If index is in
positive from yesterday and the share you are holding is in
minus then it should be cut and if intraday trend of index is
in buy then one should buy a stock in which is in plus.
If index is in
minus then one should look to short stocks which are minus and
not stocks which are in plus.
It is not
necessary that a stock which is weak today during intraday
trading might be weak tomorrow also, simultaneously if a stock
is strong today might not be strong tomorrow
If US Markets
have gone up overnight, the markets here in all probability
will open strong, so one should be quite careful when buying
stocks as the general psychology of public is to buy when good
news is there.
contrarians is very important while trading intraday.
Stop loss is a
must while trading intraday.
Always trade in
very liquid stocks i.e. which have very high volume because as
entry and exit can be very fast in such stocks.
Do paper trading
before you actually start trading so that when you start
making paper profits, then shift to actual trading.
Keep your volume
constant e.g.: if you trade in five lots of nifty
future then trade in five lots only. This position can be
increased only when you are satisfied with your trading for a
month. It should not be that one day you buy five lots and
next day you trade in ten lots and third day you get a loss
and stop trading for two days.
Fear and Greed
are at maximum levels while trading intraday so always have
less position when you are new to intraday trading as
otherwise you will be mostly under tension.