Do you want to know What Intraday Trading?
Here, You will learn everything about Intraday Trading?
Why do Many Intraday Traders Fail?
What Exactly is Intraday Trading?
In-depth Knowledge of the Instruments Available in Intraday Trading
A Good Intraday Trading System.
- 1 Best Trading Strategies Used In Stock Market
- 1.1 Momentum Trading Intraday Strategy
- 1.2 Gap Up and Gap Down Intraday Trading Strategy
- 1.3 Opening Range Breakout (ORB Strategy for Intraday Trading)
- 1.4 123 Reversal Pattern Intraday Trading Strategy
- 1.5 Moving Average Crossover Strategy for Intraday Trading
- 1.6 Flag Pole Breakout Trading strategy
- 1.7 Pull Back Trading Strategy
- 1.8 Scalpers / Scalping Trading
- 1.9 Pivot Point Trading Strategy
What Is Intraday Trading?
Every trading day, Intraday trading is a War. It’s a war between bulls and bears, and you must choose which side you support. The nicest thing about this war is that you can switch sides, which is why so many of you are failing to recognise the trend.
Buying and selling stocks during the same trading day is known as intraday trading. Stocks are purchased for the goal of profiting from the movement of stock indices, rather than for the sake of investing. As a result, price volatility in stocks is used in order to profit from stock trading.
For intraday trading, you’ll need an online trading account. You must mention that the orders are for intraday trading while executing intraday trading. Intraday trading is referred to as such because orders are squared off before the end of the trading day.
Example of Intraday Trading
Suppose a trader buys 100 shares of HDFC Bank on particular day. The same trader then sells the shares of the company on the same day before the closure of the markets time. Here, the trader squares off his position in the same trading session (Same Day). This is called intraday trading.
Best Trading Strategies Used In Stock Market
Momentum Trading Intraday Strategy
Intraday trading methods are based on identifying equities that fluctuate on a daily basis. Around 25%-30% of equities are subject to swings. Momentum is the term for this variation. To locate such stocks, stock scanners are utilised. These stocks have a tendency to rise over the Moving Average in heavy volume without encountering any opposition. Momentum in stocks can be generated by a catalyst, such as earnings, or it can be developed without any fundamental support.
A technical breakout is what this is referred to as. Traders that use the momentum trading method look for equities that move in a single direction with significant volume. In a momentum trading technique, the profit-to-loss ratio is 2:1.
The momentum method is most effective during early trading hours or when there is a high volume of trades. This method might make you a lot of money if you are aware during the opening trading hours.
Gap Up and Gap Down Intraday Trading Strategy
Gaps are the focus of this intraday trading method. Gapers are areas on a stock chart when no trades have been performed. Gapers are the term for these spots. These gaps can be caused by a variety of events, including a change in the trader’s trading technique, a news increase, or an earnings announcement. When there is a demand and supply gap, gaps arise more frequently during opening hours.
Traders take advantage of these gaps to profit before they get balanced. The gapper strategy involves finding a gapper and taking a position in the direction of the minor trend. When gaps appear in the opposite direction of the minor trend, the other direction with a tight stop loss is taken.
Opening Range Breakout (ORB Strategy for Intraday Trading)
Opening Range Breakout (ORB) is a popular trading method among both professional and novice traders, and it has the ability to offer high accuracy when applied properly with indicators, stringent restrictions, and a strong understanding of the overall market mood. Only intraday trading is possible with this strategy.
Traders all over the world use ORB trading in a variety of ways. Some traders wait for a substantial breakout from the opening range before trading, while others trade right away. The trades’ time window varies from 30 minutes to 3 hours.
After spending time monitoring and trading Indian markets, I came up with the following technique that works well in our markets. Because the strategy below combines a scalping and a trending technique, it is feasible to profit from fast moves and trending markets with multiple lots of trades.
123 Reversal Pattern Intraday Trading Strategy
Traders that use the reverse intraday technique look for equities that are trading at extreme highs and lows. They have a decent possibility of reversing their fortunes. A stop is set as soon as the security’s movement reverses, and traders wait for the securities to reach their maximum fluctuation. When the reverse value reaches the trader’s predicted limit, the trade is performed.
Moving Average Crossover Strategy for Intraday Trading
This is a price crossover approach that signals a route reversal when the price of the stocks moves above or below the moving average. When the price of a stock moves from one side of the moving average to the other, you can observe the shift in momentum.
A downtrend is indicated by a crossover below the moving average, whereas an uptrend is indicated by a crossover above the moving average. This is one of the most effective intraday trading strategies.
Flag Pole Breakout Trading strategy
When a strong price movement occurs in one direction, a flagpole is formed. When the resistance line is broken, a new movement begins, and the stocks advance. At first, the bull flags are aggressive. This is because it causes breakout and blindsides the bear. The bull flag indicates a strong price advance in one direction followed by a retreat in such a way that a parallel high and low pattern is formed. The construction of the top and lower lines, as well as the construction of the bull flag, takes a long period.
Pull Back Trading Strategy
When there is movement in the opposite direction of a long-term trend, it is called a pullback. When a trader follows the trend, the pullback method protects him from losing money. A trend reversal should not be confused with a downturn. It is said that the pullback strategy buys weaknesses and sells strengths. Just after the breakout is a good time to buy a pullback.
Scalpers / Scalping Trading
Scalping is a well-known Forex trading strategy. The focus of this technique is on tiny price movements. Because the trade period is short, you must be precise with your timings. It is a strategy that is based on taking risks.
Scalping is a trading method that involves taking small profits on a regular basis. The main goal is to make several transactions, which requires the ability to make quick selections. The strategy’s idea is that if the transaction moves 2–3 points against you, you should exit. Ensure that you have little losses and small earnings that add up to a significant profit. You could increase the size of your trading account from tens of thousands to hundreds of thousands of dollars.
Pivot Point Trading Strategy
In key support and resistance level situations, a pivot point strategy is advantageous. In the Forex markets, this method is effective. It can be used as an entry strategy by range-bound traders, while breakout traders can comprehend breakout levels.