We all know that trading in the stock market is not so easy as it considered orally, for daily trading in you need to track the market on all basis especially those are indulge in Day Trading / Intraday Trading, Before we proceed lets clear the concept of Intraday Trading:-
“A person or individual who is engaged in purchasing or selling of stocks within the same day is Intraday Trading “
But how can we do it? Is still a question mark for many. For this just follow a very simple top-down approach to understand how the market can behave for the very next day.
For a trader, it is very important to know the next day market for which need to look not only the domestic ques but the global outlook is also very important as the Indian market is on its developing stages.
Tracking of Market:-
For an everyday trader, it is essential to know about the global ques along with domestic market So a trader first need to check out the Closing of “US & Europe Market”.
After this, we should check the Opening of Asian Market, whatever happened overnight in US & Europe market will make an impact on the opening of the Asian market.
Once Asian market opened its important for Indian traders to check the opening of SGX NIFTY, it acts as an opening indicator for the Indian market, it also takes the cues from another market ( US & Europe Impact on Asian Market) which leads to indicate the opening of the Indian market.
At last, a trader should check the impact of any News or Data which can create an impact on market should be tracked prior, Impact of any Micro or Macroeconomic news should be considered while one is tracking the market because it may give impact on the same day or can affect later on.
Once a trader is clear about the opening of market the second most important work is to track the stock for trading, No one can directly jump and purchase any stock after just hearing the name though many newcomers do that only as they are not aware of the process.
Points to Remember while Day Trading:-
Trade-in Liquid Stocks:
Volume plays a vital role while you trade in the market so a beginner its better to trade only in liquid stocks or in blue chips & always follow proper research and self-study before taking any trade. The market is inherently volatile in nature you cannot blame anyone for your loss.
Follow Market News & Views:
One should always be aware of market updates as it actually impacts on the performance of that particular sector/stock.
Avoid Unplanned Trades:
Many often if you are not clear about the market condition, avoid taking any trades into the market because it’s better to sit without trade rather then booking an unnecessary loss.