Bengali: এই ব্লগটি এখানে বাংলায় পড়ুন।
Online stock trading needs a lot of discipline and quite a risky game if clubbed with uninformed decisions. One has to gather a lot of subject knowledge and tips to make his/her trading journey less bumpy.
Trading can be done in shares and commodities. The term online stock trading means buying and selling a stock the same day or waiting for just 2-3 days before selling. Selling on the same day is called intraday trade whereas if held for 2-3 days, it is called swing trade.
Furthermore, holding a stock for 2-3 weeks is called positional trade.
To succeed as a trader, it is imperative to possess the knowledge of how to pick stocks and make use of successful trading strategies. To make your trading journey seamless, we have curated 7 online stock trading secrets which are immensely useful for leveraging the investment in the market.
Given the current market scenario, which is highly volatile, there are plenty of online stock trading opportunities. With the help of on-point intraday trading strategies, you can generate a great return on your capital daily.
1. Do your homework – Gather Knowledge on a daily basis
Quality research is one of the most important aspects of intraday trading that traders must always remember. The most common mistake most traders do is overlooking the importance of doing research.
Apart from basis trading knowledge, traders should also be up to date with the latest stock market news and updates. Make a list of stocks that you are confident of and would like to trade-in. Watch as much finance related news as you can and also read the latest blogs on financial websites for succeeding in online stock trading.
Learn from Experts: Best Nifty Intraday Strategy
2. Sometimes you have to follow the trend
When it comes to trading, following the trend cannot harm you as such. On the contrary, it is most fruitful. During a bull market, traders must try to pick the stocks that can potentially arise. On the other hand, during the bear market, finding stocks that are likely to decline is recommended. Also, if you have done some concrete research about your favorite stocks and it has potential, you can invest in it. For example, if you are inclined towards MNCs when it comes to online stock trading, you can check some big players’ prices such as HUL share price(Hindustan Unilever Ltd share).
3. Reserve funds for Online Stock Trading
Setbacks are a part of any sort of investment and trading is no exception. If you mug up successful traders strategies, this point is of prime importance. Setting aside a surplus amount of funds you can trade with and also prepare yourself not to affect your trading even if it is lost. One should always assume it may or may not happen.
4. Time is Money
Intraday trading needs a lot of your time and thus called day trading. You’ll have to dedicate most of your day to it. The process is tricky and requires a trader to track the markets and spot opportunities, which can arise at any time during trading hours.
Some traders find intraday trading highly lucrative but they also do face loss at times as there a few risks associated with it. Hence, it is of high importance to stick to a proper strategy and execute it meticulously.
Time period analysis is imperative in intraday trading as it gives deep insights about the past, present, and probable future of the market. Regardless of whether the trader is trading for short-term or long-term, being proficient in time analysis is the key to success in intraday trading.
The intraday trading charts are valuable for time analysis and show the price movement at regular intervals. This helps traders to take a call on the position and plan future trading actions.
5. Don’t Grab it All – Start with Small Investments
If you are a beginner, then the best trading strategy for intraday is to focus on a maximum of one to two stocks during a session. Tracking and hopping on to new opportunities is easier with just a few stocks. Success will come to you if you are determined to stick around long enough.
As you mug up up more details for research, you will find that more than 75% of all traders quit within the first 3 months. After 6 months, more than 90% have already vanished from the market. Just these basic data demonstrate that if you stick around at least 6 months you are already more than 90% likely to become profitable.
6. Analyze the time trend
Many orders start getting executed the moment markets open in the morning, resulting in price volatility. A big-time trader may be able to analyze these patterns and pick meticulously to make profits. But for novice investors, it is advisable to understand the market without making any initiatives for the first 15 to 20 minutes. The middle hours of the market are likely to be less volatile, and then movement begins to pick up again toward the closing bell.
Suggested Read : 10 Basic Rules of Trading to Always Stay in Profit
7. The approach is what matters
It is not mandatory to dedicate all the time to trading, but that does not mean that you should take trading lightly. Even if you are trading for only a few hours a week, treat those few hours as a business — not a hobby.
I know that, for a lot of people, the stock market is an experiment to make money or a new hobby. It’s no different than looking at cricket or their favourite sports which entertain them.
The stock market is all about perseverance, discipline and consistent effort. People who get into online stock trading to make fortune overnight will most likely fail big time.
The one thing one should do continuously is learning. One of the many ways is online courses. Many traders often face failures in intraday trading because they lack a proper trading strategy.
However, If you are a passionate and stubborn trader who is looking for long term profits rather than just a hobby, then this market is for you.