Trading happens to earn profit by utilizing the demand and supply of the company shares.Short term trading of more than two days to less than 3 or 6 months is positional trading.
Trading done within a day is intraday. Long only at Higher Low and Higher high. OR short at Lower Low and Lower high. Stop loss is previous low and 2% of the investment. Target should be at 1:2 ratio of stop loss. Based on the risk reward ratio it may be decided as business or gambling. If risk level is high to reward then it may be gambling. If the risk level is low to reward then it is business. the client of the broker places order through broker to the stock exchange and the exchange allot the shares to the client DP id and it will reflect in the client portfolio i.e. Demat account.
, , Basics of Stock Trading, demand and supply, Limit order, long unwinding, Market order, short covering
Hi,
Your query 1:: Whether Dow theory should be followed for Intraday trade also
No
Your query 2:: how to select stock in non-trending market
If the stock is trading non-trending, it’s better advised to keep away from the trade or else you can find a trading opportunity by using chart patterns.