What are some good intraday trading strategies?


What are some good intraday trading strategies?

What are the intraday trading tips for beginners?
Intraday trading tips, basic rules and strategies:
Below are the Intraday Trading Tips for beginners:-
  1. Breakout: Intraday trading runs mostly on intraday chart patterns. One should follow basic technical while doing intraday trading. If any stock is breaking it’s resistance, you can enter in buy position with appropriate stoploss, same way if any stock is breaking its support, you can sell it with appropriate stoploss. Stoploss can be pivot point or its previous close.
  2. Calculating Pivot Points: It is also called point of rotation. To calculate pivot points you can use previous day’s high + low + closing price divide by 3. You can calculate resistance and support levels after finding pivot points. First resistance is 2*P-Low.Second Resistance is P+ (R1-S1). First support is 2*P-High. Second Support is P-(R1-S1). Basics indicators and charts have to be followed for Intraday Trading.
  3. Limit your losses: Stop Loss controls risk of your capital. In a short position you can place a stop loss above a recent high, for long positions you can place below a recent low. Also you can change depend on volatility. Stop Loss has to be placed especially if you want to make good profit in Intraday trading by reducing loss.
  4. Risk reward ratio: Traders and beginners must understand appropriate risk reward ratio. Find stocks that provide adequate risk reward ratio of 3:1 which is beneficial for making profits. This is one of the best intraday trading tips for beginners.
  5. Trade with Market Trend: Most Important rule for Intraday Trading is to go with Market Trend. As if market is up then try to make buy position and if market trend is down then try to make a short position.
  6. Risk involvement: Intraday trading is completely risky so if any person is coming with only profit expectations or with sentiments, he/she should not trade because market will never understand your emotions. Intraday trading is a technique which can be learnt and improved day by day so you have to keep on learning every day.
  7. Stock selection: Stock selection is most important part in intraday trading so you have to choose stock very wisely.
  8. Risk Management: Intraday trading involves high risk which can give complete or partial capital loss so there should be risk calculation like 2 to 4% of risk of entire capital in a single trade. Because if your trade goes in to loss, you don’t lose more than that.
  9. Don’t borrow money: Never ever trade in stock market with anybody’s money. Yes this is most important while trading because I have seen many people who takes personal loan or borrow money from someone and regret after losing that money. You should trade with your own spare money only.
  10. Keep adequate capital: I have seen many people who make loss just because they don’t have sufficient capital to survive in market like many people trade 5 lots for Intraday in 1 lac capital. I don’t recommend this because sometimes you may get profit but it’s purely a gambling to trade like this. Always put sufficient capital to trade as per NSE margin guidelines and also maintain MTM so that you don’t have to book losses.

Comments

  1. rohan nayakMarch 2, 2022 at 1:16 AM

    I really appreciate your work which you have shared here about the Business.
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