Implementing The Right Strategy For Highly Volatile Markets

Trading stocks and other financial instruments online have become a cakewalk with the advent of multiple trading platforms, some of them being mobile-based applications. Any mobile trading app can only become a user’s favorite once it has the potential to keep up with the pace of share market price movements and provide all the essential tools and analysis for trading like a pro. 

Recently, a form of trading has gained maximum traction, which allows traders to buy or sell stocks within the same day, aiming to achieve maximum profit on short price movements. This form of trading is known as intraday trading, and it is believed to be a tough nut to crack, not if you have an intraday trading platform that provides real-time data and all the necessary trading tools. 

Intraday trading is known for its unique features, such as the margin trading system, in which the traders can trade on money borrowed from the broker. This fund is known as margin money. It allows them to take larger positions with limited capital, and the risk potential is also higher. Apart from this, there are other significant factors associated with online intraday trading: high volatility and trading volumes, a diverse range of stocks, and financial instruments. 

The Indian share market is prone to high volatility and the risk of losing money due to sudden price movements and some regulatory restrictions. Hence, traders must be well versed with the recent market trends, whether they are trading through the leading stock exchange platforms or any stock trading app. So that they can make informed decisions, let’s decode some of those tried and tested strategies.

  1. Choosing multiple large-cap shares with high liquidity is always beneficial for investors because holding on to small or midsize shares delays the process because of low trading volumes. In this case, traders might have to hold onto these stocks longer than they desired.
  2. Building a short-term trajectory always helps: 
  • Determining the entry-level and target price is important to stay level-headed throughout the trading process to gain profit in full potential. It is the natural psychology of investors to get intimidated by little price upsurges and think of selling the stock urgently.
  • Prolonged holding of stock because of uninformed greed may incur unimaginable losses. It is always wise to let go of the stocks after achieving the set target because holding them beyond the necessary time frame may subject the particular stock to a sudden downtrend leading to unexpected loss. 
  • Stop loss trigger is one essential tool that helps to minimize the loss by facilitating the closure of trade positions when the stock price reaches a predetermined level. In this way, traders can save themselves from sudden price movements if they plan to hold onto a stock for longer.
  1. Stick to the market trends strictly because the stock market is one of the most unpredictable market domains across the globe. No set theory can guarantee certainty, but keeping a close eye on price movement trends can help to avoid disappointment.

These are only a few strategies that can help to stay unabated in the market, and other things will be taken care of by some of the leading trading apps like the nifty trading app, which provides not only real-time market data but also beneficial features like order entry, portfolio tracking, and trade management. 


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