How to do Intraday Trading?
Step 1: Set Up a Trading and Demat Account
To begin, you will require a Trading and Demat Account. It can be opened through a SEBI-recognised broker.
Step 2: Get Thorough Knowledge about the Stock Market
To begin, you should learn a lot about the stock market and its features, its rules, and the different types of financial instruments that can be used for intraday investing.
Step 3: Select a SEBI-Registered Broker
Check the SEBI website to ensure that the brokerage you choose is registered. SEBI is in charge of regulating and supervising the Indian stock market.
Step 4: KYC and Authentication
Submit the Know Your Customer formalities, which include providing identification and address verification. Identity cards like Adhaar, Pan or voter ID, etc., can be used for KYC authentication.
Step 5: Develop a Trading Strategy for Yourself
Create a detailed trading plan outlining your objectives, your tolerance for risk, and the amount of funds that you are ready to invest.
Step 6: Comparing Technical Analysis to Fundamental Analysis
Make trading decisions using technical evaluation tools and indicators. Evaluate the basic elements of equities, such as reports on earnings, events in the news, and economic data, which may influence your transactions.
Step 7: Size of Positions
Consider your risk threshold and the proximity to the stop-loss amounts when calculating the extent of your positions. Avoid excessive leverage.
Step 8: Begin with a Small Amount
If you are completely novice to intraday trading, start with a modest amount of shares or contracts. It is essential to keep your emotions in check.