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Best Strategies for Intraday Trading
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 conductedRead more
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.
See lessIntraday Trading Tips Today
Tips to Become a Successful Intraday Trader Plan Your Trades: Define entry and exit points before entering a trade, and stick to your plan. Manage Risk: Use stop-loss orders to limit losses and never risk more than you can afford to lose on a single trade. Stay Disciplined: Avoid emotional trading bRead more
Tips to Become a Successful Intraday Trader
Plan Your Trades: Define entry and exit points before entering a trade, and stick to your plan.
Manage Risk: Use stop-loss orders to limit losses and never risk more than you can afford to lose on a single trade.
Stay Disciplined: Avoid emotional trading by following your strategy rigorously and not chasing losses.
Focus on Liquid Stocks: Trade in highly liquid stocks with significant trading volumes to ensure ease of entry and exit.
Use Technical Indicators: Utilize technical indicators such as moving averages and relative strength index (RSI) to identify potential trade opportunities.
Follow News: Keep track of market news, economic events, and company announcements that could impact stock prices.
Practice: Wait for the right opportunities and don’t force trades when market conditions are unfavorable.
Review and Learn: Analyze your trades regularly to learn from successes and failures, and continually refine your trading strategy.
Start Small: Begin with a small capital allocation and gradually increase your position sizes as you gain experience and confidence.
Consider Timeframes: Adapt your trading strategies based on the timeframe chart you’re trading in, whether it’s scalping, day trading, or swing trading.
See lessHow to Learn Intraday Trading?
Best Way to Learn Intraday Trading You should go through YouTube channels and ebooks that deliver good stuff for free. Make a note of all functionalities that go into the process of trading Intraday. Understand the flow chart that explains stock exchange activities, stock brokers, and the nature ofRead more
Best Way to Learn Intraday Trading
You should go through YouTube channels and ebooks that deliver good stuff for free.
Make a note of all functionalities that go into the process of trading Intraday.
Understand the flow chart that explains stock exchange activities, stock brokers, and the nature of enrollment for practicing trade more prominently Intraday trading.
You must for some days get into the WhatsApp groups, facebook groups, and online stock exchange (day trading) forums.
After learning inside out of the trading/intraday trading you must check whether it suits your appetite.
You must visualize whether you can make it to be an investment instrument or transform your participation into a full-time trading professional.
Make a note of the pros and cons of the intraday, and validate it with your personality, your financial preferences, and your interactiveness with the stock markets.
If you are inclined to make it a full-time profession, place your finances and time for it. In addition, you need to seek guidance from a stock broker/Official agency like SEBI, NSE, or BSE.
For a full-time professional, you must always consider online intraday trading sessions. You can find several trading experts on YouTube, just enter the video sessions and reach out by clicking the link provided in the description box.
Join Online Courses for Day Trading
After learning, you must enroll with an expertise to seek live help on risk factors when you indulge in trading, it may cost a few additional bugs but doing it can cut down losses on the trade earnings.
On the YouTube channel, you will find stock experts like Pranjal Kamra, Sunil Miglani, and ProCapital.MohdFaiz, CA Rachana Phadke Ranade, Groww, B Wealthy, Trading Chanakya, Siddharth Bhanushali, and many more.
In addition, you can approach StockPro which renders live learning sessions and the company has a massive following on the Telegram channel as well. It is a good platform for day trading live sessions and getting the company’s services.
Get an Exposure to Paper Trading
Remember your theoretical learning about Intraday Trading doesn’t make you a real-time player in stock’s day trading.
To become a good buyer in day trading, you must have sufficient live practice without making a financial investment.
Many companies have come up with new live trading platforms but it is only for practice and therefore you need not put real money in it. It is termed Paper trading.
One of the leading discount brokerage firms is Zerodha, which indulges in providing virtual experiences with unreal money.
Paper Trading:
As I said, paper trading is a trading platform, you practice trade with virtual money yet it creates a real-time environment. You can equate it with simulators that generate a real-time presence in trading.
You must enroll with such paper trading platforms, and conduct everything that you intend to do in real stock trades.
You must generate the previous day’s time frame, and the current day’s 1-minute, 4-minute, and 15-minute time frame to draw inferences.
You must practice candlestick charts which define buying and selling patterns. Then, invest unreal money to purchase stocks and sell them to make profits.
You will get a complete picture of the entry and exit levels through paper trading and shall comfort you in real-time situations.
Caution:
Remember, day trading is a buyer’s market so you face tough and tricky situations when trading as the stock volatility is high in it.
See lessHow to Make Money in Intraday Trading?
Best Way to Earn Consistent Income from Intraday Trading Intraday trading requires not only money, but a combination of skills, strategy, and discipline to succeed. While there are no guaranteed strategies or indicators in day trading, here are some practical tips that will help you navigate the comRead more
Best Way to Earn Consistent Income from Intraday Trading
Intraday trading requires not only money, but a combination of skills, strategy, and discipline to succeed.
While there are no guaranteed strategies or indicators in day trading, here are some practical tips that will help you navigate the complexities of the Indian stock market and potentially earn income through day trading.
1. Learn & Practice:
Start by building a strong foundation of knowledge about the stock market, technical analysis, and trading strategies.
There are 1000+ online sources available to learn anything and everything about the stock market. The only thing you need is a burning desire to learn.
Here are some free online channels offering free knowledge out of their experience.
Also, there are free stock market ebooks available online, you can download it and learn.
So, nowadays everything is available online to learn, the only thing lacking is the desire to learn.
Most novice traders just watch 2 to 3 videos on YouTube and directly jump into the market with a goal of becoming the world’s best traders. Unfortunately, that is not going to work for more than 2-3 days.
2. Design Your Trading Plan:
Create a practically working trading plan that includes your risk tolerance, financial goals, and strategies.
Having a plan helps you stay disciplined and avoid compulsive decisions while trading.
Maintain a trading journal and note down the following
Monitor the journal closely and do not repeat the mistakes done in the past. This will give you a very good boost believe me.
3. Risk Management:
Set strict risk limits for each trade to protect your capital. A most common rule is to risk no more than 1-2% of your trading capital on a single trade.
This helps prevent significant losses and keeps you in the race for the long run.
Always maintain the risk-reward ratio of at least 1:1 or 1:2. If you maintain a 1:2 risk-reward ratio, even if you lose 50% of the trades, you will in the profit side.
Example: If your stop loss is about 1000 rupees.
Whenever you lose the trade, you lose 1000 rupees and when you win, you will get 2000 rupees if you maintain a 1:2 risk-reward ratio.
Even if things go wrong 50% of the time, you will get a decent return.
4. Start with a Demo Account:
Before dumping real money into the market, practice your strategies on paper trading sites and do trial and error.
This allows you to refine your skills and gain confidence without financial risk.
There are a few paper trading sites available, you can check them here.
5. Technical Analysis:
Technical analysis plays a vital role in intraday trading. Master technical analysis to identify trends, support, resistance levels, and key chart patterns.
Understanding technical indicators can enhance your ability to make sharp decisions.
6. Control Emotions:
Every trader must become a robot during trading hours. Means absolutely ZERO emotions.
Emotions can make you implement compulsive decisions. Develop the emotional discipline to stick to your trading plan, even when you lose.
Attend some online workshops or do some yoga practices to get emotionally stabilized.
7. Diversify:
Avoid putting all your capital into one stock/ position. Diversification can help spread risk and reduce the losses when things go wrong.
8. Learn From Mistakes:
Even if you have 20 years of experience in trading, still you must learn new things. The stock market is ever-evolving, and successful day traders continually update their knowledge and adapt to new market conditions.
Your earning goes down when you stop learning. Both are interlinked.
Apply these practically possible ways to become a successful trader in India.
See lessWhat is the Best Time Frame for Intraday Trading?
Best Time Frame Chart for Intraday Trading in 2024 One important aspect of a successful day trader is selecting the right time frame chart. Yes, choosing the right time frame chart is a game changer. The time frame chart you choose can significantly impact your trading strategy and decision-making pRead more
Best Time Frame Chart for Intraday Trading in 2024
One important aspect of a successful day trader is selecting the right time frame chart.
Yes, choosing the right time frame chart is a game changer.
The time frame chart you choose can significantly impact your trading strategy and decision-making process, and ultimately it results in your profitability.
Out of my trading experience, I will share the practical reasons behind choosing the right time frame chart and by the end, I will share the best time frame chart for day traders.
Understanding Time Frame Charts
Before getting into the main topic, let beginners understand what is time frame chart.
Time frame charts represent price movements over a specific period, such as minutes, hours, days, or weeks.
Each candlestick or bar on the chart displays the opening, closing, high, and low prices within that time frame.
Different time frames reveal different levels of price detail, ranging from minute-by-minute fluctuations to broader trends over several days.
How to Choose the Right Time Frame for Intraday
The best time frame chart for intraday trading depends on various factors, including your trading style, risk tolerance, and market conditions.
Here are some common time frame options and their characteristics. Choose the right time frame that suits your goals and strategies.
1-Minute Time Frame Chart:
The 1-minute chart provides detailed price movements and is suitable for scalpers who aim to capitalize on small price fluctuations within minutes.
Traders using this time frame must react quickly to market changes and closely monitor their positions.
A little negligence may lead to huge losses within seconds. Sometimes that may lead to profits also.
Who Can Choose This Time Frame: Scalpers, Professional Traders, Gamblers.
5-Minute Time Frame Chart:
The 5-minute chart is the most used time frame by day traders in India. It gives a better understanding of the marketing movement and helps identify the day’s trend in the first three candle sticks.
Who Can Choose This Time Frame: Day Traders (Beginners & Professionals)
15-Minute Time Frame Chart:
The 15-minute time frame chart provides a broader perspective while still capturing intraday trends.
Who Can Choose This Time Frame: It is suitable for traders who prefer slightly longer holding periods and want to avoid excessive market fluctuations.
30-Minute Chart:
The 30-minute chart smoothens out price fluctuations further, making it suitable for swing traders looking to capture intraday trends lasting several hours.
This timeframe is not suitable for day traders.
1-Hour Chart:
The 1-hour chart is favored by swing traders and those who prefer holding positions for longer periods.
It filters out short-term fluctuations and helps identify significant trends. This timeframe helps swing traders understand the actual trend of the market.
Practical Example:
Let us consider two traders, each using a different time frame chart for intraday trading:
Trader A:
Utilizes a 5-minute chart for intraday trading. They focus on short-term price movements and aim to capitalize on quick momentum shifts.
Trader A identifies a bullish reversal pattern on the 5-minute chart, indicating a potential buying opportunity in a stock.
They enter a long position based on this signal and set a tight stop loss just below the recent low.
As the price goes up, Trader A exits the position with a profit before the end of the trading day.
Trader B:
Now let us see how Trader B acts using a 15-minute time frame.
Trader B Prefers a 15-minute chart for intraday trading. Trader B identifies a stock that has been steadily climbing on the 15-minute chart throughout the morning session.
They wait for a pullback to a key support level and enter a long position, anticipating a continuation of the uptrend.
With a longer time frame perspective, Trader B holds the position for several hours, eventually exiting with a substantial profit as the stock reaches its intraday high.
From my experience, Finding the best time frame chart for intraday trading requires careful consideration of various factors, including trading style, risk tolerance, and market conditions.
Rather than implementing others’ strategies, It is always best to establish your own strategy and time frame for a better result.
Experiment with different time frames to find the one that aligns best with your trading goals and preferences.
For me, a 5-minute time frame chart works best for intraday.
See lessCan We do Day Trading with 5000 Rupees?
Intraday Trading with just 5000 Rupees 5000 rupees is certainly enough to do intraday trading. I would further add that in a day trade when I could earn a profit of 5 percent consistently every week then why can’t you? Ever since I began to indulge in day trading, I concentrated on time frame chartsRead more
Intraday Trading with just 5000 Rupees
5000 rupees is certainly enough to do intraday trading. I would further add that in a day trade when I could earn a profit of 5 percent consistently every week then why can’t you?
Ever since I began to indulge in day trading, I concentrated on time frame charts to realize the stock price volatility and the possible trends like uptrend, downtrend, and sideways.
When I trade, these chart analyses enable me to cover the losses courageously when any.
You Do What I Did…
In the beginning, until you do not generate sufficient trading capital do not engage in trading on expensive stocks.
Try to conduct at least 3-day trades in a week which I did so.
Try to invest in low-value stocks, say, having a stock price of INR 50. It can be a penny stock, remember over time it shall generate decent money. Or, even turn into multi-bagger penny stocks.
Invest in larger volumes of low-priced stocks or a few stocks of high price by following the below-stated technique.
Techniques to Pool-in Funds in Trading Capital:
Initially, I entered with a limited trading capital of INR 5000.00 but the returns were relatively low like a 5 percent consistent return on investment every week.
For more capital investment, I managed to obtain more trading capital from my stock broker who covered my investments to a range of five times my trading capital. Here, for INR 5,000.00, I acquired a margin cover of INR 25,000.00, some call it margin trading too. Although it was a huge amount, it was manageable.
Your stock price must be about one percent of the trading capital.
I maintain a check of activities as per my trading plan and then run the flow of activity in the markets.
Trust me, my real-time analysis by using time frames gives a cutting edge to make more money than usual.
It is a rare occurrence that the price movements run in opposite directions to my chosen stock price movements leading to losses.
You must not rush into investing in the markets when the opening bells ring immediately.
In the morning before you enter you must read the previous day’s opening and closing stock market trades. This study indicates the existence of buy option or sell option markets.
Your Day Trading Limitations:
In day trading, you need to enter (buy) and exit (sell) in a single trading session. It would help if you took countermeasures when the stock markets are hit with strong volatility.
Make steady use of stop-loss, breakouts to minimize the losses.
Employ time frame charts, from 1 to 4 minutes, and grasp the patterns effectively.
Wait for a couple of minutes, then check the trade patterns then decide whether to invest whether it is a buyer’s day or seller’s day.
Try to make a technical analysis and investigate the market movements, and sentiments.
You will find a deep impact of the company news in the markets, meaning stock prices fall or rise drastically. In the process, you can also find the stocks hitting the upper/lower circuit.
Recommend You to Do it Daily:
Day trading decides your winning and losing money in a single trading session. Therefore You follow this repetitive mannerism to reduce your level of profitability.
Using technical indicators like time frames of 1 to 4 minutes of chart patterns helps you decide on entering or keeping away from day trading on a specific day.
See lessIs 5% on a Swing Trade Good?
Is 5% on a swing trade good? Warren Buffet, the notable stock market guru, advises investors never to dream of more than a 30 percent return on their capital and it will double in 3 years. He is often referred to as the ‘Oracle of Ohama’ which means that he was born in Ohama and is coined as the besRead more
Is 5% on a swing trade good?
Warren Buffet, the notable stock market guru, advises investors never to dream of more than a 30 percent return on their capital and it will double in 3 years.
He is often referred to as the ‘Oracle of Ohama’ which means that he was born in Ohama and is coined as the best financial investor in the International Stock Markets.
Now the question is, can I earn 5 percent profit every month and the answer is yes.
If you trade carefully you can earn somewhere between 10 percent to 50 percent annually.
Note:
You must remember that your stocks will witness an involvement in several trading sessions, and for each trade you will be levied trading fees and other relevant fees.
Hence the level of profits at the end of a year automatically declines.
How to Earn 5% on Swing Trade
You can make profits on the price swings experienced by your underlying assets in the stock markets.
By utilizing the swing trading stategies you can make money on your assets, equity, commodities, and currencies.
Fundamentally, the swing trades are short-term. You can yield good returns by holding your positions for a short period, say, for days to a few weeks.
You can improve your profit levels by adding small amounts of returns in buying and selling trades.
You can enter into higher risk zones when trading, such as reversal against the last open markets then you need to act instantly and exit their positions.
Limitations in Swing Trading:
Although you cannot invest a small amount in swing trades and expect huge returns, still you must always follow the thumb rule.
Never trade stocks whose value is more than 1 percent of your trading capital. For instance,
If your trading capital is INR 1000.00 and you plan to buy a stock priced at INR 500.00 to INR 600.00 and after setting a stop loss of 10 percent below the entry price you will be risking 5 percent of your trading capital.
Since 10 percent of INR 500.00 is INR 50.00. Hence, the value of impending loss is more than 1 percent to 3 percent.
In such situations, you must buy stock of lower value, say, INR 100.00 to INR 200.00. Then on applying a stop loss of 10 percent, you will be losing 1 percent to 2 percent of your trading capital. Therefore, to buy a stock of higher value your trading capital must run high.
Ideally, if you are able to make a profit of five percent on your investment every week then in four working weeks you will have done 20 percent of business on your investment.
Risks Involved in Swing Trading:
You can witness price gaps when your bought stocks experience overnight and weekend market risks.
You may not be able to identify the right, accurate, and consistent performance of the stocks and hence the inability to set the right timing can lead to losses.
In a rush, to obtain the short-term market moves in the swing trade, you may unintentionally skip the long-term trends or exceptions stocks.
See less