How to take Intraday Calls

Here we are elaborating a proper way to take our intraday calls.

 

Suppose our share trading call is like this

Tata Steel: Buy above- 257.50 Target-260, 263, 268 SL- 255.50

                  Sell below- 252     Target- 248.50, 245, 242,238  SL- 255

Now how we will trade this call:

1. Buy trigger Point is 257.50, Now there are 3 scenario possible at opening trade at 9:15 1) Tata Steel Open below 181 2) Hindalco Opens above 181 3) Hindalco Opens at 181

Lets discuss each scenario 1 by 1

1) Tata Steel Open below 257.50- Suppose it opens around 255 in that case wait for Tata Steel  to come at 257.50 sustain near that level at least for 1 mins and take the trade.

2) Tata Steel Opens above 257.50 —In this scenario wait for Tata Steel to come at 257.50 sustain near that level for at least 1 mins and take the trade.

3) Tata Steel Opens at 181 — Take trade at opening immediately.

Few Point to consider before you take trade

 

• Keep a strict stop loss in all your trades, trading without stop loss will end your trading capital soon.  
• Some time it may happen that as soon as you take the trade it may reverse and hit your stop loss, don't feel bad and keep calm as next day you can again make profit.
• In the morning trade session stocks move very fast so if you are unable to catch a good move in a trade don't feel disappointed.
• In intraday trading decisions making need to be very fast to enter and exit a trade.   
• Once your first target is achieved keep your stop loss to cost to cost to protect your profit. once your second target is achieved move your SL to first target.
• If your stop loss hits two times in the day on buy/sell side just avoid trading in that stock for the rest of day as the stock is very volatile that particular day.
• If there is a news about the stock in a particular day like results or any other company related news then trade the stock after the result/news is out.
• If Open = High avoid taking Buy Trade and if Open = Low avoid taking the SELL trade in initial half an hour. Take the trade only if it breaks high or low during the day.
• During a trade if Buy target is achieved or SL gets triggered and Stock reverses back than same Rule apply for Sell. Eg. Tata Steel after Hitting 1 Target at buy side moves down and makes  a low of 252.50 at 12 PM . Now as our Sell call was below 252, as discussed above let it sustain at 252 for at least 1 mins, if the stock did not sustain at the price level for 1 min then avoid the trade.
• Always look for Risk/Rewards ratio while taking a trade.
• Be disciplined in intraday trading, because only discipline can make you the money in intraday trading.