What are the best strategies for Intraday Trading?

Posted by Saurabh Chaurasia on

Best Intraday Trading Strategies

Many investors feel that Intraday trading needs a lot of action. However, the truth is that only 10% of the action is needed. The remaining is just sitting and watching. Day trading can be profitable if an investor has the patience to go through the price fluctuations without getting carried away. But, for beginners, it can be high-risk if they approach it without any strategy. Here are some famous intraday trading strategies that can help to approach it in a structured format. In the stock market, the Momentum trading strategy is the most popular strategy. It is usually effective in the daytime when the news report results in an immediate increase in the trading volume.

To identify momentum, a trader has to monitor the market and catch the uptrends at the perfect time. Reversal trading, which is also called pull-back trading is a very talked about strategy as it says to invest against the trend. In this option chain strategy, investors must identify pullbacks along with the strength. So a beginner is skeptical about it as it requires a detailed understanding of the market. Investors need to do an OI analysis while using pull-back trading.

One of the most commonly used strategies is the Breakout trading strategy! Here an investor identifies the stock prices rise above the specified level with a  rise in trading volume. If the price rises, the day trader buys the stock and vice versa. Timing is an essence in Breakout trading strategy. Gap and Go trading strategy is a strategy where stock does not have much pre-market volume and opens at a gap from the previous day's close. If the stock price opens higher than the previous day, it is called a gap up and if it opens low, it is called a gap down. Mostly, the gap is created due to news sources. Day traders look for stocks that have decent pre-market volumes and make small profits without taking any risk. The above-mentioned strategies can be used effectively by using charts. Day trading requires awareness of market trends and external events. Traders must use different strategies and see which works well for them.