5 Best Strategies for Intraday Trading | Espresso

Best Intraday Trading Strategies

Day trading for beginners could be tough. However, if you are a novice in trading and if you are aware of a few intraday trading strategies, you may find it easy to gain profits.

OPEN FREE ACCOUNT

IN 15 MINS*

Even for the expert traders in intraday trading, experiencing market volatility is common. Since, as an investor, you need to complete the transaction in a single day, the risks are more. On the other hand, if you know the tricks well, you can also make great returns.
Also Read: 5 Essential Intraday Trading Tips and Tricks

So, in order to ensure that you begin your intraday trading with a good knowledge of this practice, here is a simple list of the best intraday trading strategies that you should be aware of.

Top Intraday Trading Strategies

1. Momentum Strategy

The momentum strategy is all about investing in the right momentum and in the right direction. As an investor, you need to choose the right stock for investing properly before making a momentous change in share market trends.

The selection of stocks depends upon the news reports regarding the same that can either cause the graph to go up or down. So, as an intraday trader, your role should be to study these news pieces before investing.
Know More on How to select Stocks for Intraday?

You should also remember that the data will either go up or down. And based on the speed of the stocks as per the market decisions, investors can hold the security or stocks for minutes, hours, or the whole day.

2. Breakout Strategy

Timing is a crucial factor in trading. More so, in intraday trading, the investors need to be aware of the power of the right timing. In the breakout strategy, time plays a very important role. It comprises identifying the brink where the stock prices are rising or falling below at a certain specified time.

The investors can buy the stock if the trend soars the prices above the brink point. Similarly, when the prices plunge down the brink point, the investors can sell the stocks. Simply put, the breakout strategy is all about the fact that when the prices of the stocks cross the brink point, the trend will be continued, and the market will be more volatile in nature.

3. Reversal Strategy

The reversal strategy is considered to be a high-risk intraday trading strategy, and hence, it’s not appropriate for beginners. According to this strategy, the investments are made against the trends of the market.

With the proper evaluation, the trading often snaps back for making a good gain. However, for intraday trading beginners, this strategy isn’t recommended as it needs a lot of knowledge and experience about the market. Also, this one’s pretty difficult for the investors as they need to accurately evaluate the shortcomings and the strengths in their trading strategies.

4. Gap and Go Strategy

Mostly, it’s quite usual to find stocks that may not have any pre-market volume and which may open at a gap from the trading of the past day. When the gap opens higher than the trade from the previous day, it’s termed as a gap up.

And when it opens up lower, it is termed as a gap down. Such situations generally take place when the market news behaves as the catalyst. If you are looking for quick profits with fewer risks, you may go for this strategy.

5. Moving Average Crossover Strategy

Stock market trends are the best indicators for guessing the way in which the market will perform. However, there should be a variant in this, and one such variant is the moving average crossover strategy.

So, when the stock value exceeds the moving average, it’s called the uptrend. And when the stock values fall below the moving average, it’s termed as the downtrend. So, the key to gaining success in this particular strategy is to pick the stocks at the right moment.

Conclusion

For intraday traders, there are different intraday trading strategies. However, the above-listed ones are the best trading strategies that every intraday trader needs to be aware of. Always remember, the key to a successful intraday trading session is to be able to quickly invest and keep a tab on the market trends. And the final step includes deciding the trade at an accurate time. All the best!

 

Share Market Knowledge Centre

Related Articles

  • Most Accurate Intraday Trading Indicators

    The stock market is volatile, especially if you are involved in intraday trading. However, it is the volatility of the stock market that makes it so lucrative for investors. Sudden peaks can result in significant profits, provided you follow intelligent and effective intraday trading strategies.

    ...Read More
  • 3 Important Exit Strategies for Day Traders

    Traders usually focus a lot on the perfect time for entering a trade. However, they often miss out on deciding the right time to exit a trade. It’s true that deciding on a proper entry time is important; however, picking the right exit time can determine the real success of a trade for the traders.

    ...Read More
  • 5 Rules for Selecting Stock for Intraday Trading

    Intraday trading is the most common form of trading in the stock market. Here, traders open and close the trades within one day. So, the traders who enter and exit the trading platform within one trading day are known as intraday traders.

    ...Read More

Frequently Asked Questions

A sell signal in intraday trading is a condition or a measurable level at which the investor is warned to sell an itemised stock that can have a huge impact on its overall performance.

Trend trading is a particular style of trading that tries to capture the gains when the price of a stock moves in a continuous direction, termed as a trend.

The breakout intraday trading strategy is believed to be the easiest one. Here, the trade needs to be done quickly, and the trader should watch the market making gains.