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Top Day Trading Tips for Traders

Intraday Trading Tips for Starting Traders

by Matthias Kuerpick

There are two kinds of persons in a market, i.e., traders and investors. While most people do not know the difference and use them interchangeably, there is a significant gap between them. An investor is a person who analysis every tradable asset, including its financial statements and long prospects, and invests in it for a significant time. A trader plays between the selling and buying price of an instrument. The investor is not affected by rumors and short-term news; the trader is hugely dependent on them. 

Most traders hold their positions for a week or a day, with maximum closing of all orders on the same day. Today, in this chapter, we’ll read here 5 top intraday trading tips for novice traders. 

Best Intraday Trading Tips for Beginners


The first tip is to diversify your intraday holdings balanced, i.e., in large, mid-cap, and small-cap stocks. Generally, it is recommended to have at least two-three shares from each. Large caps are more liquid than small caps due to high trading volume, but small caps have high earning potential, with mid-cap being a mixture of both. 

Make sure to close all the positions before the session completes, with some exceptions being there all the time. 

Price Levels

It is crucial to determine the entry, exit, and target price levels before entering a trade. The reason is – A trader’s psych most probably changes after executing an order. After falling into feelings like greed and fear, most traders either sell or buy financial instruments too early. If the prices fall, then the investor, to avoid further loss, in fear, sells it before, and similarly, if the prices rise, to take the existing profit, avoiding the high earning long term potential.

Thus, it is crucial to set stop losses at reasonable levels and control emotions. 

Stop Losses

Stop-loss is an essential day trading tool that sells a stock automatically after the price reaches below a certain point. The device works like magic for day traders as it mitigates the traders’ need to look at the price line continuously. For example, you buy a share at $50 and expect it to go to $60 and set a stop loss at $45. Instead of rising, the prices fell to $30, but your share would have been sold at $45. 

The tool aids the investors in mitigating the losses due to sudden falls. However, an investor should set the stop loss at a reasonable level as keeping it too close to the current price might scrape off the share unnecessarily. The instrument works against the emotional phenomena involved in trading. Note that in the case of going short, the tools use oppositely, i.e., selling at rising prices. 

Avoid Rumours

Due to easy communication methods, information and data spread like water and fire in the digital era. Thus, avoiding rumors and assuring that your information is authentic is mandatory. The most vulnerable is social media, and trusted sources are accurate data sources like Reuters. 

The tip will protect you from making unwanted, unnecessary decisions and thus avoid losses. 


Before entering into any profession or field, it is crucial to educate yourself about that field. A good way is to read. One can read magazines, articles, journals, etc., but book bros are the best source of knowledge. 

Make sure to analyze several factors affecting the market and their impact. One can also follow other trading experts to know their analysis methods. Also, develop your trading style with time, which can be a popular technique or a combination of two or more. 

So, these were the best five-day trading tips for you. These tips are crucial but do not guarantee a winning position due to market uncertainty. There would be dozens of others like the above five ones, and unless you execute them seriously, there’s no sense in reading them. In the next chapter, we’ll study in detail currency day trading and the crucial information related to it. 

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