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Intraday Tips

What is intraday trading and How to do it?

Know More About Intraday Trading 

Thanks to the online trading platforms, stock trading is a matter of clicks nowadays. Anyone who has the basic understanding of the trading concepts can do it without any hassles.

However, even if the operational part has become simple; the technicalities of it need to be mastered to make it profitable.

Stock trading terminology is complex and typical. It is essential to understand it beforehand.

Intraday trading, for example, is a term that is quite popular. What is it? Why is intraday trading so popular? Are you also puzzled with the similar doubts? The blog tries to answer all your queries.

Also Read : Best Intraday Tips App for an Indian Stock Market

Intraday trading is the ‘same day’ business

As the name suggests, when we buy and sell a stock within the same trading day, it is known as Intraday Trading.

It is quite clear that the objective of the intraday trading is not to invest money, but to reap the profit. Traders buy stocks that are speculated for high movement of price within the same trading day.

Generally, high volumes are bought to increase the profitability. Also, low-priced stocks are considered ideal for it.

Online trading has made intraday trading quite simple. You need to specify that the trade is for intraday.

Then, it will be squared off before the trading day ends.

Points to ponder

  • Follow the Intraday Trading Tips: Since you must square off the position before the trading day ends, you should be thoroughly confident about it. Hence, you must refer the tips given by trading gurus.
  • Follow the trading indicators:It is critically important to follow the trading indicators in case of intraday trading. The risk factor is high, and one can’t assume that a stock price is going to increase intraday unless there is any indicator for it.
  • Exit at the right moment: Whether you book profit or loss, it is essential to do it at the right moment. Timing is crucial here. If you feel that the stock price is going beyond the threshold level, then get out of the risk by squaring off immediately. Similarly, don’t wait for a stock price to rise further if it has reached the upper threshold limit. Square it off and book the profit. The upper and lower threshold values should be decided by you.

Intraday trading is a tricky business, but it has immense potential. Pick the right stocks and exit the holding at the right time to reap reasonable profits.

If you are thinking for free intraday tips A1 Intraday Tips is always there to help you to give you maximum profit by minimum risk by providing best intraday trading tips. For Free Trial you can register here to avail our Free Intraday Tips for 2 days. You can also download A1 Intraday Tips mobile app here. For more information call us at 07506090788 / 07600797534.

Also Read : How can we make consistent profit in Intraday Trading?

 

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Stock Market

What is market order and limit order in trading?

Difference Between Market Order and Limit Order 

A single intraday trading order in NSE market is either a buy order or a short sell order. An order can be used either to enter an intraday trade or to exit a intraday trade. If a trader takes up a position with a buy order, then he will exit his position by a sell order.  Also if the day traders enter the trade with a sell order thinking that the stock will go down, then his short sell position will be square off by placing a buy order of the particular stock.  All stock market either buying or selling transactions are subject to the availability of stocks and can vary significantly based on the timing and size of the order and the liquidity of the stock in the NSE Market. When intraday traders want to either buy or sell a stock, he can do the same either by placing a Market order or a Limit order in NSE market. 

Market orders:  Market orders places by traders will be executed at the best available price in the NSE market, however the execution time of the orders and the price is not guaranteed.  Market orders are used when you definitely want your order to be processed, and are willing to risk getting a slightly different price. If you are buying, your market order will get filled at the ask price, as that is the price someone else is currently willing to sell at. If you are selling, your market order will get filled at the bid price, as that is the price someone else is currently willing to buy at. Traders cannot place Market orders outside the market trading hours or when trading in a particular stock is halted or suspended for any reasons. A market order that is placed after trading hours will be filled at the market price on open the next trading day.

How to Place a Market Order with example

While placing Market Order one needs to place specific quantity for buying or selling.

If a Day traders Rakesh wants buy 100 shares of Yes Bank .Stock is trading at Rs. 310. Rakesh thinks that stock price of Yes bank is in a definite uptrend and prices will go up immediately. To Do quick trading he should place a market order as he will get desired quantity at best possible price at that time in the nse market.

Risks of Market Order

The biggest risk of market orders is the execution at the desired price is not guaranteed. Stock price changes by every minute and second. In market order, one can get desired quantity but price can move and sometimes that’s disadvantage.

Limit orders: Limit orders allow you to set a maximum purchase price for your buy order, or a minimum sale price for your sell orders. If the market doesn’t reach your limit price, your order will not be executed.  Limit orders may or may not get filled depending upon how the market is moving, but if they do get filled it will always be at the chosen price, or better price.  You can place an ‘At Limit’ order during market hours. You can also place an ‘At Limit’ order when the market is closed and it will be queued ready for processing when the market opens.  Please note that an ‘At Limit’ order will not be accepted, without any advice to you, if we consider the limit price to be too far away from the prevailing market price of that stock

While the process of buying and selling stocks may be simple to a day trader but, knowing the differences between a market and limit order is very good to for day traders to make money in NSE market. A market order is can be used to executing the order at fastest speed, while a limit order place will always ensure that price at which you want to execute the trade is met before the trade is actually executed in NSE. 

One a Day traders has a adequate knowledge of the order types as above he can choose what stocks to buy, when to buy,  what price you want to buy it, how long to hold it, and very important when to exit from the said stocks by selling the same.

How to Place a Limit Order with example

While placing limit order one needs to place specific price for buying or selling. In case of buying your order will only get executed below or at the price you’ve specified (Limit) while placing likewise, while selling your order will get executed above or at the price you’ve specified.

Mr Rakesh wants to buy 100 shares of Hexaware. Stock is trading at Rs. 404. Trader Rakesh thinks that stock price will drag a bit from current level and bounce back again. If he puts limit order of 401 then when stock come to 401 his buy order will get executed.

Risks of Limit Order

The biggest risk of limit orders is that there is no guarantee of execution of the buy or sell order in NSE market. While in limit order you get control over price but not on the quantity of the stock. Sometimes, if may reach to your limit price but if there is other pending orders before your order, your order may not get execute? So if you have placed the limit order, you will be required to constantly monitor whether your order has been executed or not.

A Trader should himself take a decision, depending on whether he want the order to be executed quickly or at a specific price, accordingly he can placed the order in the NSE market via his trading terminal.

If you are thinking for free intraday tips A1 Intraday Tips is always there to help you to give you maximum profit by minimum risk by providing best intraday trading tips. For Free Trial you can register here to avail our Free Intraday Tips for 2 days. You can also download A1 Intraday Tips mobile app here. For more information call us at 07506090788 / 07600797534.

Also Read:

What is LMT in Trading?

What is margin intraday trading?

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intraday trading

What is margin intraday trading?

Know More About Margin Intraday Trading 

Intraday Trading is done by traders who want to make money from the expected upward or downward movement in price of a stock during the day but have limited money for trading. Margin trading is an easy way of making a fast money using others money. Intraday Margin is a best solution for day traders who have small capital but want to make money. A  Broker gives leverage or intraday margin up to 5 to 10 times of the money or stocks held in the trading amount depending on broker to broker where the trader’s holds his demat cum trading account.

Today in the modern world every broker provides margin for day trading and it differs from broker to broker. In this system a margin account is maintained by which you are able to buy more quantities of a stock either in cash segment or futures segment, it’s like the broker is lending the money to buy/short shares and keep your stocks with him as collateral or security. 

Intraday Margin – Process: The process is very simple; you will have to pay an amount of money for example 25,000 upfront to the broker in cash. On this the broker will give you 5-7 times of margin to trade. The margin money intraday trading that we are giving can be used by broker to recover his money by squaring off our trades if we our trade goes wrong and we don’t pay the loss to him.

A traders needs to square off his holding position at the end of every trading session. If he has bought shares, he has to sell them. And if he has short sell the shares, he will have to buy them at the end of the session. If he wants he can take the delivery of the shares by paying the extra money to the broker. If at any point of time, if we don’t square off our open orders, the broker will automatically square off our position in the market at a stipulated time.

Example of Margin based Intraday Trading

Mr Deepak Buy’s 100 shares of RBLBANK with CMP of Rs. 500. The total trade value of this transaction will be (500*100) = Rs. 50,000. If Deepak is buying with an intraday perspective using the intraday margin to square off the position same day under Margin Product, he would be required to pay only the Margin% required for the amount. If the margin required is 20%; then the amount required for the transaction would be 20% of Rs. 50,000 i.e. Rs. 10,000.  So instead of 50,000 even if he has Rs 10,000 in this account he can do the trading.

Mr Deepak a day trader  if sells the 100 shares of RBL Bank after an hour at  520, he will end up earning Rs 2000/-  (20 Rs on each share x 100 shares) 

We provide daily one equity call and 2-3 fno calls daily and to trade in our all calls, you should have 1.5 Lakhs to 2 Lakhs of capital with 5-7 times of margin. Even if you have 5000 or 10,000 of capital, still you can trade in our all calls in equity segment.  To know more about trading our Fno calls in cash please visit: http://www.a1intradaytips.in/trading-fnocalls-in-cash-segment.html

We are here to help small day traders to make money using intraday trading, if a broker is giving u a good margin, you can earn lot of money using your small capital. 

If you are thinking for free intraday tips A1 Intraday Tips is always there to help you to give you maximum profit by minimum risk by providing best intraday trading tips. For Free Trial you can register here to avail our Free Intraday Tips for 2 days. You can also download A1 Intraday Tips mobile app here. For more information call us at 07506090788 / 07600797534.

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intraday trading

Is it safe to do intraday trading?

Best tips for safe Intraday trading

Intraday trading can be safe, money making too as well as it can be risky too.  If you follow the following things, and master them, we are sure day trading will be very safe and could become a money making machine.

Knowledge First :  Before you start day trading, as a novice investor, first try to gain maximum knowledge of the working of the share market. We have developed  a knowledge centre (link- http://www.a1intradaytips.in/Learn-about-stock-market.html), which will really help to gain a very good knowledge for free. A wise words, If you learn more you can earn more in nse market.

Also Read: What is the best online stock trading site for a beginner?

Prepare a Trading Plan : Plan you trade, Define the strategies that you use to trade, plan your risk per trade or for the day. If market is positive and is trending up, he can use buy first and sell later strategy.  If market opens with the gap up and is trending down, he can short and buy later to make money. if the market open lower in red but if its trending up, he can employ a cautions buy approach with selling for short profits. Every trader has his own plan, a trader who think that the stock will go down can sell the stock thinking to make a money, while the other trader may buy that stock, thinking that it will go up do to some  other reasons that he thinks are correct. Fundamentally a Stock can look very strong but technically on daily charts in may look weak. Since you are doing day trading, you should trade using Charts, you should see daily / hourly or 30/15/5 mins charts and plan your trade accordingly.

Set your Daily Income and Loss Targets: A trader can set a risk of Rs 1000 per trade and 2500 as his risk for the day. A trader should also set his profit target like for example he can set a  profit of Rs 1500 for a trade and say 3000 for the day. Once he get the profits, he should exit the trade and books his profits. If still he wants to keep his positions open, he should put stop loss on his profits.

Example: A Trader buys 500 Shares of Canbank @ 376, in short span of time say in 15 mins, stock moves up to 380 levels. Now here the trader is earning a profit of Rs 4 per share i.e 2000.  say after few mins stock moves up by 2 Rs more and trades @ 382. Here trader can change set the  stop loss to 380 and can hold the stock for some more time.  Here he has lock his profit of Rs 2000/-. He will gain more if stock moves ahead and he square off his trade at higher rates.

Plan your Trading Hours for the day: As per our experience in day trading, Don’t start trading as soon as market opens, you should first wait for  markets to settle i.e you should see, which sector is moving up, and which stocks of those sector are also going up or vice versa if market is moving down. In India market opens @ 09:15 so you can place your first trade after 09:30. As per our experience 09:30 to 12 is best time to trade and in  Second session you can place you trade between 1:30 to 3:00 pm. Normally during 12 to 1:30 many traders take lunch breaks so volume slows down during this time. Also after 3.00 there can be lot of unwinding of positions happen during that time, so it can be risky to trade after 3.00 pm till market close.

To summaries, if you trade with a sound knowledge and using the above techniques, you are sure to avoid losses and make money in NSE market.

If you are thinking for free intraday tips A1 Intraday Tips is always there to help you to give you maximum profit by minimum risk by providing best intraday trading tips. For Free Trial you can register here to avail our Free Intraday Tips for 2 days. You can also download A1 Intraday Tips mobile app here. For more information call us at 07506090788 / 07600797534.

Also Read: How much money do you need to start day trading?

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intraday trading

What is the best online stock trading site for a beginner?

Best Online Stock Trading Sites for Beginners 2018

Now a days, there a lot of online stock trading websites available for traders and beginners.  Now due to growth of Internet, every broker has develops its own website for trading.  The trading system offered by brokers on their respective website differs according to the charges they take as installation and maintenance charges or the brokerage rate they offer to their clients.

These brokers also provide their own software’s  for trading in equities, f&o in nse markets. You can download the setup from their download section and installed the same in your laptops or desktop.

There are separate  software’s  are available  according to the operating systems on your machine. They also have android and apple applications which you can download from Google Play store for your Android Mobiles or Itunes in Apple store  or your Iphones.

Also Read: How much money do you need to start day trading?

Companies like India Infoline, Motilal Oswal, Kotak securties, Sharekhan, ICICI Direct, Angel broking, 5 paisa, Aditya Birla money, Samco, Zerodha  are some of the leading online stock trading websites.

Before you opened your account, you have compare the following things and then signed the account opening documents with them

1) Account Opening Charges

2) Annual Demat Maintenance Charges

3) Brokerage Structure

4) Available Intraday Exposure

Some broking companies offer Free Account opening but they charges higher broking charges. If you give a Big fat cheque while opening a account and commit a high amount of day trading  every day, they can charge you a nominal brokerage.

There a some broking companies who also provide some share tips to their clients.  They may have their own research house or they can forward tips from other Share tips proving companies.

We are in to intraday trading tips providing advisory business since  very long time with extensive knowledge of the working of the share market. As a share tips advisory we have seen lot of up and downs in the market.

If you are thinking for free intraday tips A1 Intraday Tips is always there to help you to give you maximum profit by minimum risk by providing best intraday trading tips. For Free Trial you can register here to avail our Free Intraday Tips for 2 days. You can also download A1 Intraday Tips mobile app here. For more information call us at 07506090788 / 07600797534.

Also Read: How do I find stocks to day trade?

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intraday trading

How much money needed to start day trading in India?

Every business need capital, Capital to a day trader is like Cloths to a Cloth Store owner.

As you are doing day trading business, you need money as a capital to start your  business. Once you have finalised that you want to make Money by doing day trading in NSE market, you have to bring in your money to invest in the share market.  The money that is left with you after keeping aside funds  for your daily needs, for any emergency, can be transferred to your demat cum trading account for using it has a capital for your day trading business.

2 Days Free Trial for Intraday Tips

Money Required to Start Day Trading

The quantum of money depends on person to person, a small trader can start with a capital of 5000 also and a Rich investor can start with a capital of 5 lakhs too.

if you are new to share market and even if you have lot of money, we still want you to start with a small capital of say 25,000 to start your day trading for some days. Later on if you are gaining confidence an also earning some money doing day trading, you can always increase the capital in the future. Risk capability differs person to person so any trader should take risk as per their capability.

We daily provide 4-5 intraday calls in a day with proper followup by sms to our clients. We don’t provide all 4-5 calls at a time, but send them one by one during the day. We see to it that not more than 2-3 calls are open at time.

Also Read: How do I find stocks to day trade?

To Trade in our all calls you should have a capital of  around 1 Lakhs to 1.5 Lakhs with 5-7 times of intraday margin given by your broker to trade for the day.  If you start trading with us with a capital of 25,000 and your broker gives 7 times margin you tradable capital for the day becomes 1,75,000/– .  So Divide this capital in to 3 parts i.e  50,000 each.  Now trade each part in one call at at time. i.e Buy  or Short Shares worth Rs 50,000 in equity segment.  Trade our F&o call also in Cash Segment by Adjusting the rate difference in both the segment.

To Sum up,  a trader can start day trading with a small capital of  Rs 1000 also and trade in small quantities and can become a Very Investor by ploughing back the profits made by doing intraday trading in NSE market.

Download A1 Intraday Tips Mobile App

If you are thinking for free intraday tips A1 Intraday Tips is always there to help you to give you maximum profit by minimum risk by providing best intraday trading tips. For Free Trial you can register here to avail our Free Intraday Tips for 2 days. You can also download A1 Intraday Tips mobile app here. For more information call us at 07506090788 / 07600797534.

Also Read: What are the best indicators for swing trading?

Categories
Stock Market

How do I find stocks to day trade?

Tips for Picking the Right Stocks for Day Trading

Day trading takes a lot of time to master. Develop or learn a strategy, and then practice it thoroughly for a number of days until it gives you good results. You can do this by either trading a Virtual Free trading game account or by doing paper trading. Once you ready with your strategy for your day trading, and also you have gauge the trend of the market you can start with the real trading in the NSE market. Start trading with say 25-50 shares, even if you can afford more, later on you can increase the trading qty. If market is bullish for the day, i.e. market is trending up. Select a sector and the stock which is also going up from the 1000’s of stock available for day trading.

Also Read: What are the best indicators for swing trading?

Stock Selection for day trading

Stock Selection means identifying the stock that you will trade for the day. This will include lot of work before market opens for trading. First Read Financial news papers, Watch any Business News TV Channels like CNVC TV 18, NDTV Profit, etc Before / During the Trading hours. A Trader should visit sgxnifty.org to view the sqx nifty charts trading in singapore markets in the morning, you can predict the nifty openings by looking at the SGX nifty movements in the morning before our Indian NSE market opens for day trading. Also you can check the news for any change in govt policy which may impact a particular sector. Any change in Crude oil rates have impact on oil stocks. An Earnings or any bad news report of a particular company can also have impact on the move of the stock.

Also Read: What is a good RSI number?

You select a Stock with Good Volumes particularly a Large cap stocks for your Day trade. Since you are also ready with your daily income and loss targets, plan your trade accordingly. At any point of time, if you think you trade has gone wrong, square-off your positions before it turns in to a huge loss. You can always take a another trade by saving your valuable capital. If market open on a weak note and is trending down, you can use this as opportunity to earn by selling at higher levels and squaring off at lower levels to make money. There are certain occasions when market trades in a range. You should avoid day trading during this time. Wait for market to consolidate and give you a visible trend either up or down.

Learn from your negative trades as well as your positive trades, think which stategy in which market suits you better and prepare your own trading plan. Keep changing your trading plan according to its results as one needs to improve day by day to fine tune it.

If you are a new to trading, you are likely to suffer some losses during your learning period. We advise you to take benefits of experience advisory like us to Advise you in day trading. You can take our Two days Free trial and trade in our intraday tips, make money and then pay us later to continue our services.  You can also download A1 Intraday Tips mobile app here. For more information call us at 07506090788 / 07600797534.

Also Read: What is a Daily Chart in Intraday Trading?

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Stock Market

What is a Daily Chart in Intraday Trading?

What is the daily chart?

Daily chart in stock market – First of all we  will try  to explain the meaning  of chart, Charts plot historical data based on a combination of price of the stock, trading volume of the stock  with time intervals. Chart will tell us the movement of price through time and  vertical & horizontal measures. Charts also represent filled buying order and selling order of that particular time in the share market.

Chart Time Frames 

A Chart can be a Daily Chart, Weekly charts as per the time frames. This Different Time frames are us for Different trading  styles and techniques of day trading.

The Various  time frames  of the chart are as below

 (A) Daily Chart  (B) Weekly Chart (C) Monthly chart (D) Quarterly chart (E) Six month chart ( F) Yearly chart (G) One Minute charts  (H) Five Minute charts (I) 15 minutes chart (J) 60 minute chart

Also Read: What are the best indicators for swing trading?

Type of charts in Stock Market

There are several type of charts but here we will discuss the popular charts which will help us for Intraday Trading in NSE market .

1) Candlesticks Charts 

2) Bar charts

3) Head and shoulders Charts

Candlesticks Chart:  

Candlesticks charts is  way of showing information about how price is moving for  a particular stock in NSE market. Candles in a charts refer to the information for a specific time. For examle,  in daily chart each candle represents one day and that will show the  open, close, high, and low price for that given day. This chart will give information about demand and supply equation for the day trader. In the below example a Red colour Candle is Bearish while the Green color candle is bullish candle.

Candle stick charts shows  the actual “market sentiment”: whether the bears or bulls were in control, and how far traders managed to push price in both directions.

Image of Candlesticks Chart

Bar chart:

Bar Chart is one of the basic tools of technical analysis while doing day trading.

In a Bar Chart the open, close, high, and low prices of stocks or other financial instruments are embedded in bars which are plotted as a series of prices over a specific time period. Bar charts are often referred to as OHLC charts (open-high-low-close charts) to distinguish these charts from more traditional bar charts used to depict other types of data. Bar charts allows traders to see patterns more easily. In other words, each bar is actually just a set of 4 prices for a given day, or some other time period, that is connected by a bar in a specific way—hence, it is often referred to as a price bar.

A price bar shows the opening price of the financial instrument, which is the price at the beginning of the time period, as a left horizontal line, and the closing price, which is the last price for the period, as a right horizontal line. These horizontal lines are also called tick marks. The high price is represented by the top of the bar and the low price is depicted by the bottom of the bar.

Image of Bar Chart

Head and shoulders Chart:

The ups and downs pattern  in a share market tells a very specific story about the battle being waged between bulls and bears.

In technical analysis, a head and shoulders pattern describes a specific chart formation that predicts a bullish-to-bearish trend reversal.

After a long bullish trends in a specific stock, the price of the stock can rise to a peak and then come down. The price of the stock rises again to form a second high substantially which is above the initial peak and then the price of the stock declines. The price of the stock rises again for third time at the same level where the  first rise  had made the high and again the stock starts falling  from that level. Once you see this type of movement in the stock, you can predict that a trend reversal is about to happen and short sell the stock at this levels to gain money.

Head and shoulders Top : Bearish chart from the top stock will go down.

Head and shoulders Bottom Bullish pattern chart

Head and shoulders Bottom: Bullish pattern chart The stock will go up from the down price.

Head and shoulders Bottom Bullish pattern chart

There are lot of  other  charts patterns like Double Top Reversal, Double Bottom Reversal, Falling Wedge, Rising Wedge, Rounding Bottom. Etc which a trader should learned to master the day trading in NSE market.

Here we cover the basics about daily chart for day traders. Reading Daily chart will surely help you maximize your gains for  Intraday Trading. Daily chart will give the signal what  time to buy, at  what price to buy and finally  when time to sell or square off the position.

If you are thinking for free intraday tips A1 Intraday Tips is always there to help you to give you maximum profit by minimum risk by providing best intraday trading tips. For Free Trial you can register here to avail our Free Intraday Tips for 2 days. You can also download A1 Intraday Tips mobile app here. For more information call us at 07506090788 / 07600797534.

Also Read: What is a good RSI number?