How to Become Millionaire by Investing In Stock Market?

How to Become Millionaire by Investing In Stock Market?

Everyone has its own trading and investment style in stock market but they all have the common question in their mind "How to Become Millionaire by Investing In Stock Market?" In fact it is tough to find out a quick fix trading and investment style in stock market but some Fundas are almost common among all millionaire investors/traders. In present post I have tried to express some of the most discussed trading ideas and  investment ideas in order to explore "How to Become Millionaire by Investing In Stock Market"?

How to Become Millionaire by Investing In Stock Market?

"Ever dreamed of becoming a millionaire? It may seem like a lofty goal, but with the right strategy and tools, the stock market could be your staircase to financial freedom. Investing in stocks isn't just about quick wins or short-term trading; it's about understanding the market, recognizing potential, and most importantly, having the patience to watch your investments grow over time. In this guide, we will walk you through the steps on 'How to Become a Millionaire by Investing in the Stock Market,' sharing the secrets behind successful investment strategies and introducing you to the art of spotting the future 'multibaggers.' So strap in and get ready, because your journey to millionaire status begins now!"

1. Trading with Trend: Bet on Winning Horse

As you have just initiated your steps in stock market with plenty of dreams, you should make sure to focus on Buzzing stocks i.e. stay tune with trend as it is said "Trend is friend". At the same time we suggest you to do your pwn research, look into their price patterns and focus on stocks which are already in momentum as you plan to go with them until they reach new heights instead of focusing on stocks hitting new lows. 

2. "Buy" and "Short Sell" are the Two Aspects of the Stock Market

Some of the trader think they need a bull market to get rich in stock market but this is only a half story and  it isn't the case. Don't hesitate short selling in trend is downside, you should not have to hold on to a stock for a long time to earn a profit, but look at the success story of some day-traders have; they are the epitome of earning off of short selling. Nothing wrong with short selling as you are in stock market to earn money only, remember if you are adhere to the old principles then you will still be found searching somewhere the term "How to Become Millionaire by Investing In Stock Market?"  on Google throughout your life like today you did it.

3. Book Your Losses Quickly

If you want to to Become Millionaire in Stock Market, take your ego completely out of the situation. In case you face a set back, book your losses and move on fast. Do not dwell on your stupid decision,  instead look to the future opportunity. You are going to fail, so mindset yourself and just be ready to move on another opportunities.

4. Don't Hesitate to Book Partial or Entire Profit

The interesting thing about your un-booked profit is that they aren't really profit until you book them. you should not hesitate to book partial profits or take entire profit too quickly. The Stock market changes fast there is nothing wrong in getting out when you feel it is right time to book the profits that you have earned.

5. Taking help of  New Technologies 

Nothing in the world is changing fast than technologies,  so be the change if you want to be Millionaire in Stock Market. Now is the time to be associated with modern sophisticated technologies. There are the business of the future, Knock new technologies and business models and be willing to stay ahead of the time as you look to your investments in future.

6. Prefer Liquid Stocks

If you really want to earn some serious money in the stock market, this is good to stick to liquid and highly traded stocks. Try to abstain yourself from illiquid stocks as these are the stocks which make big promises but followed by some downtrend.

7. Don't trust anyone in the Stock Market, Do your own research

In the trading world of stock market, talk is cheap. Don't listen to or trust promises or hype  at all, look only the way stocks are behaving, you should do your own research by looking into how the stock you are tracking is performing and what action it is really taking in the market. This is the way you can understand what to expect from the stock you are tracking in the future.

8. Diversify but avoid too much of it;

Everyone in stock market suggest not to put all of your eggs in one basket even I believe the same but too much diversification is not the way to be Millionaire through Investing in Stock Market.  I have my personal experience is too much diversified investment creates obstacle in booking profit as we gain high in percentage return but few in monetary return. One should typically keep one to two stocks at a time and should not use more than 30% of one's assets in investments, that's it.

9. Don't Leverage;

Spread your legs according to the blanket, So many people talk about Derivatives/Options/Future trading by using leverage but this is not the way to be Millionaire in Stock Market. One must avoid leveraging and doing margin trading in the stock market unless it becomes inevitable to do so.

10. You Don't Need to give bottom finishing nor to Sell at the Top

No one in the stock market can buy at the bottom and sell at the top, so many of new traders having dream  to be Millionaire in Stock Market are focused on the old adage that they need to buy right at the bottom and sell right at the top. Though it would be nice if you could do the same but you just need to focus on the meet of the move, not necessarily the top and bottom. Instead you should get in during the middle and still make some major profits.

11. Learn to Identify Multibagger Stocks: Identifying multibagger stocks is critical for becoming a millionaire in the stock market for a simple reason: these stocks offer exponential returns. Unlike blue-chip companies that offer steady but often slower growth, small-cap stocks can multiply in value within a relatively short time, sometimes even double, triple, or more. This potential for rapid growth can greatly accelerate wealth accumulation, making it possible for savvy investors to reach the millionaire status much quicker. That said, the risks are also higher, so careful research, due diligence, and a balanced portfolio are key to suceed in this high-reward game. Don't miss the latest list of Top 10 Small Cap Stocks to buy now for multibagger return

I know you might be missing some of the important trading ideas in above post and if it is; it is due to my commitment to keep this article as short as possible. Please do post your valuable comments and suggestions as to present post "How to Become Millionaire by Investing In Stock Market?"

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Mastering Intraday Trading: Top Strategies for the Indian Stock Market

Mastering Intraday Trading: Top Strategies for the Indian Stock Market

Explore the top strategies for mastering intraday trading in the Indian stock market. Learn the ins and outs of successful intraday trading, including technical analysis, risk management, and trading psychology.

 Intraday trading can be an exciting and profitable venture if you understand the strategies and techniques that work best in the Indian stock market. With the right approach, traders can capitalize on short-term market fluctuations to generate impressive returns. In this post, we'll cover the top strategies for mastering intraday trading, including technical analysis, risk management, and trading psychology. Let's dive in and get started on the road to intraday trading success!

Understanding Intraday Trading and the Indian Stock Market

Before we dive into the top strategies for mastering intraday trading, it's essential to understand the basics of intraday trading and get an overview of the Indian stock market.

A. Intraday Trading Basics

Intraday trading, also known as day trading, involves buying and selling financial instruments like stocks, currencies, or commodities within the same trading day. The objective is to capitalize on small price movements and close all positions before the market closes, avoiding overnight risks. Here are some key aspects of intraday trading:

i. Leverage: Intraday traders often use leverage, which allows them to trade with more money than they have in their accounts. This can amplify profits but also losses, making risk management even more critical.

ii. Short Selling: Unlike long-term investors, intraday traders can profit from falling prices by short selling, which involves borrowing shares and selling them, hoping to buy them back later at a lower price and return them to the lender.

iii. Timeframes: Intraday traders focus on shorter timeframes, analyzing charts with time intervals ranging from minutes to hours. This allows them to identify short-term trends and price patterns to make quick decisions.

iv. High Liquidity: Intraday traders prioritize highly liquid stocks that can be easily bought and sold in large volumes without affecting their prices significantly. This ensures smooth trade execution and minimizes the impact of price slippage.

B. Overview of the Indian Stock Market

The Indian stock market is one of the fastest-growing markets globally, offering a plethora of opportunities for intraday traders. The two main stock exchanges in India are the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE), with thousands of companies listed across various sectors. Some of the essential points to know about the Indian stock market include:

i. Market Hours: The Indian stock market operates from Monday to Friday, with trading hours from 9:15 AM to 3:30 PM IST. Intraday traders should be mindful of these timings and any changes due to holidays or special circumstances.

ii. Indices: Nifty 50 and Sensex are the primary indices representing the NSE and BSE, respectively. These indices comprise the top 50 and 30 companies by market capitalization and are widely regarded as barometers of the Indian stock market's overall performance.

iii. Market Regulator: The Securities and Exchange Board of India (SEBI) is the regulatory body overseeing the Indian stock market, responsible for ensuring a fair and transparent trading environment.

Now that we have a better understanding of intraday trading and the Indian stock market let's explore the top strategies for mastering intraday trading.

Mastering Intraday Trading: Top Strategies for the Indian Stock Market

1.    Technical Analysis: The Backbone of Intraday Trading

Intraday trading relies heavily on technical analysis, which involves studying historical price patterns and trends to predict future price movements. Here are some essential technical analysis tools and indicators that can help you make informed trading decisions:

a. Support and Resistance Levels: These are price points where a stock's price tends to change direction, either bouncing back (support) or falling (resistance). Identifying these levels can help you determine entry and exit points.

b. Moving Averages: These are calculations that smooth out price data, providing a clearer view of the stock's trend. The two most common types are Simple Moving Averages (SMA) and Exponential Moving Averages (EMA). Use these to spot trend reversals and confirm market direction.

c. Relative Strength Index (RSI): This is a momentum indicator that compares the magnitude of recent gains and losses to determine whether a stock is overbought or oversold. A value above 70 indicates overbought conditions, while a value below 30 suggests oversold conditions.

d. Volume Analysis: Analyzing trading volume can help you gauge market sentiment and identify potential breakouts or reversals. High volume during price increases indicates strong buying interest, while high volume during price drops signals strong selling pressure.

2.    Risk Management: Protecting Your Capital

Effective risk management is crucial for intraday trading success. Here are some strategies to help you minimize losses and protect your capital:

a. Stop-Loss Orders: These are orders placed with a broker to sell a security when it reaches a specific price, effectively limiting your loss on a trade. Always set a stop-loss order to protect your investment.

b. Position Sizing: Avoid risking more than a small percentage of your trading capital on any single trade. A common rule of thumb is to risk no more than 1-2% of your account on each trade.

c. Diversification: Spread your risk by trading a variety of stocks in different sectors. This can help reduce the impact of a single stock's poor performance on your overall portfolio.

3.    Trading Psychology: Maintaining Discipline and Emotional Control

Intraday trading can be emotionally taxing, and maintaining discipline is essential for success. Keep these tips in mind to stay in control:

a. Create a Trading Plan: Before entering a trade, develop a clear plan that includes entry and exit points, as well as risk management strategies. Stick to your plan and avoid making impulsive decisions.

b. Manage Your Emotions: Stay calm and focused, avoiding impulsive actions driven by fear or greed. Recognize when your emotions are getting the better of you and take a break if needed.

c. Learn from Your Mistakes: Evaluate your trades, both successful and unsuccessful, to identify areas for improvement. Treat every trade as a learning opportunity.

4.    Developing a Robust Trading System and Continuously Improving

A well-structured and effective trading system is essential for intraday trading success. Here's how you can develop and continuously improve your trading system:

A. Choose Your Trading Style

There are several intraday trading styles, such as scalping, momentum trading, and breakout trading, each with its unique approach and risk profile. Research and choose a trading style that aligns with your personality, risk tolerance, and time commitment.

B. Select the Right Tools and Platforms

Choose a reliable and user-friendly trading platform that offers advanced charting tools, real-time data, and fast order execution. Moreover, ensure that your broker provides competitive spreads, low commissions, and excellent customer support.

C. Backtest and Optimize Your Strategy

Before implementing your trading strategy in the live market, backtest it using historical data to assess its performance and identify potential areas for improvement. Regularly review your trading system and make necessary adjustments to adapt to changing market conditions.

D. Keep a Trading Journal

Maintain a trading journal to document your trades, including entry and exit points, reasons for taking the trade, and any observations or lessons learned. Regularly reviewing your journal will help you identify patterns in your trading behavior, allowing you to address weaknesses and capitalize on strengths.

E. Stay Informed and Updated

Stay up-to-date with the latest market news, economic releases, and policy changes that may impact your trading. Keep an eye on global events and their potential effects on the Indian stock market. A well-informed trader can adapt to changing market dynamics and make better decisions.

With these tips in mind, you'll be well-equipped to develop a robust trading system and continuously refine it for optimal performance. Now, let's wrap up with some final thoughts on mastering intraday trading.

In conclusion, mastering intraday trading in the Indian stock market involves a multifaceted approach that combines a strong foundation in trading basics, technical analysis, risk management, trading psychology, and continuous improvement of your trading system. By incorporating these elements into your trading routine, you can make more informed decisions, manage your risks effectively, and adapt to the ever-changing market conditions. As you progress in your intraday trading journey, remember that learning never stops – embrace new knowledge, stay updated on market trends, and refine your strategies to stay ahead of the curve. By maintaining a disciplined and persistent approach, you can unlock the full potential of intraday trading and achieve long-term success in the Indian stock market.

Explore the world of intraday trading in India with our comprehensive guide, designed to help you navigate the stock market and uncover profitable opportunities. From understanding technical analysis tools like moving averages and RSI to developing risk management techniques and a disciplined trading mindset, our blog will equip you with the skills needed for a successful day trading career. Stay updated on the latest market news, NSE and BSE trends, and IPO analysis, as well as expert insights on mutual funds, ETFs, and tax-saving investments. Join our growing community of traders and investors to stay ahead in the competitive world of the Indian stock market.

Intraday trading tips: How to fix 'Stop Loss' and 'Target price'

How to set Stop loss and Target price in Intraday Trading - Technical view

The art of 'Buying', 'Selling', setting 'Target' and 'Stop Loss'

How to fix 'Target' and 'Stop Loss'

Tags: Intraday, Trading, Stock, target, Stop-Loss,

What is Stop Loss order? 

A stop loss order is an order placed with a broker to buy or sell once the stock reaches a certain price. A stop-loss is designed to limit the loss of an investor to a security position. 

Intraday trading strategy: How to fix 'Target' and 'Stop Loss'

Most of the day traders prefer to play intraday to earn quick money but at the end of the day only few of them succeed to earn. In fact intraday trading is an art of prompt response and experiece; so for a newbies it is highly risky. Though it requires good knowledge of "Technical Analysis" and "Trend Analysis" yet we have tried our best to make it easy to understand the art of intraday. In current post we will learn ho to fix technical stop loss and target price in intraday stock trading.
It's all about 'Opening Price', 'Day high', 'Day Low', 'Stop-Loss'/SL, Actual Trading Price-ATP, 'Last Trading Price'-LTP etc. Please Stick to following simple "Trading-rules" where you can understand "When to Buy" and "When to Sell";

"When to Buy" - "When to Sell";

1. When open price and day high price are almost same, sell  it with SL of open/high price.

2. Buy when price crosses day open price keep Stop Loss at today's low.

3. Sell if prices drops below previous day closing price, Keep Stop Loss at day high.

4. Buy few time after open when price crosses day high, Keep Stop Loss at day's low or immediately below your buying price.

5. Buy if prices crosses and sustain above ATP, Stop Loss will be it's day low.

6. Sell if price breaches and sustain below ATP with Stop Loss of day high.

7. Buy if open and low are same, keep Stop Loss at open price.

8. Buy above previous day high, SL previous day low or today's ATP.

9. Sell below previous day low, Stop Loss today high or ATP.

10. Sell below day's low keep  Stop Loss at ATP.

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• what is stop loss in share market intraday trading.
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'Paper Stocks' hope for Strongest Q4

Indian stock market has witnessed a sharp rally in paper maker stocks. There is an exception of posting strong Q4 number by these company. Fourth quarter usually comes with strong numbers for paper making companies as there is huge demand of paper and paper products by the educational institutions; new curriculum get published, start of new semester and afresh demand of notebooks are some of the reasons behind it.

Declining price of wood pulp also helping these companies. Most of the paper stocks are still trading at low valuation. Following 'Paper stocks' should be on your radar ahead of Q4 result;

Hot & Buzzing 'Paper Stocks' 

1. West Coast Paper Mills CMP 80.95
2. JK Paper CMP 46.60
3. Tamil Nadu Newsprint & Papers CMP 232.50
4. International Paper APPM CMP 309.50
5. Ballarpur Industries Ltd CMP 15.90
6. Star Paper Mills CMP 37.65

SP Tulsian as quoted in ET, is of the opinion that there is no fundamental reason for recent rally in 'paper stocks' and this is due to sector churning as dye, sugar and tea companies have already rallied. At the same time he said in past 40 years paper industries have never rewarded its investors,

As per above analysis I am of the opinion that 'Paper stocks' may be good for short term trading purpose but for long term investment in paper industries investors must examine its fundamentals and previous track record.

Searches related to 'Paper Stocks';

JK Paper multibagger stocks, ruchira papers share price, Bilt paper, Jk paper share price, ITC paper, International paper stock price, West coast paper mills, Star paper share price, Century pulp and paper.Agio Paper & Industries Stock/Share prices, Agio Paper & Industries Live Orient Paper and Industries Stock/Share prices, Orient Paper and Industries.

03.03.2016 (Thursday) Intraday Call

03.03.2016 (Thursday) Intraday Call

Buy;
 Ambuja Cement @195 for tgt of 199...201...202.5, SL 191.80
 Just Dial @₹560 for a target of 570...574 SL 552

Sell
ICICI Bank below 220 tgt 1 216 t2 214 t3 210 SL 226
Ashok Leyland below 94 for target of 93...92.50...92 SL 95

How to Play Dividend Game in NMDC

NMDC: A high dividend paying company

NMDC Ltd | NSE: NMDC - 16-Feb 3:29 PM | CMP 89.60 INR 

Searches related to NMDC: NMDC Share dividend, nmdc share dividend history, nmdc dividend 2016, nmdc dividend payout date, nmdc dividend record date 2016, nmdc dividend 2016, nmdc dividend economic times, nmdc dividend moneycontrol, nmdc dividend yield, NMDC ex date of divided. NMDC share price NSE BSE INDIA. Buzzing multibagger mid cap stock. 

__________________________________________________________________________

National Mineral Development Corporation

The NMDC Limited is a state-controlled Mining company having headquarter in Hyderabad. It is mineral producer of the Government of India and is under administrative control of the Ministry of Steel, Government of India. NMDC's Market cap is 354.6B, it is trading at P/E ratio of 5.57. The best part is it's one of the a high dividend paying companies in Indian stock market with almost 9.54% Dividend yield ratio.

National Mineral Development Corporation

Key ratios;

• MARKET CAP (RS CR): 35,424.74
• P/E: 9.27
• BOOK VALUE (RS): 81.55
• DIV (%): 855.00%
• MARKET LOT: 1
• INDUSTRY P/E: 10.90
• EPS (TTM): 9.64
• P/C: 7.19
• PRICE/BOOK: 1.10
• DIV YIELD.(%): 9.57%
• FACE VALUE (RS): 1.00

source: moneycontrol

The buzz: NMDC has declared first interim dividend at the rate of Rs. 9.50 per equity share of face value of Rs. 1/- each for the financial year 2015-16. Record date of interim dividend is 25 feb, 2016. So a rally in stock till ex-dividend date is highly anticipated, which may lead it to at least 95 to 97. Divided yield at current price is around 11%.

Technical view on NMDC

• NMDC is trading with huge volume in both stock exchanges; NSE and BSE.
• Its multiple support is at 75.

How to Play Dividend Game in NMDC

If u r planning to make few bucks in very short period of time even in this volatile market, look at

NMDC@89

Strategy;

If you are an investor;

• you must have this debt free company in your portfolio. High dividend yield ratio around 9% is good annual return for an investor, so you willl cover your cost in almost 7 years.
• Company is having sufficient reserves and cash balances in its balance sheet which will help it to grow faster than any other metal stocks in Indian stock market.

If you are a trader;

Just buy now and get delivery in your demat account to avail dividend further you may sell it on 26th Feb, 2016 which is its ex divided date. Most probably this will go up to 95-97 till 25th feb, 2016 i.e. record date of divided.

What happens if gap down opening on 26 feb, 2016?

Yeah its quite possible to see a gap down on ex date. Supposing 5% gap down ll pull it to 97-5% =92.

Now what u hv gained is 9.50 div per shares+ 2 market price gain = rs. 11.50 per shares i.e. more than 12% in few days.

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Winning Strategy: How to Play Intraday Trading

Prima facie intraday looks to be the easiest and the most rewarding way to earn quick bucks in stock market. But the fact is just opposite; most of traders lose money in intraday gambling as they fail to respond very prompt and quickly to market volatility. So to be a successful day trader you should follow certain rules. When you play any other game like cricket or chess you have to adhere to the assigned rule, similarly Intraday traders have to follow some common trading rules. If you won't follow basic rules then intraday becomes that game where profit of one day is wiped out another day. In present post I have tried my best to figure out some of the important intraday trading tips based on my own experience, hope this will help you all.

How to earn money in intraday trading : Sure Shot Winning Strategy

Step by Step Intraday winning strategy

1. Do not Mix the terms 'Trading' and 'Investment'!

Before you start intraday trading the first thing is to think again and to decide whether you are a trader or an investor. Intraday, trading and investment are three different things you should not mix them together. No matter all these involve buying and selling scrips; the strategies involved are quite different. See how it works;

• Investment = 90% fundamentals + 10% technicals.
• Trading = 90% technicals + 10% fundamentals.
• Intraday = 90% technicals + 8% psychology + 2% fundamentals.

It is clear here; traders take into consideration technical data, while investors look at fundamentals of the company. Don't try mix the two term. 

2. Check trading volume to ensure liquidity!

Day traders must ensure that they are trading in highly liquid stocks as they have to square off their positions in stock at the end of every trading session. This is not an issue when you are trading in large-cap as most of the large caps being index-based stocks, are traded with satisfactory volume. Most of the stock experts say no to mid-cap and small-cap shares because such stocks are traded with thin volume. But you can still trade in mid-cap and small-cap shares and even in penny stocks; all you need to do is just satisfy yourself with good trading volume of that shares. If stocks you are trading in is not liquid you could end up holding shares with no buyers at the end of trading session.

3. Fix entry and exit point before you make a position!

Fix your entry level and target price before you make any position as the mind of the trader changes after he makes a position in a scrip. This behavior sometimes affect his judgement which force him to sell too early or not to sell at all even if the scrip moves adversely. In this way he loses the opportunity to enjoy full upside gain. So, next time when you do intraday trading first set entry and target price. Once you have done it, adhere to it and let the stocks to hit either your target or stop loss. For keeping target and stop loss you may refer to my previous post which depicts in easiest way "when to Buy" and "when to Sell".

4. Square off your position at the end of trading session!

The next mistake by intraday traders is; when they are having loss in their position they hold the shares for next trading sessions and by doing so they are compelled to pay high brokerage for delivery of that stocks. Further, shares bought for very intraday/short-term horizon may not be of good fundamentals, hence it makes no sense to hold it. No matter you gained or lost you must square off your positions  at the end of every trading session.

5. Honour your Stop Loss!

Stop loss limits your losses if the price of the stocks goes against your expectations. In simple words it is a trigger point for buying & selling of scrips you are holding, Stop Loss is triggered when the stock moves beyond a specified price limit. Suppose you buy 50 shares of Infosys at Rs 1140 each and you set a selling stop loss of Rs 1120 if for any reason the share of Infosys falls below Rs 1120, your Stop loss will be triggered and a selling order will be sent to your broker; in this way, your losses will be minimized to the extent of Rs 20 per share even if the share drops to Rs 1100. 
Read more at Investopedea.com >>> 

• How does a stop-loss order work?
• What is trigger order?

6. Book profits when it meets target!

It goes without saying, intraday trading game is profitable only when it is done in a pre-planned way. The two psychological issues associated with intraday trading are 'Fear' and 'Greed', in order to cope up with 'Fear' and 'Greed' pre-determined target and stop loss is suggested to the trader. Make sure booking profit when your targets are met; by doing so you will never repent for profits to have been booked. 

7. Don't trade in  more than 3-4 scrips at a time!

It's imperative to diversify your portfolio if you are trading/investing in stock market. For an investor diversity up to 10-12 scrips is suggested but when it comes to a trader, limit yourself to just 3-4 stocks. However you may have up to 10 to 15 scrips in your watchlist which you track regularly. As a trader you need to track stock movements closely and continuously, so trading in more than 3 to 4 scrips at one go is not suggested to a day trader. 

8. Don't hesitate to research thoroughly!

A trader need to do more research work than that of an investor, do not hesitate to research thoroughly on stocks in your watchlist. Update yourself with all forthcoming news & events such as shareholding patterns, bonus issue, dividends, stock splits, result dates & analysis, mergers, credit rating, expert views etc. of the stocks. There are certain websites & mobile apps which provide their free services as to stock market where you can find high, low and closing price of stocks as well as their resistance and support levels. Some of the popular site are;

• Moneycontrol.com
• Investing.com
• Google.com/finance

9. Trend is friend: Don't fight with it!

As a trader you should not fight with market trends. Despite all technical factors the scrip you are trading in, may not trade as per your expectation if market does not support it. A stock might be bullish on chart but to trade accordingly it always need a favorable market trend, remember market spares no one. If market trend is not as per your calculations better to go with trends or not to trade that day. If you don't follow it is more likely you will end up with a losing session.

10. Small is beautiful!

While intraday trading can fetch a stupendous returns in a single trading session, it may also bring huge loss to a trader if target is not set rationally, Always go with small target to avoid losses. As an intraday trader you get an opportunity of leveraging your trade, you can earn handsome amount even if your scrips go up by 1% or 2%. As per 'Fear' and 'Greed' psychology there is higher chance of loss if you set a target higher than 3%. So, small is beautiful.

11. Learn some technicals!

As we have already seen how intraday trading is a game of 90% technicals, you should learn at least some basics of technical analysis. In most of the cases technical analysis does work. If it were all about fundamental, shares should have fluctuated only four times a year i.e. on its quarterly result day but why they fluctuate hundred times a day? There is number of books on 'Technical analysis' available online for free or at a very attractive price, take help from them.

12. Don't let your emotions control you!

For a trader emotional intelligence (EQ) is much more significance than one's intelligence (IQ). Emotions are like a watchman who filters out your decisions, trading is equally interlinked with human emotions. So you should manage your emotions and temperament to be a successful trader. It totally depends upon one’s psychological makeup; some people are patient while some are impatient similarly fearful, fearless, slow decision maker, prompt decision maker etc. selecting the best suited trading style would lead you to a sustained success not only in intraday trading but also in investing.

13. Don’t listen too much to experts or advisers!

No one can guarantee for 100% success in stock market; market spares on one. Better try to develop your own trading style rather than listening too much of experts or advisers on TV and websites. If you depend highly on experts opinion or any paid service you will ignore your own trading skills. Here you should L-E-A-R-N first and then remove 'L', in long run you will surely E-A-R-N. The only way to make money in stock market is hard work and self study, nothing can substitute self acquired knowledge & experience. One should listen to all but should apply own trading style. Everyone has to write his own paper in the exam of stock market. 

14. Keep your trading costs low!

Try keep your trading costs as low as possible. If you are paying high brokerage you will not be able to set small targets. When you open your demat account ask your broker regarding brokerage rate, you can also search online to ensure attractive brokerage plan. It's a simple economics funda; other things remaining same, the lower the cost is the higher profit will be. Most of the brokers provide flat fees of Rs. 20/- per trade which reduce almost 90% of brokerage costs.


Though I tried to explain all important aspects of day trading tips yet I believe there are thousands to be discussed, everyone has his own trading style depending on his experience. No matter what strategies you are applying the result should be in profit only. Please do share your ideas/suggestions on present post "How to Play Intraday Trading Game".

Most frequent questions; 

How to do intraday trading, how to do intraday stock trading tips for sure win, how to earn intraday trading tips, Free Intra day tips in Indian Stock market how to do intraday trading in 10,000, how to profit intraday trading in commodity, how to play intra-day trading in game,  how to earn intraday trading in Indian stock market, how to make 1 lakh in intraday trading in nse, bse. Intra day tips. how to choose stocks for intra day. How to Become Millionaire by playing intraday.

How to trade with Moving Averages

'Simple Moving Average' -(SMA)

'Simple Moving Average' is a simple arithmetic moving average which is calculated by closing price of the stock. While calculating SMA for desired period, day closing price of the stock for such period is added together, then it is divided by  a number of trading sessions. It is also known as 'Daily Moving Average' (DMA). Most of the day traders use 5 DMA to 30 DMA for very short term trading while 50 DMA to 200 DMA is used by medium to long term trading/investment ideas.

'Exponential Moving Average' (EMA)

'Exponential Moving Average' is a type of moving average which is almost similar to a 'Simple Moving Average (SMA), but more weight is given to the latest trading prices. As this moving average is based on weighted, EMA is also known as Exponentially Weighted Moving Average (EWMA) or 'Daily Exponential Moving Average' (DEMA).  'Exponential Moving Average' reacts faster to recent price changes than that of  'Simple Moving Average' (SMA/DMA). Most of the day traders use 10 DEMA to 20 DEMA as it is the most popular short-term averages, while the 50 DEMA and 200 DEMA are used to measure long-term trends. Read more: Exponential Moving Average (EMA) Definition

Short term and Long term Moving Averages

Traders often examine short term moving average on a trading chart because it responds quick movement of stocks to a new trend. While investors go with a long term moving average because they think it reduces errors and deliver accurate trend on chart.

Using two moving averages on chart

Most of the smart traders use both the moving averages simultaneously, If you want to see how it works, simply wait for a shorter moving average i.e. 5-DMA to cross a longer moving average i.e. 20-DMA. By doing so you let weekly moving average (5-DMA) to cross monthly moving average (20-DMA) on chart. 

• How to Trade with Moving Averages

Trading Tips; One should Buy if a shorter moving average crosses the longer one in upside movement and should Sell if the shorter moving average crosses the longer moving average in downside movement.

In above figure black curve denotes longer moving average(20-DMA)  and red curve shorter moving average  (5-DMA), you may see how the stock behaves after 5-DMA crosses 20-DMA at arrow mark. This arrow mark in above figure is a crucial buy/sell crossovers.

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