Sign Up to our stock-market-based Q&A Platform to ask questions, answer people’s questions, and connect with other people.
Login to IndianStox.com (Q&A Engine) to ask questions, answer people's questions & connect with other people.
Lost your password? Please enter your email address. You will receive a link and will create a new password via email.
What is the Best Time Frame for Intraday Trading?
Intraday Trading Time Analysis There is no rocket science that defines the best time to do intraday trading, but still you must follow the logic before beginning your day trade. For better understanding, go through my experience in intraday trading. Observe the first 15-minute Trade Signals Enter tRead more
Intraday Trading Time Analysis
There is no rocket science that defines the best time to do intraday trading, but still you must follow the logic before beginning your day trade.
For better understanding, go through my experience in intraday trading.
Observe the first 15-minute Trade Signals
Enter the day trading scenario, watch the trade signals. You will be surprised to notice that the first 15-minute trading, usually, shows huge stock prices variations.
After the first 15-minute, stock intraday trade, you will be able to identify the trade characterisation, which means, will it be a buyers market/sellers market?
If the trade signals trend synchronizes with the sellers market scenario, then you must withdraw yourself from trading on that day.
As the intraday trade calls for a buy and sell of a stock.
Know when you should trade, first half or second half of the day trading?
The entire day trading session can be divided into two parts. Many raise the query that states: What is the best time to do intraday trading? Is it the first half or the second half of the day trading sessions?
Logic states that the evolving news on corporations, businesses, and financial updates of policies of the government alter the stock market volatility.
For positive news, the stock prices expand, and for negative news, the stock prices collapse. Therefore, during the first half of the day trading, you can begin to buy stocks.
In the second half of the trading, you will have to study attentively the trading signal charts such as candlestick patterns, etc to deduce certain important facts.
Over a period, the stock trades show an upward trend or create a trend-reversal and these facts become a measure to define/redefine your business day trade plan.
If you find the trading signals favoring your purchased stocks then you must attempt to sell out and make small profits whenever it is possible.
Later, if you find the trend that can reap benefits you can continue to buy and sell stocks to profit during the day trading.
Important Note:
Make use of stop loss techniques because the violent stock variations can lead to an absolute loss while you make a trade investment.
See lessWhat is the Timing for Intraday Trading?
Intraday Trading Timings in India The intraday trading timing in India starts from 9:15 am and close by 03:30 pm from Monday to Friday (Except on Public Holidays). It is just not the start and finish of the day trading timings that is essential but also know the conducive timings to trade. However,Read more
Intraday Trading Timings in India
The intraday trading timing in India starts from 9:15 am and close by 03:30 pm from Monday to Friday (Except on Public Holidays).
It is just not the start and finish of the day trading timings that is essential but also know the conducive timings to trade. However, below are the trading timings mentioned in the trading sessions.
Stock markets give you an opportunity to login and log out the markets at NSE/BSE to trade stocks like buying and selling those on the same day. It is termed as intraday trading.
Caution:
The business operations in the stock markets are highly volatile and a likelihood to experience a high volatility when you trade. That’s why, you must realise the right time to enter and exit the markets keeping a guard on trading signal charts. However, let us concentrate on the intraday trade timings.
Stock Market Opening & Closing Bells
You must set off to stock markets ( NSE/BSE) by the time the markets open with the opening bells at 09:15 am.
You must view the closing stock price of your desired on the previous day, and compare with the current day opening prices.
You must wait for the first 15-minute timeframe and observe the patterns (candlestick graph). Check it for buying markets, in case, the graph patterns show the selling markets scenario, then quit the markets for safety.
Another important period that is most conducive to do trading is, between 09:30 am and 10:30 am. The trading signals feature a particular pattern that proves beneficial for you.
From 09:30 am to 10:30 am, the stock markets experience higher liquidity, therefore you can make an easy entry and exit with good profits.
The stock volatility is higher in the early hours of the market and therefore this feature facilitates the trading activity of buying and selling.
Another point in time, 02:30 pm is highly crucial for you, it is here that you will experience an upward trend, downward trend, or sideways. If you are holding stocks you must begin to reach seriously then.
Note:
In case you are unable to make a decision on your bought stocks then your stock brokers make a decision between 03:15 pm and 03:30 pm and sell your stocks. You can obtain guidance from several stock brokers like Zerodha, Angel Broking One, upstox, and many more.
Hopefully, this piece of info can come of some use to all readers.
See lessBest High Liquidity Stocks for Intraday
List of High Liquidity Stocks for Intraday Trading Before I describe a list of liquid stocks for intraday trading you must understand why I am supposed to select liquid stocks rather than. The basic property of Intraday trading is to trade stocks that involve buying and selling of stocks in a day.Read more
List of High Liquidity Stocks for Intraday Trading
Before I describe a list of liquid stocks for intraday trading you must understand why I am supposed to select liquid stocks rather than.
The basic property of Intraday trading is to trade stocks that involve buying and selling of stocks in a day.
You are advised to profit from the price fluctuations of stocks that range from a few seconds to a few minutes.
Liquid Stocks for Intraday Trading:
The essential feature in trading is, when you purchase stock it should be available in huge volumes to trade and possess sufficient volatility.
Volatility is the degree of stock price variations and its high presence will enable you to obtain potential gains when traded.
Liquidity ensures easy buying and selling of stocks because of high trading volumes in the markets.
Be mindful, when you have decided for an intraday trading plan, for a smooth and successful buying and selling of stocks you must research for liquidity stocks.
The graph represents NIFTY 100 liquid 15 stocks and they represent 3-month performance rallies, taken on October 13, 2023. The closing NIFTY 100 liquid 15 is 5330.35.
Below are the list of 15 companies that can be traded in Intraday trading due to its liquidity feature. These fifteen stocks are as follows.
Tata Motors, IndusInd Bank, HCL tech, Maruthi Suzuki, Bajaj Finserv, Bajaj Finance, Bharti Airtel, RIL, Titan Company, Adani Ports SEZ, Tech Mahindra, Tata Steel, SBI, Adani Ent., Axis Bank.
Illustration of illiquid Stocks in Intraday:
You may recognise the day trading on a particular day to be bullish in nature. Keeping such views, you will purchase 1000 shares @INR 6.00.
You will place an order (option buy) for 1000 quantities of shares.
Over a period, you may be allotted 500 quantity at INR 6.5 and remaining 500 quantity at 7.5.
The shift in the prices is observed because you might not have found a seller at INR 6.0. However, this will have increased your purchase of shares by 16.7%. That means, there is an increment in buying price than the current market price that you opted for.
In a similar manner, you may lose more percentage when you execute a put option for the bought shares of 1000.
Important Note:
You may have understood from it that you must purchase a share that is traded in high volumes and high volatility.
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 lessCan We do Day Trading with 5000 Rupees?
How to get Profits in Intraday with Just 5000 Rupees It is always the best choice to start with small capital in a risky field like the stock market. Most beginners trade with huge money in the beginning and end up with a "BIG zero". The best way to earn in the stock market is: First 6 months: LearnRead more
How to get Profits in Intraday with Just 5000 Rupees
It is always the best choice to start with small capital in a risky field like the stock market. Most beginners trade with huge money in the beginning and end up with a “BIG zero“.
The best way to earn in the stock market is:
First 6 months: Learn and apply strategies in paper trading websites
Next 6 Months: Trade with the least amount like 2000 to 5000 rupees in whatever the strategy you learned.
After gaining confidence in your strategy, you can increase the capital month by month.
Tips to Earn Consistent Income in Intraday
Here are a few learning points to earn consistent income day trading.
Look for stocks that are highly liquid and have significant trading volume. This ensures that you can enter and exit positions easily without incurring significant slippage.
Stocks with low liquidity are not suggestible for intraday trading.
Choose Stocks with High Volatility:
Volatile stocks can offer more trading opportunities for day traders. Look for stocks that have a history of price fluctuations throughout the trading day
However, be cautious as high volatility also increases the risk of losses.
Here is the detailed article on Why Stocks Fluctuate & When. This will help you choose volatile stocks for intraday trading.
Learn Technical Analysis:
Technical Analysis plays a vital role in intraday trading. Popular traders are providing free knowledge on technical analysis through their YouTube Channels.
You can choose any of the channels to learn technical analysis.
Technical analysis helps you identify potential entry and exit points. Look for stocks that are exhibiting clear trends or patterns on intraday charts, such as moving averages, support and resistance levels, and chart patterns like flags or triangles.
Day Trader’s Favourite Stocks
Here are a few parameters that everyday traders prefer for intraday trading
Large-cap stocks: These are the stocks of well-established companies with large market capital. They tend to be more stable and less volatile compared to smaller-cap stocks.
Mid-cap stocks: These are shares of companies with medium market capital. They can offer a balance between stability and volatility, potentially providing good trading opportunities.
Stocks with High-beta: Beta measures a stock’s volatility relative to the overall market.
Stocks with high betas tend to move more than the market as a whole.
They can provide opportunities for larger gains but also come with higher risks.
Follow the above guidelines and implement them to gain consistent profits in intraday trading.
See lessWhat is Intraday Swing Trading?
In intraday trading, you can observe volatility creating an uptrend, downtrend, or sideways of your chosen stocks. If you are a swing trader, you can make use of the intraday trading characteristics that can best suit you to sell your stocks. The basic funda in intraday swing trading is to make useRead more
In intraday trading, you can observe volatility creating an uptrend, downtrend, or sideways of your chosen stocks. If you are a swing trader, you can make use of the intraday trading characteristics that can best suit you to sell your stocks.
The basic funda in intraday swing trading is to make use of the swings and when the trend is conducive to your stocks then you can execute put options. However, you can make your selling when the trend is on the top in a day trade or buy your chosen stocks when the trading signals hit the bottom.
You must follow the time frame trend and, essentially, opt for swing trade against the 1-hour time frame performances.
Intraday trading and swing trading are two different kinds of trades usually preferred by traders as per their appetite.
In intraday trading, your process of buying and selling completes in a single day time frame whereas in swing trading your buying and selling can last from a few days to a few weeks.
In intraday swing trading, the trader is completely dependent on the direction of the trend. And, whenever there is a change in the direction of the trend, you will have to reset your stop loss option. By doing so, you can reduce the loss of your stock trade.
The change in the direction of the stock trends often referred to as swings will have to be judged before you indulge in buy/sell trade. For which, time frame is the best way to predict the high/low volatility, and even the direction of the trends.
You will also have to utilize charts, technical indicators, and oscillators in short-time trades.
To keep track of the price movements of the stocks you will have to maintain an analysis of Time frames run throughout, 1-minute, 5-minute, and 1-hourly.
See lessStocks or Mutual Funds, Which is Better?
Equity Vs SIP Investment Individuals can obtain stocks of a company either through IPOs, OTC, or stock trading and become a shareholder, which means, you are part of the company in framing the policies of the corporation. In a way, your opinion will matter in the policy formulations. Let us restrictRead more
Equity Vs SIP Investment
Individuals can obtain stocks of a company either through IPOs, OTC, or stock trading and become a shareholder, which means, you are part of the company in framing the policies of the corporation.
In a way, your opinion will matter in the policy formulations.
Let us restrict our conversation to stocks, it is the buying and selling of stocks in the stock markets. Whereas, the Systematic Investment Plan, SIP, is an investment method used in mutual funds.
Individuals can make planned monthly investments in the funds that determine the portfolio and earn money to beat inflation.
You can make good returns on SIP investments and high returns on stock investments. In both, you can find a similarity, stock experts and mutual fund managers invest money in the stock markets.
Stock investments can generate huge financial benefits by making different kinds of trading techniques like swing trading, intraday trading, futures and options trading, and so on.
In mutual funds, the fund managers put your investments in different portfolios to reduce the risk of losing money. You can expect a minimum profit of 20 to 40 percent on your investment per year.
SIP Investment Plans
The government allows SIP in mutual funds and also encourages fund managers to enter into a management scheme that provides tax savings on their investments. This provision is not made available in stock markets.
In mutual funds, the fund manager gives you the option to invest in aggressively managed funds and also issues you the authority to switch over your investments that suit your purpose. Shifting of funds from one zone to another can help you beat inflation values in the future.
Your funds invested in the high-risk zones can be managed by allotting it into less-risk zones, from one portfolio to another where the chances of unit fund value change from one portfolio stock to another stock market.
However, you must select a monthly investment for short-term/long-term like 2 and above years. Mutual funds should have at least 7 to 10 years of continuous flow of SIP every month.
Stock buyers/sellers must have the ability to bear the heavy loss that can incur at the time of busy business hours.
SIP investments are relatively safer and establish a comfort zone with the fund manager.
See lessHow Much Capital is Required for Option Selling?
Minimum Capital Required for Option Selling I will explain the capital required for option selling in simple words. Option selling involves position adjusting and it also required huge capital compared to any other trading methods. To be an option seller you need adjustment skills & a decent capRead more
Minimum Capital Required for Option Selling
I will explain the capital required for option selling in simple words.
Option selling involves position adjusting and it also required huge capital compared to any other trading methods. To be an option seller you need adjustment skills & a decent capital (at least 10 lakhs)
Let us Understand What Option Selling is:
Options come in two types: call options and put options. To sell options, brokers typically require you to keep a certain amount of money in your trading account as collateral, known as margin amount.
This is a safety measure to ensure you can fulfill your trade if the other party exercises the option.
Options Premium:
When you sell an option, you will get a profit known as the premium. This premium is your immediate profit.
However, remember that option selling involves in unlimited risk, you may lose you entire capital in one go if you are not careful.
Required Margin for Selling Options:
The margin requirement is a percentage of the total value of the contract that you maintain in your account. The percentage varies based on factors like the stock’s volatility, the option type, option value, and the market conditions.
Risk Management:
It is very important to manage your risk carefully when selling options. Do not sell more options than you can reasonably cover with your margin. Assess the potential risk for each trade and act accordingly.
There are multiple strategies to sell options like
You can master any two of the above strategies and do paper trading practically and then enter with real money. Opstra is one of the best paper trading websites for practicing option trading.
Is Swing Trading Better than Investing?
Swing Trading is Riskier than Investment The opinion changes from individual to individual, people who don't have time to manage their portfolio choose investment rather than swing trading. On the other hand people who expect high-returns prefer other trading methods like swing trading, day trading,Read more
Swing Trading is Riskier than Investment
The opinion changes from individual to individual, people who don’t have time to manage their portfolio choose investment rather than swing trading.
On the other hand people who expect high-returns prefer other trading methods like swing trading, day trading, scalping, etc.,
Before choosing the method to put your hard-earned funds check how much time you can dedicate. Swing trading demands more time to take positions, while investing requires very less involvement.
Investing often involves diversifying across various sectors and companies for long-term stability, while swing trading may focus on short-term approach about a week or 10 days.
Ultimately, both strategies can be profitable depending on your preferences.
Few people do both strategies, swing trading for short-term capital gains while having long-term investments for overall wealth growth.
See lessWhich Day is Best for Swing Trading?
Every Day is a Best Day If you Have a RIGHT STRATEGY You must realise that swing traders take every opportunity of the volatility, and be a day for the sellers market or the buyers market. If you become a seasoned investor then you will take the advantage of the resultant trading signals that swingRead more
Every Day is a Best Day If you Have a RIGHT STRATEGY
You must realise that swing traders take every opportunity of the volatility, and be a day for the sellers market or the buyers market. If you become a seasoned investor then you will take the advantage of the resultant trading signals that swing as per the market volatility.
So, you will be taking advantage of the swings that flow in your direction and also utilise the situations when the swing flow moves in an opposite direction to your stock positions.
For any prevailing stock market situation, you will be able to decide a day to be gainful in swing trading only after comparing your trade positions/trade plan with the trading signal patterns.
To check it, you must pick the best time frame daily to make precise calculations and decide if it to be a better trading day or not.
A daily time frame enables you to analyze the day’s dominating trend, and show up the possible key levels of the day’s stock market. Daily time frame is less prone to curve fitting, and it works better on the historic data which is more likely to work better on future data.
Expert swing traders consider a 4-hour time frame to be sufficient in understanding the daily trading patterns.
And, checking over the time frame less than 4-hour may not provide you the right output of the set objectives. Even if you do so, the results will display a noisy, erratic picture that may not be enough to show the true direction and volatility of the stock markets.
Therefore, if you treat the 4-hour time frame daily then the charts become a reference to analyse your positioned stocks for days, or weeks together.
Best Days for Swing Trading in a Week:
At the outset in the stock market, you will observe that the beginning of the week, Monday, Tuesday, is considered as buyers markets,
Wednesday, Thursday, the markets run stable and goes sideways (most of the time).
On Friday the markets gear up and volumes of sales go up and they do become sellers markets.
See less