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Understanding Intraday Trading

As the name might suggest, intraday trading refers to the purchase and sale of stocks on the same day. These stocks are ordinarily bought and sold in large numbers with the hopes of securing profits. Understanding the strategies and basics of intraday trading is a must if you wish to succeed. Continue reading to understand what these terminologies are.

What are some of the basic terminologies of Intraday Trading?

Some of the basics of intraday trading have been touched upon below.

Charts - Pictorial depictions of price movements over a period of time are a key aspect of intraday trading. By referring to these charts it is possible for intraday traders to make efficient and calculated decisions over the short, medium and even long-term. This is because these charts draw your attention towards price fluctuations.

Technical Analysis - This form of analysis helps traders understand market trends. It allows traders to identify what stocks and sectors are in demand. Being able to identify what’s gaining momentum in the markets is a key aspect of intraday trading.

Lot Size - This refers to the number of shares that are bought under a single transaction. As intraday trades ordinarily involve large orders, it is important to understand what a given share’s lot size is.

Long and Short - Intraday traders often enter into each of these trades. Long trades means when stocks are purchased with the expectation of being sold for a profit in the future. While, short trades require the trader to borrow shares which are then sold with the aim of being repurchased for a lower price such that a profit is made following which the shares are returned to the original owner.

Cover Order - This specialised order permits traders to take an intraday position. It entitles them to additional exposure while protecting them with a stop loss order. This means that a market order and a corresponding stop loss are placed simultaneously keeping in mind the outlined trigger price.

To understand intraday trading more comprehensively, take a look at the resources mentioned below.

Angel One Website - One Platform for all your Financial needs

Being aware of how is the market works is really important for trading. Moreover, it is known that investors and traders have different goals and strategies they might wish to implement. The Angel One website is designed to help you cultivate good investing and trading patterns while keeping in mind these goals.

Two Angel One platforms that are worth noting here are the Knowledge Centre and Smart Money¹ portals. Information shared here is broken down into modules that focus on different aspects of intraday trading. After being armed with this knowledge, beginners can start intraday trading and enjoy the website’s easy-to-use navigate interface to learn more.

Knowledge Centre – A Boon for Market Enthusiasts

Regardless of whether you are a seasoned trader or are new to the markets, Angel One’s Knowledge Centre is worth exploring. This portal sheds light on all that intraday trading covers and provides valuable tips and strategies on stock selections, calculating stop losses and spotting intraday trading indicators. The Knowledge Centre also teaches you how to master short-term trading apart from providing insights on pivot points and ratio analysis.

Final Thoughts

The high volume at which intraday trades are conducted and the time frame within which they are bound makes them tricky. Therefore, it is recommended that you be well versed with intraday trade mechanisms before executing actual trades. Learn how to master the markets on Angel One such that you’re more likely to succeed at intraday trading.

Disclaimer

¹Smart Money is not an exchange approved product and any dispute related to this will not be dealt on exchange platform

²This blog is exclusively for educational purpose

³Investments in securities market are subject to market risk, read all the related documents carefully before investing. Brokerage will not exceed the SEBI prescribed limit. https://bit.ly/2VBt5c5

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