Before we get into the strategies to be profitable in intraday trading, here is a basic mantra; Focus on reducing costs to the bare minimum. Remember, a rupee saved is a rupee earned in intraday trading. Making profits everyday in intraday trading may be a complete misnomer because that is just not possible. However, it is possible to be profitable more often by following a basic structured approach to intraday trading.
Successful Intraday Trading Strategies
Here are some successful intraday trading strategies.. Using supports and resistances of stocks to trade intraday In technical analysis, supports are price levels where a stock shows the tendency to take support and bounce back.
When you see this happening multiple times, it is a sign of the stock taking support and it is a buy signal. Similarly, if the stock is consistently hitting an upper level and reverting, it is a sign of a short term top.
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You can use that level to sell the stock. This can be your starting point for intraday trading. Another way to make profit in intraday trading is to identify breakouts.
When a stock breaks out of a range after a long time supported by volumes, then it is a signal to trade in the direction of the breakout. That means you must buy in case of upward breakout and sell in case of a downward breakout. How do you distil a false breakout? A breakout supported by spurt in volumes is more reliable for an intraday trader. This is again part of your charts which you can use to make profit in intraday trading.
In fact, one way to learn intraday trading is to watch for higher tops and lower bottoms in a chart.
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They can be seen with the naked eye if you take a slightly longer chart. If the stock price chart is making consistently higher tops, then intraday traders must use every dip to buy. The whole idea to constantly keep scalping in the market for small profits. This strategy is a very common method of trading while trading commodities.
Strategies
This kind of trading is generally done by high-frequency traders in the market. The overall technical and fundamental setup does not have a major bearing on this trade. Price action plays a very important role while selecting the trade for scalping. The stocks or commodities chosen for purpose of scalping should be liquid and volatile.
Intraday Indicators
And one important thing to always keep in mind is to have a stop loss for every trade. One should not let the position drift away. The scalping strategy is best suited when the market is stuck in a tight range. Liquidity and tighter range are two friends of scalpers. Img 3: 15 Mins chart of TCS source: www. If we look at the image above, the market is stuck in a tight range and it provides a great opportunity for scalpers.
This Strategy can also be called as the moving average crossover strategy. This is generally a trend reversal strategy in the market. When the price of the underlying asset goes above or below the moving average, it generally signals a change of momentum in the market. When the crossover happens from bottom to top, it is called Bullish crossover and when the crossover happens from top to bottom, it is called a Bearish crossover.
And when the market starts trading over the moving average, the dips are being bought back in the market. Therefore, when the market is trading over MA, it is advised to go long and when the market is trading below MA, it is recommended to initiate a sell position. In this article, we covered the four best Intraday Trading Strategies for beginners.
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Here are a few key takeaways from this post:. I hope it was useful for you. Happy Trading and Money Making. Connect with Hitesh over Twitter here! Your email address will not be published. Share Tweet Pinterest LinkedIn 51 shares. Table of Contents. Quick Note Looking for the best Demat and Trading account to start your stock market journey? Click here to Start Now!! Gap Trading Strategy 5. Binary Options Trading Strategy 6. Commodity Trading Strategies 7. Best Trading Strategy 8. Short Term Investment Strategies 9.
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