Best Intraday Trading Strategies and Tips

Intraday trading offers traders a quick option to make a high return on their investment. Unlike long-term trading, traders and investors don't have to hold these stocks for long but trade them in the same trading session. The returns are made in a day by buying and selling the stocks on the same day.

 

As attractive as it may seem, intraday trading is associated with market risks. This is why it is advisable to exercise caution before investing. Explore the best intraday trading strategies and tips to reduce exposure to risks and make high returns.

0:00

Topics Covered

  • What is Intraday Trading?
  • Best Intraday Trading Strategies
  • Best Intraday Trading Tips
  • Conclusion

What is Intraday Trading?

Intraday trading refers to the method of buying and selling securities listed on a stock exchange on the same day (single trading session). This form of trading aims to reduce risks and generate financial gains on securities purchases.

 

An investor must possess the best intraday trading strategy in order to realize sufficient returns. This is important because intraday trading involves risks like market volatility, emotional risk, and too much exposure. The top intraday trading tips for beginners help you effectively handle these risks.

 

Best Intraday Trading Strategies

Here are the best intraday strategies you can follow as an investor to reduce risks and increase returns:

 

  1. Moving Average Crossover Strategy

A moving average crossover takes place when two distinct moving average lines form a crossover. There is a technical intraday indicator called a moving average crossover that guides you on when to enter and exit. The crossover technique may, at times, fail to get appropriate tops and bottoms because moving averages are a form of a lagging indicator.

 

  1. Reversal Trading

Reversal Trading is also called Pull Back Trading involves using matters to bet on the stock against the movement and hoping to make a reversal. In reversal intraday trading strategy, the trader searches for those stocks that reach either very high or very low levels.

 

They are capable of experiencing path reversal relatively often. Every time the movement of the security reverses, a stop is placed and traders wait for the securities to reach the maximum oscillation. A trade is conducted when the reversal value reaches the trader’s assumed boundary.

 

  1. Momentum Trading Strategy

Momentum trading leverages the strength of price fluctuations as a foundation for establishing positions. Finding moving stocks that exhibit daily swings is the foundation of intraday trading methods. Approximately 25–35% of equities exhibit volatility. These stocks are located using stock scanners.

 

Best Intraday Trading Tips

Following are the best tips for intraday trading you can follow:

 

  1. Choose Liquid Shares (Stocks)

One of the most successful intraday trading tips you must follow is always choosing liquid stocks during intraday trading. It is because these stocks are high in volume therefore they are easy to sell. You also have to ensure that you select two or three big-cap shares that are also as liquid as can be.

 

  1. Utilizing Stop Loss

Stop Loss is used to automatically execute the share selling if the price drops to a certain level. You should calculate the stop loss to avoid further losses that may result from a drop in the stock prices. Thus, it's critical that you determine the maximum amount of loss you are willing to accept in the event that the trade deviates from your position. This minimizes your losses and serves as a safety net.

 

  1. Book Profit when the Goal is Reached

The adversary of all intraday traders is greed. The reason for this is that the market may quickly change its mind in a matter of minutes, particularly if it is extremely volatile. The secret is to avoid being greedy after achieving that goal. If the stock price has hit your objective, don't hold off on buying more until it does.

 

  1. Don't Go Against the Market

Predicting the moves of the market is almost impossible. Remember that the stock price does not increase since the market chooses to disagree. Ultimately, you should avoid being too attached to your analysis. Sell and get out of the market as soon as it reaches your stop-loss level if the market does not back up your analysis. 

 

  1. Time is of the Essence

In intraday trading, time is a critical aspect in determining profits. Avoiding taking a position within the first hour of trading is one of the finest intraday trading strategies. This is due to the hour's propensity for significant volatility.

 

This causes a great deal of hurry and bustle during the opening hour of the market, which in turn causes significant price changes. Taking an intraday position between noon and one PM is preferred by several experts.

 

Conclusion

For an investor or trader, Simulators or a free demat account are essential for practicing day trading, they should be able to identify which stocks are suitable for trading in the day. For this reason, people are often unable to make profits due to improper choice of stocks for sale. You can follow the intraday trading strategies and tips to make the most of your intraday investment.

Open a Free
Demat Account

To avail lucrative returns on your investments,
Almondz

india-svg

+91

Enjoy Zero Brokerage on
Equity Delivery

Get the Link to Download the App

india-logo

+91

google-play-imgapp-store-img

heart_svg

Built with Love for Indians
who want to invest & trade

Almondz Trade is a leading stock broker in India. We provide you with an online trading and investment platform that provides direct accessibility to shares, IPOs, futures and options etc. With Almondz Trade, you will get a free demat account, and a Free Trading Account that facilitates the buying and selling of stocks, bonds, and other securities. Every online trading and investment platform in India is regulated by the Securities and Exchange Board of India (SEBI). Almondz Trade offers a comprehensive suite of tools and resources to empower individuals to make informed investment decisions. We cater strategies and diverse investment options to navigate the financial markets with confidence. In the dynamic landscape of finance, online trading, and investment platforms have democratized access to the stock market, individuals to take control of their financial futures.

 

In India, where the appetite for investment opportunities is burgeoning, these platforms have become instrumental in facilitating seamless transactions, offering a plethora of investment avenues, and providing valuable resources for both novice and seasoned investors alike. From beginner-friendly to advanced-level, Almondz Trade caters to the needs of all generations recommending investment tips & strategies on wealth building. Online trading in India is a popular channel that may yield significant profits. Traders can take advantage of a variety of trading opportunities viz. investing in several financial assets, including stocks, currencies, and IPOs. With Almonds Trade, it has become easier for traders to execute the positions.

 

Almondz Trade is a stockbroker in India providing investors with uninterrupted access to stock markets around the clock, from the convenience of their homes or workplaces. Furthermore, we streamline transactions by simplifying the process of buying and selling stocks. Our investment platform does not levy any commission thus reducing the expenses of the investors. In addition, we also furnish complimentary educational materials to facilitate a deeper comprehension of markets and the development of effective investment strategies by embarking the investors and traders on how to use demat account. Almondz Trade being a progressive online trading and investment platform in India presents a compelling opportunity for making well-informed financial decisions, aiding in portfolio diversification while simultaneously reducing costs.

TradingViewTradingView

Almondz Securities has partnered with TradingView for its charting solution. A comprehensive trading and investment platform, offering an exceptional charting experience. It empowers users by providing global market insights and analytical tools like Stock Screener and Economic Calendar .

Disclaimer|Investor Charter|Investor Grievances / Complaint|Cookies and Tracking Technology|Risk Disclosures On Derivatives|Important Client Information

Other Links : Upcoming IPO|BSE Holiday|NSE Holiday|E-Voting

Attention Investors :

  • Prevent unauthorised transactions in your account → Update your Mobile numbers/Email IDs with your stock broker / DP. Receive information of your transactions directly from Exchange / Depository on your Mobile/Email at the end of the day.
  • "KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc.), you need not undergo the same process again when you approach another intermediary."
  • "No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries for refund as the money remains in investor's account."
  • Stock Brokers can accept securities as margin from clients only by way of pledge in the depository system w.e.f. September 1, 2020.
  • Pay minimum 20% upfront margin of the transaction value to trade in cash market segment.
  • Update your mobile number & email Id with your stock broker/depository participant and receive OTP directly from depository on your email id and/or mobile number to create pledge.
  • Please refer to the Exchange's Frequently Asked Questions (FAQs) issued vide circular reference NSE/INSP/45191 dated July 31, 2020 and NSE/INSP/45534 dated August 31, 2020 and other guidelines issued from time to time in this regard.

Almondz Global Securities Limited | CIN: L74899DL1994PLC059839 | Tel. No.: 011-43520222 | Website: www.almondz.com | Email: info@almondz.com | GrievanceEmail: helpdesk@almondz.com | SEBI Reg. No. INZ000213936 | Member: NSE: 12252 | BSE: 3055

 

Disclaimer: Investments in securities, commodities, IPOs, and mutual funds are subject to market risks. Please read all related documents, including the Risk Disclosure Document (RDD), carefully before investing.

 

Declaration: We do not share client details with any third party, nor do we sell any tips or recommendations. In case anyone calls you posing as an Almondz (Almondz Global Securities Limited) executive, offering/inducing you to trade, please send us an email at helpdesk@almondz.com.


© 2024.

Powered by

All rights reserved.