Intraday Trading With 1000 Rs: Intraday trading involves buying and selling securities within the same trading day. The securities are purchased, not with the intention to invest, but for the purpose of earning profits by harnessing the movement of a security.
Thus, the fluctuations in the prices of the securities are harnessed to earn profits from the trading of stocks.
How To Pick 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.
The criteria to find the best intraday stocks boils down to selecting highly liquid stocks. Liquidity is the most important tip when choosing the right stocks to trade during the day.
Liquid stocks have huge trading volumes whereby larger quantities can be purchased and sold without significantly affecting the price.
Generally, lesser liquid stocks do not provide traders with the opportunity to purchase and sell larger quantities due to the lack of too many participants.
Some traders may argue that illiquid stocks offer bigger opportunities with rapid price modifications. However, statistics show that volatile stocks show greater movements in a short period of time.
Leave Behind Your Greed And Your Fears
In the stock market, there are two cardinal sins one should try to avoid at all costs. GREED and FEAR. These two factors affect the decisions traders make most often.
It is best if you can keep these psychological factors in check when you are making trading decisions. They sometimes cause traders to bite bigger than they can chew, which is never advisable.
It is important to finalize some stocks and position oneself only concerning them. No trader can make profits every day. If you try to run behind that mirage, you will only end up disappointing yourself time and again.
When the wind is against you, you will have little choice except to book a loss. So, as an intraday trader, you should always keep an eye on the limits, and try to stay within them.
Keep Your Entry And Exit Points Fixed
Before you place the buy order, always determine the entry point and the price target of the stock. Keeping a fixed point for your entry and exit will also ensure that you do not sell the shares off as soon as you see a slight rise in the prices.
Because of this tendency, you might lose the chance to make a bigger profit when the price of the stock rises further. Keeping fixed entry and exit points will also loosen the grip of fear and greed since it will take away some of the uncertainty from the process.
Follow The Trend
When you are taking part in intraday trading, following the trend is your safest bet in ensuring profit. How likely is it that trend reversals would happen within the span of one day?
Making trade decisions based on the possible reversal of trends might result in profits from time to time, but, in most cases, they will not.
Also Read: How to Select Intraday Stock in 1 Minute? – Intraday Stock Tips!
Can I Start Intraday Trading With 1000 Rs?
When it comes to intraday trading you can definitely start your trading journey with 1000 Rs but if you think you can leave your job and start generating a consistent income with 1000 Rs that can sustain your expenses you are completely mistaken.
This is a good amount for you to learn and gain experience in the market. Even if you lose this money it won’t bother you much. Once you can start to generate a consistent income with 1000 Rs you can slowly start increasing your capital.
That’s all for the article on “Intraday Trading With 1000 Rs”, We hope you enjoyed reading it. Happy Investing!
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