What is Intraday Trading?
Intraday means the event which completes within 24 hours on the same day. Intraday trading is that kind of trading where a trader has to complete the buying and selling of shares or assets on the same day or within the same trading session. It is done using online trading platforms. For intraday trading, you need to set up an online trading account and follow the Most Successful Intraday Strategy.
Stocks are bought and sold in large numbers in a specified manner with the intention of booking profits in a day. It is one of the most successful tradings in the market. It has the potential to generate a good amount of profit with proper analysis and execution.
Best & Free Intraday Trading Tips for Beginners
Intraday trading is more risky than an investment in the regular stock market. Let’s talk about some of the most successful and free intraday trading tips to gain maximum results.
Top 5 most successful and free intraday trading tips and tricks you should know-:
- Avoid impulsive decisions
- Avoid the first hours of trading
- Trade-in different sectors and different stocks
- Buy limited or few shares having high trading volumes
- Do not focus to make so much money in a single day
1. Avoid impulsive decisions
One of the most important steps of intraday trading is knowing the price you want to invest and earn. You should have a rough idea about the optimum buying and target prices before trading.
2. Avoid first hours of trading
For taking early positions many traders purchase when the market opens in the morning. If you have done a proper search then only buy in the early morning or in the early hours of trading.
-the best time to purchase the shares in intraday trading is after 11-11:30 AM in the morning and
-the best time to sell the shares in intraday trading is before 1 p.m.
3. Trade in different sectors and different stocks
Many traders have the habit to invest in particular stocks. Not only this they mostly trade in few stocks.
4. Buy limited or few numbers of shares having high trading volumes.
All intraday traders purchases stocks for selling them to earn a profit on the same day. Trading volumes of shares mean the number of shares of a company traded in a single day.
5. Do not focus to make so much money in a single day
Traders who trade in a planned manner will always get great profit. So in our opinion, you should never invest your full capital at a time.
6. 100% Accurate Day Trading Strategy
It needs a lot of hard work, dedication and knowledge to be a successful intraday trader. The ratio of waiting and execution is 90:10 in day trading.
Therefore, we can say intraday trading can make a trader rich in less time if correct procedures and most successful intraday strategy are followed. It can be dangerous for new traders if they don’t follow it strategically.
Before we tell you about the successful intraday strategies, we would like to mention that none of the strategies are completely successful. Because strategies are always dependent on market conditions.
7 Most Successful Intraday strategies:
- Momentum Trading Strategy.
- Reversal Trading Strategy.
- Gap & Go Trading Strategy.
- Bull Flag Trading Strategy.
- Pull Back Trading Strategy.
- Breakout Trading Strategy.
- Moving Average Crossover Strategy.
1. Momentum Strategy
Successful intraday trading is all about momentum in stocks. Stocks move at the rate of 20 to 30% everyday. The main task is to find the stocks early and investing in them before others. Based on the speed of momentum, investors who invest in intraday trading can hold positions for a few minutes, hours, or for the whole day.
Momentum trading strategy is generally beneficial at the start of the day for when a sudden increase in trading volume occurs according to a news report. For identifying the momentum a trader is required to monitor the market and keep watch on the trends at the right time.
2. Reversal trading strategy
That is why investors or we can say intraday traders should be e flexible and follow multiple strategies.
Let’s talk about 100% accurate intraday trading strategies for beginners and active intraday traders.
It is one of the most controversial and difficult strategies for beginners as it is all about investing against the Trend. It is a process of identifying pull backs correctly along with its strengths. It requires full knowledge and understanding of the market and experiences. If we talk about a famous approach of reverse trading, it is ‘daily pivot’.
Traders always focus on the stocks that are either at extreme lows or at extreme highs having great potential to snap back
3. Breakout Strategy
The most commonly used and most successful intraday strategy is the Breakout strategy. It involves keeping an eye on when the stock prices rise above or fall below at a certain level resulting in the increase of trading volume.
The most important skill for Breakout trading strategy is quickness. It is one of the most important and most successful intraday strategies that does not require waiting because traders know whether the trade would work or not.
It is all about observations. If the price rises then the intraday trader enters and buys the stock. On the other hand, if the stock price falls then also the intraday trader enters and sells their stock.
4. Gap and Go Trading Strategy:
Next one of the best and successful Intraday Strategy is Gap and Go Strategy. Sometimes in the stock market stock opens at a gap from the previous day’s close. If it opens at a higher price than the previous day it is called a gap up and if it opens lower it is known as a gap down. Generally, the gap is created due to a new catalyst.
5. Flag Trading Strategy
Sometimes, in the last few days, the price of the stock rises exclusively high. Once the price reaches the peak a pullback starts in a diagonally symmetric way- giving the impression of a flag.
In the pull-back zone, both highs and lows are almost the same or parallel to each other. This one of the 100% accurate intraday trading strategies requires a lot of patience to form the flag and upper & lower trendlines. It allows the traders to generate profit before any other trend sets in.
6. Moving Average Crossover Strategy
All stocks have a moving average that pretends the trend of a stock price. It is more likely a price crossover strategy. Whenever the price of a stock goes above or below a specified moving average it signifies a potential change in the trend. When the price of the stock falls below the moving average, it results in a downtrend and if the price of the stock goes above the moving average it results in an uptrend.
Stock prices have both short and long-term moving averages.
When short term average passes above long term average it generally signifies an upcoming strong move and intraday traders buy. If the short-term average rashes below moving average then intraday trader tends to sell.
7. Pullback Trading Strategy
Mostly a stock follows the long-term trend. Several times, short-term Trend forms in the opposite direction of long term Trend. In the pullback trading strategy, traders generate profit by entering in a short pullback period. The most important step in this strategy is ensuring that the short trend is a pullback and not a reversal. This can be done by keeping a track of the previous day’s trading volumes.
In intraday trading, there is a saying that “Trend is your friend” which is right and you must follow it. In this strategy, strengths are sold and weaknesses are bought.
Thus, 7 different most successful intraday strategy are available for intraday traders which should be used in the right situation. Traders who understand and implement these 100% accurate intraday trading strategies are more successful than the traders who do not use them. New intraday traders should try different strategies. According to their experiences, they should choose the strategy which works well for them.