Intraday trading is a very tough task. You have to know a lot about the market and only then you will be able to fine-tune the trading method. People who have strong knowledge about the market do perfectly well since they know the proper way to manage the trades. But most of the stock traders in Hong Kong are using long term trading strategy. People who have years of experience are trading the stocks as an intraday trader. Today we will give you some unique tips that will allow you to trade the major stocks like an intraday trader.
Study the price movement
You must study the price movement from scratch. People jump into the stock trading business without knowing anything. They focus on the essential elements of trading and try to create a unique trading strategy so that they can earn a decent amount of money. But by following such an approach no one can become a professional stock trader. You have studied the price movement and see what impacts the price. Once you know about the price volatility, taking the trades will be an easy task. Instead of using your real account, you can rely on the demo account in the learning stage. It will help you to improve your skills without losing any real money. Start with the demo account as it is the best possible way to become an intraday stock trader.
Learn the price action setup
You have to learn about the price action trading strategy to buy stocks at the best price. Those who rely on indicator based trading strategy loses money most of the time. To protect your trading capital, you have to focus on the long term goals and take the trades with proper discipline. Once you become skilled at analyzing the price dynamics, you will slowly learn to take the trades in a disciplined way. It will help you to protect the trading capital and you will slowly become good at trading. Being a price action trader, you might not use a strategic approach but this will cause a big loss. For the protection of the capital, you should never risk more than 2-3 % of your account balance.
Learn advance money management
Since you will be taking the trades in the shorter time frame, you have to learn about the advanced trade management technique. Learning about the advanced trade management technique is a very tough task. If you focus on the essential factors of the market, you will slowly learn to take the trades in a very professional way. It will help to protect the trading capital, and you will become a great trader. Being a new trader, you should not risk more than 1% of the account balance at the initial stage. If you risk more than 1% of your account balance, it will be tough to cover up the losses.
Stick to the major trend
Since you will be taking the trades daily, you should stick to the major trend. Trend trading strategy is the best way to protect the capital. People who follow counter-trend trading techniques can’t do well in the stock trading business. Even if you trade in the weekly chart, you must learn to take the trades with the major trend. Once you start taking the trades with the major trend, it will become an easy task to improve your skills. Focus on the essential factors of the market and you can become great at trading.
Becoming a top trader is not an easy task. If you follow a strategic approach, you will become good at trading. Follow the tips of this article and you will be able to execute high-quality trades with an extreme level of precision. Never become a greedy trader as it will impose a great level of risk on your career.