.
• Always trade in very liquid stocks i.e. which have very high volume because as entry and exit can be very fast in such stocks.
• Do papers trading before you actually start trading so that when you start making paper profits, then shift to actual trading
• Keep your volume constant e.g.: if you trade in five lots of nifty future then trade in five lots only. This position can be increased only when you are satisfied with your trading for a month. It should not be that one day you buy five lots and next day you trade in ten lots and third day you get a loss and stop trading for two days.
• Fear and Greed are at maximum levels while trading intraday so always have less position when you are new to intraday trading as otherwise you will be mostly under tension.

"Intra day trading strategy is defined as an overall trading strategy characterized by the regular transmission by a customer of a multiple intra day electronic orders to affect both purchase and sale in the same security or securities."

It seemingly looks to be the simplest and the most rewarding. But in intraday trading one has to be very fast and quick and have to be on your toes always, so there are certain rules which one has to keep in mind while doing day trading in Indian stock market or in any stock exchange

Most successful day traders are those that have a system or method and stick to it over and over. There is no "magic formula" that will result in fantastic results. Most day traders that I know plan their trades around a theory or method they have faith in and continue this process over and over.
Day trading is characterized by multiple intra-day trades executed to take advantage of small price movements in stock. Stocks are generally held for minutes or hours and generally positions are closed out overnight for small profits or losses. In the day trading study, a day trader is described as "an individual who conducts intra-day trading in a focused and consistent manner with a primary goal of earning a living through the profits derived from trading strategy".

ADVANTAGES:

• Trading opportunities are more frequent, if you can trade with daily chart, you will see similar trades more often on intraday chart
• You can cut losses very quickly.
• There is no overnight risk if a major piece of news hits your market after the close.

DISADVANTAGES:

• You miss longer term swings and trends
• Profit are smaller because intraday swings are shorter
• Expenses are higher because of more frequent commission or brokerage and slippage.
You must act instantly, if you stop to think you are dead. With daily chart you have a luxury of time but intraday chart demand immediate action.