How to Trade with Intraday Calls?
The stock market is a diverse ecosystem offering investors a number of ways to earn money. People can opt for one or all of these methods while planning their portfolio and trading strategy. You can participate in the stock market as a longer term investor who parks their funds in strategic bets for a period of time, with the hope of realising returns in line with the growth in the stock value and price. Alternatively, you can also make money by trading in intraday calls.
In simple terms, intraday calls refer to the buy or sell recommendations which are generated based on technical and derivative data points. This trading strategy involves buying and selling on the same trading day. Since these are real-time trades executed during a single trading session, intraday calls are generated in cash and F&O segments and they are valid between the trading hours of a single day, which is from 9:15 am to 3:30 pm. To ensure optimal outcomes while trading intraday calls, the bet should be executed when the underlying security is quoting within the pre-stipulated range.
Trading with Intraday Calls
Since the positions are opened and closed on the same day, intraday calls ensure that the net position, at the end of the trading session, is zero. With no actual ownership of trades, intraday traders are focused on maximizing profits by using market volatility optimally. If you are keen on intraday calls, you should have a high appetite for risk as well as adequate time to track the market closely. Intraday calls can sometimes be executed in the blink of an eye and unless you keep a close eye on market movements, you could end up losing out on potential gains. Following share market tips and live equity tips can help you track the market efficiently and execute trades to perfection in the quest for high returns.
To trade intraday calls effectively, you should stay abreast of market updates and keep an eye on analyst tips as they help you sort through the noise and finalize potential deals. Intraday calls are especially effective during volatile markets as stock prices fluctuate sharply in such scenarios, offering the potential for tremendous upsides. However, unwise decisions could also lead to losses, so you should be very careful and conscious of the tips or bets you pick. Once you decide on your stock picks for intraday calls, determine your entry and exit or target prices to ensure that you do not get stuck in a loss-making proposition. Utilise stop loss options to lower the impact of potential losses and remember to book profits when your stock reaches the target price. Waiting for further upside could actually end up ruing your chances so do not give in to emotional biases like greed or fear while undertaking intraday calls.
Since intraday calls are executed on the same day itself, it is best to stick with the market movement instead of betting against the flow. Taking contrary positions can lead to potential losses and it is best to avoid such stances during intraday calls. Trade in liquid stocks to ensure that your trade gets executed on the same day itself. Remember to choose stocks which depict medium to high volatility as these offer the maximum potential for gains. You should pick strong stocks during an uptrend and go with weak stocks during downtrends as such a strategy allows you to make the most of the underlying volatility. Many traders think that intraday calls do not require patience as they are executed on the same day. However, you need exceptional diligence and patience to stick with your intraday call as you may be tempted, multiple times, to either book profits or cut your losses before the target price is breached.
Benefits of Intraday Calls
There are a variety of benefits to trading intraday calls. Firstly, since you square off positions at the end of the trading session, you need not worry about the impact of overnight volatility, which is a huge source of concern for traders. With intraday calls, you stand a chance to earn profit during both market upswings and crashes, as long as you time your bets effectively. Volatility becomes your friend, ensuring that you gain even during bear markets. Access to technical and derivative data and tips can help you realise strong gains from the market, that too without waiting for a longer period of time. With experience and practice, you can gain a strong understanding of the pulse of the market and gain the opportunity to earn a regular income as well as realise unforeseen profits if your calls prove favourable.
Intraday call trading is not for the faint of heart. You need to be patient and diligent while timing the market. You also need a high risk appetite to make it as an intraday calls trader. But if you have these qualities, the sky is your limit!
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