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Most Effective Intraday Trading Strategies

Most-Effective-Intraday-Trading-Strategies

Most Effective Intraday Trading Strategies

 

There are thousands of Trading Planning and Strategies for traders to make money in the latest phase of the market. However, not all are too complicated for beginners to implement and earn.

 

In this blog, we will cover some of the Intraday Trading strategies for beginners. 

 

What is Intraday Trading?

 

Trader’s profits depend upon various objectives. One such objective may be a long-term investment which is a gradual process, yet may produce high returns. 

 

The other objective includes a short-term strategy that involves trading with quick gains. One of the important methods is intraday trading.

 

Buying and selling stocks on that same day before the market closes refers to Intraday trading. 

 

This type of trading offers many benefits such as the ability to trade often, frequent opening and closing of positions, and the ability to capitalise on market movements quickly. 

 

However, intraday trading also comes with a number of risks. 

 

  1. Intraday traders can suffer from emotional swings. These swings can lead to poor decision-making and bad trades that could have been avoided if they had been more patient. 
  2. Intraday traders may not have time to fully analyze their trades because they are constantly making new orders. 
  3. Intraday traders may be trading when they are tired or distracted because they are out at the market or being rushed to get something done.

 

 

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Some Most effective Intraday Trading Strategies

 

Momentum Strategy

 

Momentum strategy is one of the most popular trading strategies among traders. Momentum is a tendency to move in the same direction as others. For example, if you trade stocks, then momentum will be up and down. The price moves up, then down and then back up again. Momentum can be very powerful in Intraday Trading .


 

Breakout Strategy

 

Breakout strategy is similar to momentum strategy but it applies when you want to profit from a trend that has just started or had just started previously (breakouts). 

 

It involves taking advantage of a trend by buying at low levels and selling at higher levels when there is a breakout. 

 

This type of trading strategy works well on intraday charts because there are often many breakout points where prices may change direction quickly based on supply-demand imbalance between buyers and sellers who want to take advantage of the trend before it becomes obvious to everyone else (bulls).

 


 

Reversal strategy

 

The reversal strategy is a trading strategy that uses the previous days high to trade. It is based on the idea that when the market moves up and then back down, it will more likely than not move back up again. 

 

The reversal strategy can be used in any market condition, but works best with rising markets or declining markets.


 

Scalping Strategy

 

Scalping is a trading strategy that involves buying and selling small amounts of a security. It's used to make profits in volatile markets, such as stocks and futures. Scalping can also be used to limit risk or minimize losses when trading.

 

There are two different types of scalping strategies:

 

Long-term scalping – This type of scalping involves buying and holding a security for days or weeks. 

 

The idea behind long-term scalping is that the investor will be able to make money by holding onto their position until the market reverses itself. When this happens, the investor will be able to sell at a higher price than they bought at.

 

Short-term scalping – This type of scalping involves buying and selling securities within minutes or hours. 

 

A short-term scalper may have good timing with their trades and use technical analysis tools like moving averages, Bollinger bands and Fibonacci retracements to help them predict which way prices will move next.


 

Factors of Intraday Trading

 

Intraday trading Strategies depending on the important factors are not rocket science to go with. One needs to keep on some parameters which if met along can be very beneficial to one for intraday trading.

 

Following are some steps and the parameters to deal with stocks for intraday trading:

 

  • Liquidity- One of the factors that are important in choosing shares in Intraday trading. While trading in commodities (liquid) like Gold, Crude Oil etc should be traded and can be very beneficial for the trader.

 

  • Volatility- The market is getting volatile day by day as the trader's quick returns are highly recommended. Keep in mind that high-value stocks must always be recommended to do intraday trading. 

 

  • Patience- In hope of making money all at once is highly NOT recommended. One has to grind himself in making patience out of him the most.

 

  • Stability- One thumb rule is that one should always be stable in terms of trading. Practicality based on logic should always be a big reason for decision-making.


 

Conclusion

 

There are ample strategies which can amplify your trading but these are the most important and commonly used ones. 

 

The key to successful trading is to be patient, and watch the market trend so as to hammer at the right time to trade. It is a personal recommendation from the experts to keep practising daily to ace the world of Trade.

 

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