Learning Section - What is Intraday Trading?

It has been seen that most of the Trader, especially new comers come to share market to make fast money through very short term trading (Intraday). The truth is intraday trading is neither based on hot tips nor it is fast money making method.


What Stock Market is not for:

1. It is not fast money making method.
2. It is not based on hot tips.
3. It can’t be learned in single day.
4. It is not just buying and selling of shares.
5. It is not daily profit making strategy so don’t calculate your profit on daily basis. (Calculate profit/loss monthly basis).

Strategies for Intraday trading

The primary strategy of Intraday trading is to earn consistent money on daily basis.    

Analyzing stock price movements - Stock price movements like Open, High, Low and finally close are very important know for any Day Trader.

One more important factor to watch is stock price fluctuations. Stock price fluctuations means by how many rupees or paise the stock is moving (either 
up or down). This gives you an idea on what price to buy and at what price to sell (or first sell and then buy).

Keep a close eye on volumes - Supply and demand means how many buyers are willing to buy (this indicates the demand) and how many sellers are aggressive to sell (this indicates the supply). Always remember the stock price movement depends on supply and demand. Simple thing to remember (not only in stock market or day trading but also in general life) that more demand and less supply means price is going to move up and if more supply and less demand then price is going to come down. 
Overall if you study this strategy carefully then you will come to know whether the people are interested to buy or sell the stock and hence the price moves accordingly that is if see more buyers then the price is going to move up and if you see more sellers then price is going to fall down.