Intraday Training Technique: Everything you need to know about Intraday Trading Basics and Requisite of Intraday Trading and Technical Analysis. What you should know about intraday trading
A. Trading and Demat account
B. Leverage
C. Target and Stop Loss
D. Charts, Candlestick, Tools, etc.
E. Technical Analysis
F. Technical Indicators
G. Discipline and Money Management
Why you should become an intraday trader
You should know about the industry
You should know about the importance of Technical Analysis and its essentials.
1.Trading and Demat Account: To participate in trading, you should have a trading and Demat account.
2.Leverage: we can invest more with less leverage. There is a possibility to make a super profit as well as a super loss.
3.Traget and stop loss: Target places a sell order., which will get executed automatically once the stock reaches that point. It helps you to book profit.
Stop places the sell order, which will get executed automatically once the stock reaches that point. It helps you to limit the losses.
4. chart tools and a candlestick: To be an intraday trader, you should understand and interpret the charts, Candlestick, and pattern well.
We will go into detail in the next session.
5. Technical Analysis: You should know about the underlying principles. Here we predict the stock prices, whether it goes up or down using technical indicators and price action strategies if you want to short sell or long buy a stock.
The technique to identify price movement by analyzing statistical trends gathered from historical trading activity such as price movement and volume.
You have to watch the charts to prepare Technical Analysis.
Technical analysis says why stock price changes. It is because of the collective action of buyers and sellers in the market.
We can find out patterns and charts to identify trends. Charts and trends repeat in the long run. You can become a better trader if you can understand patterns and trends.
Technical Analysis: Assumptions:
A. History tends to repeats itself|: This says about patterns in the graph. When a stock price reaches a specific point, the same thing continues in the future when the
price reaches the specific point again.
B. Price move in trends: You can see price trends either the price goes up, down or it goes to sideways. If you understand trends, You can make a profit.
C. "How is more important than why": Technical analysis always considers "how" than why because it is already incorporated.
D. Market discounts everything: Everything including news, as you can see asset price, as there are a lot of people participate in the share market, you need not be concerned about it. Since all market participant follows these and acts collectively, price movement always shows patterns.
6. Technical Indicators: We have to use many tools to learn charts and patterns like Moving Average, Febinocii entrancement, MACD, etc. We predict the prize by analysing Charts.
7. Discipline and Money Management: If you know/don't know the first 6 points, you can not become a successful intra-day trader. If you lose money, it is a big deal to control your emotions. Suppose if you lose 1000$ or 10000$, you forget your target, stop loss, etc. I have seen many people suffer loss because they could not control their emotions when they suffer loss. If you are planning to do intra-day trading, set strict targets, and the stop-loss and follow. Do not change your stop loss when the price falls.
There is also the concept of Risk to Reward Ratio, which we will discuss in later blogs.
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