InvestorQ : Is it a good strategy to do intraday trading in volatile stocks?
Aashna Tripathi made post

Is it a good strategy to do intraday trading in volatile stocks?

3 years ago
As a day trader, remember that investing in stocks that are volatile in nature is beneficial. The prices of these shares fluctuate more as compared to others and, if executed properly, lead to increased profits. Intraday stock tips provided by brokers can be used as an insight to improve your strategies. As a beginner to intraday trading; don’t start trade immediately after the market open. Take about 30-40 minutes to read and interpret the market sentiment for the day. Then take a call. Don’t jump into volatility as it means more chances of stop losses getting triggered.
The high volatility of stocks may lead to an increase in the number of times you hit stop losses. That can be counterproductive. This is why placing a stop loss while opening a position in the stock market is crucial for avoiding huge losses. For long positions, stop loss can be placed below the recent low, and for short positions, it can be put above the recent high. Accordingly, profits marker can be set to get the risk to reward ratio as 1:2 or 1:3, depending upon the volatility of the market. You need stock market volatility to make money on intraday trading but don’t get caught up in highly speculative stocks.