AllIndiaEvent today we will know in very simple language how to trade in share market, so that you will be able to earn well in Intraday trading. And will also tell you some such tips, which if you follow, you will definitely be able to become a successful trader.
Many people do trading in the stock market but due to lack of proper knowledge, they drown their money. Then they like to learn after the money sinks. Therefore, it is very important for you to have knowledge of it before trading. So that the chances of you getting hurt are least. You all know there are risks in the stock market. But if you do this by understanding it, then you can earn good profit by reducing the loss.
To trade in the share market, you will first need a Demat and Trading account. With this you can also buy and sell shares from the market. You can easily open a Demat and Trading account simultaneously with an online broker. If you want to know how to open it, then definitely read it.
Intraday trading is used by most of the people to trade in the stock market. In this, you buy a share in a day and you sell it on the same day, this is called Intraday Trading. But it also has some Advantage and Disadvantage. It is very important to know both.
Advantages of Intraday Trading
Margin is available:-
Margin is very much available in Intraday trading. Margin means a share is of 300 but you can buy it in intraday only in 40 or around it. This margin is given to you by the broker. With which you can buy shares in more quantity with less money.
Earning Money in Short Time:-
You can earn money from trading in a very short time. You don’t have to wait for long. Sometimes you can earn good money within minutes. But for this it is very important to take the right trade.
Earning even from the fall in the market: –
In Intraday Trading, you earn both in the rise and fall of the price. That is, if you think a stock is going to fall today. So by selling that stock at the above price, you can earn profit by buying it down on the same day. This is called short selling.
With this you can earn money regularly every day. There are many people who make good money from intraday trading in the stock market. But for this it is very important to learn. Otherwise, you will lose all your money even if you earn.
Disadvantage of Intraday Trading
Loss in a short time:-
Just as you earn money in a day, in the same way you also lose a day. It will not happen at all that you will continue to earn money every day, one day you may also suffer loss. You need to be ready for this. But you have to keep in mind that there should be a loss at least for the day and you should be in profit for the most days.
There is a lot of risk in intraday trading as compared to buying shares for a long time. Because in this you will have to sell the shares you bought today. Otherwise, the broker will sell your shares for profit or loss before the market closes.
How to earn money from trading in share market
Stock Selection: –
To earn money from trading in the stock market, first of all it is very important to select the best stock. You have to trade in such stock, in which more buying and selling keep happening. This will keep the stock going up and down and you will be able to exit quickly when you make profit.
You do not have to trade in the market for a long time. When the market starts in the morning, then you should first look in which direction the market seems to be going. After that you have to trade only from 10 to 2 o’clock.
Must move with the market: –
You should always take a trade in the same direction the market is going while trading. If you trade in the opposite direction, then there may be a profit once but the possibility of more loss is very high. So you should go according to the market.
Putting Stop Loss:- The biggest thing is it is very important for you to put a stop loss while placing a trade in any stock. This will reduce your losses. It’s possible that every trade you put in has gone against you. If you have not put stop loss, then you may also suffer a big loss.
Stay updated with news:- Whatever news comes in the market of that stock in whichever stock you are trading, you must stay updated. Because the market reacts to it very soon. So it is very important for you to take care.
Trading in the stock market is the most risky, the more you practice in trading, the more you will be able to learn well. But you should start with very little money first. Invest as much money as you can, even if you are in loss, it does not matter much.