Intraday Stock watch

There have been more requests for thoughts & ideas on intraday trading. We had been against it and had been advising people not to indulge in intraday trading, which has eventually drained most of the trader's capital. With so much interest getting into this segment, a thought about how we can make this area a profitable one. Is it possible? If so, with so many traders interested in it, it can be a guiding light for them. At first let's make a small checklist of the pros and cons of intraday trading. We are listing a few here at the moment; readers can feel free to add more.

Advantages:

1. You can have a peaceful sleep with no overnight positions to worry about.
   
2. Low commissions on trades as you close your positions without delivery.
   
3. More exposure to your capital and hence more returns.
   
4. More number of trades and hence more experience to learn from those trades.
   

Disadvantages:

1. Lesser gains from a strong trend, as we have to close positions soon.
   
2. Total concentration on the markets, small capital bases will not give sufficient returns.
   
3. Impulsive trades will result in more loses and time factors makes you to trade more.
   
4. The advantage of exposure can be fatal on your account wiping out capital faster with losing trades.
   
5. Expenses on data feeds and costly software's.
   
6. Strong discipline to do a real great home work every day.
   

Though disadvantages are more we took courage to make a small effort to venture into this area to find some solutions. How can we change the disadvantages into opportunities? The most important one here is discipline. If we are disciplined to do our homework, have a clearly tested trading system and stick to it faithfully. We can succeed; we should not be impulsive and rather wait for the opportunities to show up. Only trade if you are fully confident on the patterns.

Keep risks lower as there is bound to be more trades and you need your capital safe to trade the next position. As a resource we can risk 0.25% of our capital in any trade. Have a minimum 2 times reward to risk expended. Adequate capital so that the time spent on this venture is rewarding. It should make your living, only then venture into it. Do not keep intraday trading as your sole bread winner, have it as a part of your trading arsenal. This will keep you off from emotional moves. Select few stocks to monitor and be with them, do your analysis the previous night, prepare your plan of action and wait for the opportunities to show up. If in a day you do not get a trade, be patient next day could be rewarding. Use the time to develop your skills. Record all your trades, go back to learn from your experience, all of your records will be rich with knowledge.

To start with we have made a small list of stocks which have the potential for a trade with their directions. You may use them to identify trading signals, as a regular effort we shall update this daily for the benefit of intraday traders.

Long possibility:

INFOSYSTCH, TATASTEEL, UNITECH.

Short possibility:

IBREALEST, BANKNIFTY, NIFTY, LICHSGFIN, SAIL, SBIN, TATAMOTORS.