Intraday Trading

Products & Services : Intraday Trading Account

There are two primary ways stocks create wealth. One is through long-term appreciation. This involves buying a stock and holding it for several years, profiting from the growth of the company. On the other hand, day trading (through an intraday account) is where shares are bought and sold the same day. The profit would be the difference between the buying and selling price.

How intraday trading works?

To do this kind of trading, you need to have an intraday trading account. Only members (brokers) are allowed to trade on the stock exchange so you need to open a day trading account with a brokerage firm like BigFlyFx Broking before you can jump into the fray.
Having an intraday trading account is the first step. But you must understand the basics of intraday trading before putting any real money in it. You must be able to understand market trends if you are to make any money from it.
Once you’ve opened your intraday account, you can go ahead and trade. As we have mentioned above, day trading involves buying and selling shares on the same day. There is no exchange of shares since your buy order is squared off against your sell order on the same day. Day traders rely on price volatility to make gains. Generally, they make a large number of trades, making small gains from each.
One important concept you should understand while opening a day trading account is the concept of margin. This allows you to trade in large volumes. You have to pay a margin to the broker before you start trading. This is a percentage of the transactions you carry out. If the margin is 10 percent, and you want to buy or sell Rs 1 crore worth of shares, you will have to pay Rs 1 lakh to the broker. This increased exposure will raise your chances of making a profit. However, conversely, it may also increase your chances of losses. It’s better to proceed with caution while using this leverage.

How to identify trends?

As we have mentioned above, the profits you can make from your day trading account depends on how well you can identify market trends. One of the essential tools in the day trader’s kit is technical analysis, which uses past price trends to give you an idea of how prices will move in the future.
Day traders can rely on various charts and trend lines to discover how prices are moving. You can make use of information from line charts, bar charts and candlestick charts to help you find out price trends.
A critical tool of technical analysis that day traders rely on is support and resistance levels. These can be identified by using trend lines to draw points at different price points. The upper price band is the resistance, while the lower band is the support. The strategy varies on how the current price is relative to these levels. If the price is moving towards the resistance level, it may not be an excellent time to buy long since prices could hit the resistance and fall back. When prices reach the support level, selling short won’t be a good idea, because prices could bounce back from that level.

What stocks to buy?

Which stocks are the best to trade? The general principle is that a day trader should buy or sell liquid shares. Any profits that are made will depend on how fast you can trade in stocks. Stocks with high liquidity are easier to sell than those that are illiquid. However skilled you might be at identifying price trends, you won’t make money unless you sell and buy at the right time. So look for stocks that have high-volume transactions.
Another aspect you should look at is the volatility, which is the lifeblood of the day trader. Stocks with high volatility enables you to make large profits, but the risks are higher as well. For those who want to play it safe, a moderate amount of volatility with high volumes could be a better option. They can take advantage of small movements in price to make profits.

How to succeed in day trading?

There’s no surefire way of predicting success in day trading, but here are some pointers that should help you after you get going with your intraday trading account.

• Gain knowledge: You will need to keep abreast of the latest national and international events since these will affect stock prices. If the economic outlook looks gloomy, stock prices could take a tumble, as could election results.
• Don’t panic: Day trading needs a cool head on your shoulders. If you panic, and rush to close your transactions before reaching your target, you won’t make money. On the other hand, you should also know when to cut your losses and get out when things don’t go your way. There’s nothing worse than pouring good money after bad.
• Keep expectations modest: Don’t go for windfall profits. It’s always a better idea to take a decent amount of profit from a large number of transactions.
• Use stop loss: Stop loss is an invaluable tool that helps you keep your losses within limits.

Why BigFlyFx Broking is the right choice?

Here are some of the reasons why BigFlyFx Broking is the right choice for your intraday account:

• Long track record: It’s been in the industry since 2012.
• Latest technology: BigFlyFx Broking uses the newest technology to enable smooth transactions.
• Guidance: You get the benefit of technical and fundamental research

Knowledge Center : Intraday Trading Tips

Intraday trading involves buying and selling of stocks within the same trading day. Here stocks are purchased, not with an intention to invest, but for the purpose of earning profits by harnessing the movement of stock indices. Thus, the fluctuations in the prices of the stocks are harnessed to earn profits from the trading of stocks.
An online trading account is used for the purpose of intraday trading. While doing intraday trading, you need to specify that the orders are specific to intraday trading. As the orders are squared off before the end of the trading day, it is also called as Intraday Trading.
Here are some few take away points to keep in mind while doing intraday trading

Intraday Trading indicators

When it comes to booking profits in intraday trading, you will require to do a lot of research. For the same purpose, you need to follow certain indicators. Often intraday tips are believed to be the Holy Grail; this, however, is not entirely accurate. Intraday trading indicators are beneficial tools when used with a comprehensive strategy to maximize returns.

How to make profit in intraday trading

Intraday traders always face inherent risks that exist in the stock markets. Price volatility and daily volume are a couple of factors that play an important role in the stocks picked for daily trading. Traders must not risk over two per cent of their total trading capital on a single trade to ensure the right risk management. So here are a few tips shared to make profit in intraday trading.

Intraday Time Analysis

When it comes to intraday trading, daily charts are the most commonly used charts that represent the price movements on a one-day interval. These charts are a popular intraday trading technique and help illustrate the movement of the prices between the opening bell and closing of the daily trading session. There are several methods in which intraday charts can be used. Know about some of the most commonly used chart.

How to Choose Stocks for Intraday Trading

To succeed as a day trader, it is important to know how to pick stocks for intraday trading. Often people are unable to make profits because they fail to select appropriate stocks to trade during the day. Choosing the right stocks to book profits is an art that you will learn with experience. For beginners, here get some tips to choose stocks for intraday trading.