Day trading was always on the hype, but it gained huge popularity since the pandemic began. It gave people a motive to stay home and get profited. But along with its rising opportunities, the chances of obtaining profit have gone difficult.
People use various tools before investing in trading platforms. If you fail to pre-determine the appropriate trading techniques you may end up losing your money. Therefore, the article has presented the top five golden intraday trading rules for you. Now you do not need to invest in trading tools. Simply follow the rules to maximize your chances of getting profitable.
Top Five Rules for Day Trading
Trading has a few rules that can lead you to guaranteed success. But for that, you need to know how to utilize it. Here are the top five tricks that can definitely work in your favour.
● Rule 1: Specific Times
Though the market opens at 9:15 AM and closes around 3:30 PM, there is a specific time limit to claim a profit. A particular period between them acts volatile in share marketing. You can get benefits by trading between 9:30 AM to 11 AM or 1 PM to 2:30 PM.
● Rule 2: Trade Considering Your Set Up
This is one of the important intraday trading rules that advises you to trade according to your setup. You must stay aware of the trigger points while buying or selling shares. This would help you invest with confidence. You must invest only what you can afford to lose. Keeping high expectations may end up causing you immense financial harm.
● Rule 3: Select Liquid Shares
Liquidity basically refers to the activeness among buyers and sellers regarding a specific share. In order to buy and sell them on the same day, selecting liquid shares would be ultra-beneficial. You cannot expect to sell your illiquid shares at your desired price. Rather you may have to sell them even at low prices thereby resulting in your loss.
● Rule 4: Keep Scanning the Market
You are advised to make a list of liquid shares under the intraday trading rules. It would enable you to look for opportunities the entire day. Thus, you must stay focused on the share market in order to earn profit. It would create hope for you and perhaps give you the opportunity to retain the best value.
● Rule 5: Ignore Market Trends
It is not even guaranteed for an expert to predict the share market routes. Hence, running behind the trend can be a fool's step. The analyzers use the technical factors to predict the likely movement which is never guaranteed.
Conclusion
Whether you are a novice or an experienced trader, the technical analysis book can help you understand the rules in detail. It would give you the technical knowledge to infer practical consequences. Thus, you can extend your opportunities for profit acquisition by understanding the historic patterns. It can help you understand the trading rules more clearly.
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