Free Intraday Tips

Free Intraday Tips

Free Intraday Tips.

Traders enter into the market for different purposes.

One may be a long-term investment which is a gradual process, yet may produce high returns.

The other can be a short-term strategy which includes trading with quick gains.

One such method is intraday trading.

Free Intraday Tips
Free Intraday Tips.

It is a well-known fact that most intraday traders don’t make money in the market.

There are possibilities that one day they book profit and the very next day they can bear a loss.

It may be because the market is recovering or they have predicted it wrong.

If you want to stay in the market for a long time than it is very essential to understand the understand the fundamentals of intraday trading.

Free Intraday Tips

In the following paragraphs, I will outline the basic guidelines for intraday trading.

Intraday trading involves buying and selling of securities on the same day.

The intraday trader doesn’t carry any overnight positions and he will square off all his positions on the same day whether at profit or a loss.

Intraday trading refers to buying and selling of stocks on the same day before the market closes.

If you fail to do so, your broker may square-off your position, or convert it into a delivery trade.

Ex: Indian Stock Exchange is open from 9.15am to 3.30pm.

Free Intraday Tips
Free Intraday Tips.

The trader who plays the only intraday can take his position at any time of the trading hours and can square off the position at any time in the same day.

Analysis of the charts and observing trends and indicators is always worth reading whether you are an experienced trader or a beginner.

The intraday trading is a one day game.

The trader makes the strategy for buying or selling the stock on the same day.

Thus the traders take the benefit of the rising and falling market in a day.

When the trader expects the stock is having uptrend today then the trader would buy a lot of securities first.

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Free Intraday Tips

After that, the trader will sell it on the same day.

The reverse, called short-selling, can also happen.

Traders use short selling strategy to take the benefit of the falling market.

This is when they borrow shares and sell it in the market.

Once the price falls as required, the traders buy shares at the lower price and then return them to the lender. Best Digital Marketing Course in Indore.

When you’re buying and selling of stocks within the same trading day, you’re indulging in intraday trading.

In this course of action, stocks are purchased with the aim of earning profits and not with any objective of investment.

Free Intraday Tips
Free Intraday Tips.

This is done by harnessing the movement of stock indices, which means that the varied prices of the stocks are harnessed in order to earn profits from the trading of stocks.

To participate in Intraday trading, an online trading account must be set up with specific orders which are explicit to intraday trading.

These orders are squared off before the trading day ends.

People who succeed at day trading three things very well:

  • Firstly, they identify intra-day trading strategies that are tried, tested.
  • Secondly, they are 100% disciplined in executing those strategies.
  • Further, they stick to a strict money management regime.

Free Intraday Tips

There are various strategies that traders follow to find out what is the right price for entry and exit from a stock.

They use a combination of resistance and support prices of a stock to decide when to buy and when to sell a particular stock.

Generally speaking, if the share price is above the base price one should buy with a target of selling at resistance levels.

Further, if the share price is below the base price one should sell with the target of buying at support levels, where base price is the average of high, low and closing price of the stock.

Free Intraday Tips
Free Intraday Tips.

Suitability of Intraday Trading:                                         

  1. High leveraged traders who don’t want to carry positional risk.
  2. Active traders who seek to trade the opportunities.
  3. Disciplined traders who follow strict day trading strategies.
  4. Traders who want to benefit from Volatility.
  5. Event-Based Trading.

Intraday trading refers to buying and selling of stocks on the same day.

It is done using online trading platforms.

Suppose a person buys stock for a company, they have to specifically mention ‘intraday’ in the portal of the platform used.

Free Intraday Tips

This enables the user to buy and sell the same number of stocks from the same company on the same day before the market closes.

The purpose is earning profits through the movement of market indices.

It is also referred to as Day Trading by many.

When you are going for the stock market investment, you can do it in two different ways.

Either you can opt to play intraday or just go for the long-term investment that is delivery based.

The game of intraday trading gets itself done within a day typically.

So, it means you have to sell the stock you purchase on the same day and that is before the closing of the exchange.

Even if you do not sell the stocks by yourself, they will automatically square off before the closing of the exchange.

In case of delivery based investment or long-term investment, you can sell the stocks as and when you wish to sell or buy them.

Both of these types of stock trading has its pros and cons.

Free Intraday Tips
Free Intraday Tips.

Chart reading is a skill

But don’t get me wrong, chart reading is a definite skill and if you want to be a good day trader, then you will definitely need to put in some serious screen time.

It takes a lot of practice to become adept at reading charts and I believe the most important aspect of this is watching how the charts react to certain events.

This is what I have had the most success with during my time, and in my mind, this is the key to predicting future price moves.

Free Intraday Tips

You are probably thinking:

“How the hell I will get to know the right intraday trading strategies that will actually work positively?”

And Are there some day trading rules that will help me to trade forex, commodities, stocks?

What you need to do is, just relax first.

Now go through the strategies I have mentioned for you. It will help you with how to tackle marketing even and odds.

By following these strategies you will stay in the market for long and your confidence will boost up increasingly.

Intraday or day traders decide to bet on the stock and 1,000 shares each.

Thus there is a sudden rise in demand for the share.

Free Intraday Tips
Free Intraday Tips

This causes prices to go up marginally.

As soon as it hits a certain level, traders sell their stocks.

This, in turn, causes prices to fall.

Most day traders like to trade in stocks which have liquidity and volatility.

Now, what is liquidity? It means that the stock is having enough volume of trades,

The advantage of liquidity is that you don’t have to worry about the availability of a buyer or seller for your particular stock in the market.

Free Intraday Tips

Also, you can enter or exit in the right place as per your wish.

Also, you can trade in higher volumes.

However, volatility indicates that the stock will give huge movement. So, it can give you greater profit or even a greater loss also.

Pivot levels go right back to the days of the trading floor and before the decimalization of securities but they’re still used today by lots of intraday traders.

Because so many day traders and ‘locals’ look at pivot levels, they provide excellent levels of support and resistance in the market.

Everyone is looking at them which means they are more likely to provide significant turning points.

Free Intraday Tips
Free Intraday Tips.

They have a simple calculation which is calculated using yesterday’s prices and this means that the levels constantly adapt to the market.

I’ve worked at two-day trading firms now and in both companies, traders would look at pivots.

Even if they didn’t directly trade off pivots, all the traders had an idea of where they were and what could happen when a pivot point was approaching.

Always remember that the pivot is the most important level.

Free Intraday Tips

When the market is above the pivot it’s a bullish signal and when the market is below the pivot, it’s bearish.

Accordingly, some traders will only buy when the market is above the pivot, and they will only take short trades when the market is below the pivot.

The other support and resistance levels are usually very good levels to take profits and manage the trade.

Occasionally, when the market is particularly overbought or oversold (look for a high RSI or momentum score) the levels can be used to take reversal trades.

Technical analysis:

Since day-traders are only concerned with the volatility in price and volume of the stock, these traders rarely look into the financial viability of the underlying company.

Free Intraday Tips
Free Intraday Tips.

They usually employ technical analysis.

This includes analyzing historical trends in stock prices and volumes to forecast future price.

Technical analysis helps determine the right conditions to buy and sell stocks.

But this generally demands a lot of time as well as efforts.

That is the reason you must have seen the day traders remain to stick to the screen whole day, closely analyzing every minute movement in the stock.

Free Intraday Tips

Before you buy or sell a stock, it is important to understand the fundamentals of the stock.

You should find a sector that interests you and in that sector, find a few shares that you would be interested in trading in.

After this observe the stock for a few days to notice its movement, volumes, liquidity etc.

It is also important to see how strong the company is.

However, it is suggested not to trade in news driven stocks. The reason behind is that it moves with a high risk.

So, it seems difficult to predict the entry and exit points.

Free Intraday Tips.

 

Free Intraday Tips
Free Intraday Tips.

Advantages of Intraday Trading:

Free Intraday Tips.

  1. Leverage Benefit.
  2. No Overnight risk.
  3. Profit in either direction of markets.
  4. Lower size of the capital.
  5. Quick returns.
  6. Only a little capital investment is required by the trader as payments can be made in small margins. Free Intraday Tips

In day trading you can buy stocks without paying for the full price of the stocks. Free Intraday Tips

The market makers allow you to pay only a part of the price to hold the shares.

So, you can gain more by investing less.

Free Intraday Tips

In day trading you can always short sell the stocks that mean you can always sell the stocks before buying them and then buy the stocks before the closing of the market. Free Intraday Tips

This is one benefit that can give you profit even when the price of the stock is sure to fall.

The brokerage of the intraday trading is always lower than the delivery trading.

Free Intraday Tips.

In day trading you are getting the profit on the very day.

So, your investment is for a few hours only.

Therefore, even if the stock price rises, a little your profit percentage is significant.

You get back the money each day after the market closes and hence you can always start afresh the next morning.

Free Intraday Tips.

Free Intraday Tips
Free Intraday Tips.

Disadvantages of intraday trading

  1. There are no long-term capital investments.
  2. The use of leverage can result in more losses.
  3. It requires the constant attention of the trader as trades end by the end of the day.

Why Do People lose in Intraday trading?

  1. Random style of trading without any technical analysis systems.
  2. Screen-based and emotional trading.
  3. No stock training and experience.
  4. Looking for cheapest brokerage and lacking quality service.
  5. Lack of flexibility.
  6. Lack of Discipline.

Free Intraday Tips

As the intraday players importantly take benefit of the volatility, they are highly exposed to the risks. Free Intraday Tips.

This is much higher than the risks taken by a long-term stock investor.

As a result of these intraday bees generally speculators and plays with the will to take high risks. Free Intraday Tips.

Usually, they use to pay in high-value trades costing Lakhs or Crores of rupees that is by using margin trading.

(Use Cover Orders and Bracket Orders to take advantage of high margins provided by Upstox) However, intraday traders can also make an extraordinary amount of profits. Free Intraday Tips

Free Intraday Tips
Free Intraday Tips.

The importance of sticking to the stop loss cannot be over-emphasized for day trading. Free Intraday Tips

In fact, there are many traders you can find in the market who find it most difficult to book a loss.

Thus end up with taking stock on delivery when its price goes down.

And what happens in such a scene is that you are out of the basic fundamental of intraday trading as you have taken it for delivery. Free Intraday Tips

Further, you do not know whether you will be able to exit it at profit and how long you have to keep it then.

Free Intraday Tips

By doing so, many traders are forced to keep the stock for the long-term and often get stuck with it. Free Intraday Tips

Therefore you should always have a stop loss and stick to it.

The reality is this:

Few people are actually successfully day trading forex or other markets for a living. Free Intraday Tips

However, that is the most uncomfortable fact of life about which the marketers do not even like to speak of!

And these few bees are most probably playing with other’s money, maybe the trader working for a bank or a hedge fund.

Free Intraday Tips.

Free Intraday Tips
Free Intraday Tips.

That means the stakes are not as high for them, as they are for a person trading their own capital.

Stock market earns you great returns if you are a long-term investor.

But even in the short term, they can help you earn profits. Free Intraday Tips.

Suppose a stock opens trade at Rs 500 in the morning.

Soon, it climbs to Rs. 550 within an hour or two.

If you had bought 1,000 stocks in the morning and sold at Rs 550, you would have made a cool profit of Rs 50,000 – all within a few hours. Free Intraday Tips.

This is called intraday trading.

Free Intraday Tips

That being said;

There are intra-day trading strategies beginners can use to maximize their chances to stay in the game for the long haul. Free Intraday Tips.

One can use in most of the markets such as stocks, commodities or forex.

Because, ‘the long haul’ is where someone can turn their initial starting capital, into a retirement nest egg!

Timeframes in Trading:

Free Intraday Tips.

Generally, timeframes in trading can be broadly classified into the following 4 Categories:

  1. Intraday Trading: Spanning from seconds to hours.
  2. Swing Trading: 3-5 Days or few days.
  3. Short-term Trading: Few weeks.
  4. Long-term Trading: Few months.

Free Intraday Tips.

Free Intraday Tips
Free Intraday Tips.

Successful day trading requires Trading Edge, Good risk-reward, Suitable trading system, Trading Discipline and Patience to strike only when the opportunity is right.

Free Intraday Tips.

It is advisable for new entrants in day trading to start with an oily liquid and frontline stocks.

Even trading the index is advisable for day traders as it has high liquidity.

Free Intraday Tips.

So, in this article I will show you everything you need to know to get started including:

    • Awesome forex day trading strategies that are used successfully every day.
    • The main chart patterns associated with these forex trading strategies.
    • Instructions for implementing the strategies.

Free Intraday Tips.

Then I will tell you,

How to manage your trading risk to stay in the game for the long haul.

Free Intraday Tips

The simple truth is.

Learning to use and implement basic intra-day trading strategies can cut your losses by 63% immediately and will increase your profitability chances in the long run. Free Intraday Tips

There are a number of stocks in the market which have a great correlation to the movement of the major indices.

What this essentially means is that they mirror the movement of the indices.

For example, if the Sensex is increasing these stocks will also tend to rise and vice versa. Free Intraday Tips

This makes it easier to predict the movement of the stock and thus increase your chances of making a profit.

Day trading in Futures and Options Market:

Derivatives markets already come with high leverage and exposure.

Free Intraday Tips
Free Intraday Tips.

So day trading in derivative instruments like futures and options markets, call for high leverage. Free Intraday Tips.

Unless someone is extremely sure on the trades initiated with proper discipline, Day trading in futures and options market is not advisable.

Do remember leverage is a two-edged sword which will either maximize profits or even losses. Free Intraday Tips.

When it comes to trading futures, knowledge on discount and premium to spot prices, time left for expiry and general rates of interest in markets has to be kept in mind.

Free Intraday Tips

For options trading, use of Option Greeks like Delta, theta, Gama, Vega, and Rho will make the trader better than a novice intraday trader in the futures and options market.

Momentum Reversal Trading Strategy

Free Intraday Tips.

The strategy seeks trading opportunities through the combination of fundamental and technical analysis.

It requires a trader to analyze the fundamental aspects of the traded currency to establish a mid to long-term trend first. Free Intraday Tips.

Then it uses the price momentum, support and resistance zones to spot market reversals.

Free Intraday Tips.

Free Intraday Tips
Free Intraday Tips.

The strategy allows to enter the market at low risk and provide a large profit potential through advanced money management. Free Intraday Tips.

All trades are planned in advance to give a trader enough time to enter the market every time.

Most trades are placed as pending limit orders often executed during London’s session. Free Intraday Tips.

The strategy works well on all major US Dollar crosses.

It generates between 1-5 signals per month.

All trades are entered and held for anything up to several weeks depending on the price action and the market fundamentals. Free Intraday Tips.

The strategy has been traded in live markets for the last 15 months and its performance is clearly documented in the performance section.

Free Intraday Tips

First of all, the idea is to select stocks which have a high volume of trade.

This means they are highly liquid. Free Intraday Tips.

This could include penny stocks – shares of small-scale companies with prices as low as Rs 20.

Select a maximum of two or three stocks at a time.

It would become difficult to monitor more shares. Free Intraday Tips.

Decide the price at which you want to buy and sell – your entry and target prices.

Most importantly, ensure you have a stop loss order to act as a safety net.

This will help reduce your risks. Free Intraday Tips.

Once you have placed your order, monitor closely and exit when the price has hit your target or stop- loss levels.

Free Intraday Tips.

Free Intraday Tips
Free Intraday Tips.

Intraday Trading Indicators

Traders often face difficulties with concurrent events occurring in intraday trading. Free Intraday Tips

Whether a person is an experienced trader or a beginner, looking at the trends and indicators is always beneficial for everyday trading.

Let us look at some indicators :

Moving Average

Free Intraday Tips.

Most traders rely on the daily moving average (DMA) of the stocks.

The moving average is a line on the charts that show the behavior of a stock over a period of time. Free Intraday Tips.

These charts show the opening and closing rates of the stock.

Free Intraday Tips

The minimum average line shows the average closing rates of that particular stock in the given interval and helps you comprehend the ups and downs in the price and determine the flow of the stock.

Free Intraday Tips.

Relative Strength Index (RSI)

This is the indexed form of all the trading that happens over a stock in a period of time. Free Intraday Tips.

It ranges from 1 to 100 and graphically shows when a stock is sold or bought highest.

The RSI is considered overbought when over 70 and oversold when below 30.

Free Intraday Tips.

It uses a formula for this calculation, that is,

RSI = 100 – [100 / ( 1 + (Average of Upward Price Change / Average of Downward Price Change ) ) ]

Bollinger Bands

These are bands that show the standard deviation of the stock.

Free Intraday Tips.

Free Intraday Tips
Free Intraday Tips.

It consists of three lines – the moving average, the upper limit and the lower limit. Free Intraday Tips.

If you seek the trading ranger of a particular stock, these help you locate the price variation of the stock over a period of time.

Hence, you can put your money around the observations.

Momentum Oscillators     

Free Intraday Tips.

The stock prices are highly volatile.

Such variations largely depend on market situations. Free Intraday Tips.

If a trader wants to know whether a stock would rise or fall, this is where the momentum oscillator is beneficial.

Free Intraday Tips

It is depicted in a range of 1 to 100 and shows whether a stock would further rise or fall, helping you in determining when to buy a particular stock. Free Intraday Tips.

It shows the right time to trade, not making you lose your chances.

Momentum Reversal Trading Strategy uses a few indicators only:

Free Intraday Tips.

  • Stochastic Oscillator ( multi-time frame).
  • Support and resistance.
  • Fibonacci retracements.

After establishing your bias and long-term trend through Commitments of Traders report, it’s time to switch to daily charts and look for a price reversal phase. Free Intraday Tips.

Free Intraday Tips
Free Intraday Tips.

When it comes to variations and movements in intraday trading, the most helpful tools are the daily charts. Free Intraday Tips.

These can provide all the necessary information about the stocks with indicators that show the trend of any particular stock over a definite period of time. Free Intraday Tips.

They convey the movement of the prices from the start to the close of market.

Time analysis becomes a useful tool for intraday trading as the momentum tends to shift quickly. Free Intraday Tips.

You won’t be able to comprehend the charts before the stock you put your money in goes down steeply or shoots right up.

Free Intraday Tips

Hence, it becomes necessary for day traders to look for such charts that would help you understand the flow better – Striker Stock Research has covered these concepts extensively in things to know while investing in Intraday Trading. Free Intraday Tips.

If you buy stock on a delivery basis, you can pretty much do anything with it.

You can keep it for as long as you want, or sell it the next day. Free Intraday Tips.

It all depends on what you wish to do with it.

Anytime you feel the market is high or the value of the stocks held is adequate enough to trade, you can sell them to earn the benefits. Free Intraday Tips.

Free Intraday Tips
Free Intraday Tips.

In intraday trading, you are required to sell the stocks on the same day, before the market closes. Free Intraday Tips.

If you fail to do so, there can be two outcomes.

Some online platforms automatically convert those stocks into delivery trades and levy a brokerage, so that you can sell them at your own desired time.

Others just square-off your trades at the market price during the close time, even if you’re making a loss, and sadly you have to bear the losses. Free Intraday Tips.

It is easy to conclude that intraday trading is usually completed within a day.

Free Intraday Tips

This typically means that all the shares purchased during the day must be sold by the end of the day, before the closing of the markets.

If these shares are not sold, they are automatically squared off at the closing time. Free Intraday Tips.

However, on the other hand, in delivery based trading, shares bought can be maintained for a longer duration for higher profit returns.

While intraday trading gives the opportunity for low capital accounts and margin payments, delivery trading requires complete amounts for its transactions. Free Intraday Tips.

Free Intraday Tips
Free Intraday Tips.

As an intraday trader, if one can judge and forecast the value of shares at short and small intervals, then intraday trading is a good idea.

Nevertheless, there are many technical tools which assist in predicting short-term price movements. Free Intraday Tips.

However, if one considers the long-term investment is their loving game and they are likely to be able to pick shares on the basis of the company’s intrinsic value and relatable assessments.

That includes fundamental indicators of the company like price-to-earnings ratio, book value, then the holding basis or say delivery based trading is a better option to play. Free Intraday Tips.

When the market is showing uptrend or is in a bull run, it seems to be a good idea to stay longer then.

Free Intraday Tips

And if the market is looking bearish then either you can short or wait for stocks to hit their bottom before taking a long position. Free Intraday Tips.

Intraday trading is a mind game and only the strong survive.

But with the guidelines outlined above, it is possible to make money as an intraday trader. Free Intraday Tips.

Discipline and consistency are the two keywords in winning this game.

Predicting the outcome of economic releases or earnings reports might not be possible but it is possible to analyze price action and to make careful risk-based bets. Free Intraday Tips.

Free Intraday Tips
Free Intraday Tips.

For example, if a strong, positive, piece of news comes out and the market struggles to go up as it should, that’s an important sign that should be taken account of.  Free Intraday Tips.

In this instance, price action is suggesting that there are not enough buyers, even though the market has just had good news. Free Intraday Tips.

That means resistance, and when the good news wears off, or when bad news comes out, the market could easily fall. Free Intraday Tips.

Being able to interpret price action in relation to events is absolutely key.

Free Intraday Tips

The key with news trading is not to follow market sentiment; you need to work out what the market is expecting.

If need to take a position against the crowd – if the probabilities are in your favor.  Free Intraday Tips.

For example, if the market is pricing in a 70% chance that the Fed will raise interest rates.

You make it be just a 25% chance, then going against the market offers a trade with great risk: reward.

Free Intraday Tips.

Free Intraday Tips
Free Intraday Tips.

News trading can be profitable but generally, it requires quick thinking and a bit of preparation. Free Intraday Tips.

Whatever it is, it’s always best to try it out for a while on a trading simulator.

Conclusion:   

Success in Intraday trading is directly related to the Expertise and Experience what an intraday trader holds.

Over 95% of Day traders lose money which is a bad statistic to a day trader.

But the good news is, the rest 5% of winning Intraday traders make the money of the losing 95%.

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