The right online share trading strategies are essential for success in intraday trading for beginners. Developing an understanding of how intraday trading actually works is only the first step. You must also learn when and how to enter and exit a trade based on changing market conditions. 

Here are some intraday trading tips to fire up your first trades.

Intraday trading for beginners: Tips to get you started

Go liquid: Large-cap and index-based stocks tend to see higher intraday trading volumes. These stocks offer more liquidity as more players go for them. This makes it easier for an intraday trader to exit open positions before the close of trading. So, you might want to add a couple of liquid shares to your trading mix. In contrast, the shares of mid-cap or small-cap companies are less liquid. You may have to hold on to them longer owing to their low trading volumes.

Plan ahead: Carefully consider exactly when to enter and exit a trade. Outlining a clear plan of action will give you a trading objective. It will also help you keep emotions and bias at bay. For instance, traders often set a target price for a particular trade. Once the stock price hits this level, the position closes automatically and fetches the expected returns.

Use stop loss: Stock prices rise and fall constantly. But the danger lurks therein: you could meet hefty losses in case of excessive fluctuations. However, you can restrict your losses during online share trading by implementing a stop loss on each order. Suppose the stock price falls below the stop-loss limit. The trade will be closed automatically without you having to weigh in again.

Do not mistake trading for investing: An investor may hold on to a share for anywhere from a few days to several years. Their goal is to make long-term gains. An intraday trader, however, aims to profit from share price fluctuations within a single trading day.

Shortlist key stocks: You can buy hundreds of stocks at any given time. But experts suggest that you limit your pool. Shortlist eight to 10 stocks and monitor them on a regular basis. Look for stocks across different sectors—this will safeguard you even if some stocks plummet under unfavourable market conditions.

Move with the market: Even seasoned traders struggle to predict market movements. Despite the bullish trend of some indicators, the market may react differently. If the market does move against you, close open trades quickly to cut losses. It is advisable to use trading indicators and charts to assess market trends on a daily basis.

Ration your trading capital: Experts say you should trade with an amount you can afford to lose. So, you would not lose your entire capital even if the market dips. Do not to invest more than 2% of your trading capital on a single stock.

Close all open positions: In intraday trading, all open positions get closed automatically at the end of the trading day. You may not achieve your trading targets if this happens. And if the prices have moved against you, you could face big losses.

Summing up

Knowledge is the greatest weapon for an intraday trader. So, beginners must devote time to do their due diligence on stocks, sectors, and the overall market. A trading account with a brokerage firm like Kotak Securities can provide you with a range of research materials and live updates. Once you have the right intraday trading plan in place, you are ready to trade.