5 important things to do before taking a trade in intraday trading

Are you confused about how to do intraday trading?

or are you looking to learn about intraday trading?

Here you go. We have detailed analysis about how to do intraday trading with
less loss to incur.

Because if you think that after a perfect analysis of the stocks and market,
you are not going to lose money in the intraday, then let me tell you that you
are wrong.

How to do intraday trading

There are no intraday traders in this world who are not making losses in intraday trading, frankly saying that in intraday trading there is more chance
to lose money in comparison to making money.

But still, if you follow the instructions below and implement them in your
trading, there is a greater chance of you making money than losing money.

5 important things to do before taking a trade in intraday trading are:

5. Work on a simple chart

There are traders who mess up their charts with lots of indicators and
drawings, and every sort of line in their charts is not a chart; it is
something like a drawing board.

So you do not need to do all these things because, by doing this, you are not
analyzing; rather, you are confusing yourself and nothing else.

Work on any chart type you feel comfortable with, like a renko chart or a line
chart, but it is highly recommended that we look at the candlestick chart
because it gives a good idea and sentiment of the stock on which we are
working to take a trade.

It will be better if we work on some pattern and master that pattern to the
perfection level, or if we work on some one thing on which we may be
comfortable, like support and resistance, trendlines, breakouts, and
breakdowns.

4. Pick the stock

Select your stock at night to do intraday trading the next day.

Because if you are trying to do analysis on the moment of live trading, then
it would be difficult to get the best trading stock opportunity. So, it’s best
to select the stock to remove the headache and tension of picking the right
stock.

Now there are many of us who might be wondering how to pick the best stock.

Then the simple thing to do to pick the stock is to pick the best pattern,
which we may be thinking may fit for us. So, work on one pattern or one
indicator that we may think fits and is best for us, rather than messing up
lots of things.

After picking our best stocks, we should go for important studies relating to
fundamental analysis; if not, then do some technical analysis, for example,
looking at overbought and oversold levels.

After all of these, see some news-related stuff related to the stocks we have
picked.

3. Global market analysis

One of the many things to look up is the global market figures, because every
market in the world is related to another.

Global market
Global market

Global market figures are mostly seen and analyzed just before an hour of
trading or the start of a trading session.

Global markets are easily seen in the MoneyContral app; we just need to search
for global market results on the MoneyControl website.

2. Stoploss is important

Many of us might be wondering: What is stoploss? Stoploss is nothing but a
price that we set, and if touched by the stock, we are easily and
automatically out of it if we are on the wrong side of the trade.

The greed of the traders is so high that even after seeing that the stock is
going down, they never make themselves out of it; rather, they wait till the
stock finishes with 80 percent of their money, sometimes full.

So be aware of it, and every time we make a trade, it should be remembered
that we may put the stoploss first and then the target.

1. Money management

If we are setting our target lower than our stop loss, then it is not
considered a good trade, as we are likely to make less money than our loss.

Target should be doubled than stoploss; for example, if our stoploss is 1,
then our target should be 1 or more than 1.

Everything in the stock market will react against us, but if our money
management is good, then it is for sure that we are going to make money.


Aftermath

Just remember that if we are looking for someone to teach us to select stocks,
then it will never help you or make us confident in our trade.

The selection of stocks should always be an idea and a study of our own
because if we get a profit, it will make us happy, and if we lose, we will get
to learn something from our trade, which is the ultimate thing for anyone who
is serious about trading.

After selection, do some technical analysis with stoploss and money management
to strengthen our profitability.


FAQs

Frequently Asked Questions related to taking trades in intraday
trading.

    • How do I select stocks for intraday trading?
      • Selection should be done on a single-reason basis, like a breakout or
        breakdown, support and resistance, or some chart patterns or
        candlestick patterns that suit us or make us comfortable.
    • What is the most important thing in intraday trading?
      • Stoploss, money management, and a good analysis of the stock.

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