Thursday, August 12, 2010

Best Intraday Tips

Intraday (Tips) Trading is a very important aspect of trading in Stocks and Commodities Markets. People often tend to ignore intraday trading and also there is a general myth that no one can money by trading intraday in the financial markets. Contrary to this belief of the mass, I feel a lot of money can be made by Intraday trading and it can be much more than forms of trading.

Intraday / Tips trading also known as day trading is a style of trading in which a trader buy/sell a security and close the position the very same day with no overnight risk. The only risk which he has is the risk of intraday movement of stock price. Due to the very same reason the there is a very limited risk in intraday trades as compared to Positional / BTST trades, as the later have the overnight risk due to which you can lose a major part of your capital even if you have a extremely high or low market opening the very next day. In a sense you are protected against the gap up and gap down openings of the markets rather they might provide you as a buying or selling opportunity

Intraday traders have a freedom to go short on a stock by any quantity which is not there for positional traders and also small traders. As you are not allowed to carry short position in Cash Segment for overnight trading you have to trade in Futures for the same if you want to go short on a stock for overnight trading. In futures trading the Lot size for trades is fixed and thus it creates a restriction on the trader to trade that minimum quantity, which may not be possible for many small traders. Also many stocks are not available for futures trading so you cannot take short positions in such stocks. On the other hand while trading in Intraday segment you can take short or long position on almost all the stocks and that too in any quantity. So it is more convenient and easy for small traders as well

Intraday Tips /traders do not require much capital as the brokers often provide a high leverage for intraday trading , so the trader just needs to put margin money from his side and rest is being paid by broker for taking a positions. The limit / leverage varies from broker to broker, it can be 5x(10 times) to 25x, depending upon you relation with the broker and your credibility. But this leverage is often being misused by most of the intraday traders in the Indian Stock Market and commodities markets. People indulge into the act of overtrading with managing the risk and thus end up losing a major chunk of their capital in a single day or trade. For ex. You take a position of 2.5 lacs on stock even have a margin money of Rs.10,000 in you account, if the stock goes against you trade by 3% you lose Rs. 7,500 which is 75% of you original capital. This way it can be risky but this risk can be managed by deciding the trading size and keeping stoploss for every trade.

Intraday Tips / trading sometimes become very difficult for amateurs as well as the expert traders when the market is sideways , or if the trader is not able take a right decision. In such circumstances the trader starts losing huge amount of money in a very small time, which is bad for his financial health.

Thus one should chose for a right partner to get the best Indian Stock Market Intraday Tips , which are not only the best but also accurate , reliable, time tested and fruitful. You have many options available in the markets but the Intraday Stock and Nifty Tips from BullRider and also the Commodity Tips from them are the best in the Markets and have been the reason behind the success of thousands of Indian traders globally. For the same reason you should stick to the expert in Intraday trading tips and go for their Paid services so that you can really make money from trading Intraday with a very low risk and high return

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