When the market opens, this strategy helps traders get the maximum benefit of the fierce action from the selling and buying orders in a massive quantity. Generally, the initial timeframe of 20 to 30 minutes trading range is considered the best intraday trading time as it is appropriate for the opening range breakout. In case you are looking forward to trading with this strategy, the market experts recommend beginning with the little Capital amount.

• Rules for Picking Stocks When Intraday Trading?
• currency trading technical indicators!
• citibank forex rates today.

The stock that you will choose should be within a range, basically smaller than the average daily stock range since the lower and upper boundaries of the range can be regarded by the low and high of the initial 30 or 60 minutes. However, the idea to go short or long is not that easy. First of all, you would have to understand the relationship between price and volume. These two factors should be in harmony. The volume is quite essential for every type of breakout that confirms the break out before entry. Hence, you can regard the high volume as the best indicator for intraday.

This is one of the best intraday strategies to get the maximum benefit. Before you start with day trading, keep in mind that everything here is related to momentum. Thus, your job will be to discover these moving stocks before they can make a big move and get ready to catch them as soon as the movement is made. In case, initially, you find this task tedious, you can use stock scanners to make the job easier.

With these scanners, you can seamlessly find moving stocks. The momentum trading strategy is generally effective at the beginning hours of the reading or during the time when news comes in, which can bring a massive volume of trade. In this strategy, the entire focus should be on stocks that have momentum and are frequently moving in one direction and high volumes.

However, as far as the intraday trading is concerned, being extremely cautious and knowledgeable make things work out for you. Keep in mind if you managed to yield impressive results in the first hour, step back from trying your luck for long. Get your benefits and walk out of there; or else you may have the risk of losing what you earned.

Best Intraday Trading Strategy. Your First Step to become a Trader.

Prepare yourself for the better and the worst. Learn, acquire knowledge, figure out more intraday trading tips in India and grow with every passing day to become an expert. All Rights Reserved. Search for Article. Talk to our investment specialist. How helpful was this page? Email optional.

Enter value of expression. Market conditions play an important role in ensuring the success of a strategy. Hence, intraday traders must be flexible and practice multiple strategies while trying to adjust to multiple scenarios. Here are some popular intraday strategies:. Success in day trading can be attributed to investing in stocks that have momentum. The trick lies in finding them early and investing in them before they make the move. The movement of stock prices can be in either upward or downward direction.

Based on the speed of movement of the security, traders can hold positions for minutes, hours, and even the entire day. This strategy is usually effective at the start of the trading day or when a news report results in a sudden increase in the trading volume of the security. Identifying the momentum requires traders to constantly monitor the markets and catch uptrends at the right time.

Reversal trading or trend trading or pull-back trading is a highly debated trading strategy for beginners since it talks about investing against the trend. This is a difficult strategy since it requires the investors to identify pullbacks correctly along with their strengths. This means they will need a detailed understanding of the market and experience. Traders look for stocks that are at extreme highs or lows with great potential to snap back.

As soon as the price trend reverses, they take long or short positions to benefit from the price movement. This is one of the most commonly used day trading strategies that involve identifying times when the stock price rises above or falls below specified levels with an increase in the trading volume. If the price rises above the specified level, then the day trader enters into a long position or buys the stock. On the other hand, if the stock price falls below a specified level, then the day trader enters into a short position or sells the stock.

This strategy is based on an observation that once the stock price trades beyond the specified levels, there is an increase in volatility and prices trend usually in the direction of the breakout. Timing is of the essence here is most traders look for such stocks and the price rises only till the time that stocks are available for purchase. If the price opens higher than the previous day, then it is called a gap up and if it opens lower, it is called a gap down.

In most cases, the gap is created due to a news catalyst. They make small profits quickly without taking high risks.

Recent Posts

Imagine a stock whose price had risen explosively in the last few days. Once it reached a peak, a pullback started in a diagonally symmetric manner — giving the impression of a flag.

1. Intraday Trading Techniques That Work;
2. how much money is needed to start trading options!
3. Best Intraday Trading Strategies 2021.

In the pullback zone, the highs and lows are almost parallel to each other. This requires traders to remain patient and wait for the flag to take shape.

Rules for Picking Stocks When Intraday Trading

Based on the highs and lows, they need to identify upper and lower trend lines, spots of entry on the higher and lower side, and stop-loss points. This allows them to generate profits before another trend sets it. A stock usually follows a long-term trend. However, there are times when a short-term trend develops in the opposite direction of the long-term trend. In the pullback trading strategy, traders enter during these short pullbacks and generate profit. It is important to ensure that the short-trend is a pullback and not a reversal.