InvestorQ : What is an entry price with respect to intraday trading?
Jignesh Gupta made post

What is an entry price with respect to intraday trading?

sara Kunju answered.
3 years ago
Since you only have 6 hours to close your intraday trade, you need to be careful of the selection of your stock and your entry price. When you are, for example, betting on a price movement of Rs.4 then paying even 50 paise more is like losing 12.5% of your profits. That is why entry price becomes so critical. You can use technical charts to identify and you’re your entry. Important thing is to be as close to the bottom as possible. You can argue that catching bottoms and tops is impossible, but that is where you need to fine-tune your ability to read charts and be as close as possible to the tops and the bottoms as possible.
Before placing the buy order, you must determine your entry level based on your chart analysis. Then you have to use discretion.
Let us say you decide on the range in which you want to enter the stock. Once the range is set you have to decide whether you should buy at the upper end of the range or the lower end of the range. If the market is weak, then go to the lower end of the range otherwise go to the upper end of the range. It is common for a person’s psychology to change after purchasing the shares. As a result, you may sell even if the price sees a nominal increase. Due to this, you may lose the opportunity to take advantage of higher gains because of the price increase. Basically, you have limited leeway when you trade intraday. That is why it is better than you do your complete homework before making an entry into a stock for intraday trading.