For a person who is considering trading, you might have come across intraday trading and thought whether it would be a good place to start, no it would not. Intraday in layman language means ‘within the day’. This means that stocks are traded within the regular hours of the day. It is a part of the stock market that eliminates the need for physical share certificates to allow for the buying and selling of shares.
As a beginner, you would feel overwhelmed by the need to decide on trading accounts or trading tools without careful consideration. It is not advisable to make rushed decisions just when you have tested the waters on the stock market. Intratrade is a complex part of the trade that requires highly developed skills to make it profitable. It would not be advisable to jump into the deep end of a pool on your first day, start at the shallow end and work yourself up, sharpening your skills. You wouldn’t want to give up on the first try either, but Intra trade might build the wrong mentality in you of what trading stocks looks like.
Whenever a person is new to a school, they are constantly confused, not knowing where classes are held, which corner the cafeteria is. Constantly finding yourself in your P.E. class when it’s time for math, you end up losing out. The same goes for Intraday trade, you have to know where to look or be at each hour of the day. You need to be at par with international or domestic news, without knowing where to look, you might suffer losses. Stock prices can be affected by quarterly results or RBI policy, as the ‘new kid’ you would still not know how that affects your trading.
Getting rich quick is the notion that all beginners tend to have intraday trading. Since they are venerable, beginners are drawn into WhatsApp, or Facebook groups that offer tips on the best places to invest. Don’t be fooled by what they sell, it might work at first but that is just false hope, trading is risky, a small win should not force you into getting a loan. If you are not a person who is good at multitasking, then do not think about intraday trading as your first step in the stock market. Intraday involves making multiple trades a day, then keeping an eye on them to monitor their movements. As a beginner, it is not advisable to take on stocks that you do not have a background in.
A person cannot learn to ride a bike by reading books on how to ride a bike. They have to get in their seats and take their chances of falling, then get back up to try again. If intraday trading appeals to you, or risk management is your specialty, then go right ahead and learn how to ride an intraday trade bike. Just make sure to have the best stock selections, separate emotions from trade selection, avoid overtrading, as well as have a mentor in intraday trading to earn a profit.