Intraday Trading Tips to Apply Stop Loss
An intraday trading is a marketplace where the traders need to book their positions on the same closing day. As the term reflects, an intraday trading means a day trading where the market shuts down on the same day and no position is carried forward for the next trading day. Thus, the traders step into this market with an only purpose of making a great profit in a single day and therefore, it's not a right trading market for the investors with the purpose of investment. For sure, anyone can make quick money from this market, but, one thing makes it the most complex and unpredictable market, which sometimes can put the trader into great loss as well. Hence, to avoid the losses, traders can apply stop loss. The market analysts advise that the traders need to constantly keep an eye on the fluctuating value of shares, but, with stop loss order, they don't have to actively track the share values. it's one of the intraday trading tips to follow stop loss because the order is triggered automatically once the share price reaches the target of either profit or loss. Once the price reaches the target price, the stop order becomes a limit order or a market order. Hence, stop order can be applied to limit the loss in this unpredictable and volatile day trading market.
Stop loss limit order: