7 Best Strategies for Intraday Trading

Interested in making more money in stock markets? Just be aware of the best strategies for Intraday trading. Remember, you can make good money in small chunks by buying/selling stocks numerous times in a day’s trading session.

Over time, experts have conducted statistical and logical analysis by using bar graphs, candlestick graphs, etc., and developed umpteen strategies to identify entry and exit positions.

The most prominent strategies can be undersigned as momentum strategy, breakout strategy, reversal strategy, scalping strategy, moving average crossover strategy, and gap and go strategy.

Here are the 7 Best Strategies for day trading in India

Momentum Strategy:

Depending upon the trend set of the stock, and the significant stock trend changes, you can decide to focus on an analyzed stock for trading.

In day trading, the stock prices take on peculiar trends that are dependent on the news, acquisitions & mergers, quarterly profits, earnings, etc.

If the momentum of the stock prices goes upward then you will prefer to purchase at the support and sell at the resistance and your selling spree depends mainly on the market momentum.

Breakout Strategy:

In intraday trading, the activity of buying and selling securities must be completed in a day. Therefore, you must be able to identify the stock prices that take new positions thus breaking out of the normal stock price fluctuations.

When the stock enters into a newer price range, you must be able to identify the threshold point when the prices rise or fall.

When the stock price rises above the threshold point, traders begin to buy shares thus entering long positions. Likewise, as stock prices fall below the threshold point, you can sell shares or enter short positions.

Reversal Strategy:

You can come across an instance where your trade plan may follow a path opposite to the market trend then making decisions becomes the most challenging.

In such a scenario, you will have to make a thorough analysis and calculations to overcome losses and maintain a decent profit margin.

You will have to plot precisely the pullbacks and consider your stock position strengths more accurately. You can apply the reverse trend strategy when the stock prices tumble and you intend to reduce the losses on your bought stocks.

Scalping Strategy

In commodity markets, a scalping trading strategy is applicable as you can make money from small price changes in the commodities.

You must consider stocks to characterize liquid and volatile shares.  For every trade, you must employ stop loss on the placed orders.

Moving Average Crossover Strategy

When your chosen share price moves above the moving average, then it is called an uptrend, then buy stocks or enter long positions.

Likewise, if the same share price moves below the moving average it is called a downtrend, then sell shares, or enter a short position.

Gap and Go Strategy

Gap and Go Strategy is employed in instances when a stock possesses no pre-market volume.

If the price of a stock is higher at the opening bell rings than the closing price of the previous day, it is said that a gap has been established. When the opposite of it happens, it is known to be a gap down.

You can opt for this gap-and-go strategy and purchase such stocks with a view that the gap will close down before the day’s closing bells.