Know All About The Top 3 Intraday Trading Strategies

The right intraday trading strategy can make your trading plan stronger and successful. Patience, hard work, dedication, and the right knowledge are the key aspects to get success in intraday trading. Many people have made their way to success by following the right intraday trading strategies. 

Introduction

Well, as we all know that the stock market is a highly volatile place and it is equally unpredictable. The situation of the stock market changes every day and hence the traders are asked to change their trading strategies as per the market conditions. In today’s blog, we are going to discuss the top 3 Intraday trading strategies approaching which you can achieve your targets through intraday trading. So, stay relaxed and continue scrolling.

The most effective top 3 Intraday trading strategies

Let’s come straight to the point and highlight the most effective intraday trading strategies which are helping traders to achieve their ultimate goals. 

1. Scalping Strategy

Scalping strategy can be denoted as the most beneficial and effective strategy for intraday traders. In this strategy, traders keep scalping in the stock market to pick small profits. High-frequency traders use this method while trading commodities in the stock market. For this strategy price action is the most important aspect for choosing the trade. There is no need to focus on the whole fundamental or technical setup at all. 

While approaching scalping strategy for intraday trading, make stop loss a habit and always choose the commodities which will be liquid in nature and are highly volatile. 

2. Momentum strategy 

In this strategy, traders focus on detecting the pace of momentum much before it actually starts to happen in the stock market. By following the momentum strategy one can generate returns of 20-30% within one session. You have to spot the momentum at the right time, to make this strategy work for your trading plan. 

To detect the momentum traders, need to focus on fundamental factors like quarterly earnings, business news, big orders or procurements, new project releases etc. Besides this, keeping a watch on technical factors like breakout can also help. To follow this, one needs to learn the right way of reading technical charts and patterns to detect where the stock market is actually moving. 

3. Breakout intraday trading strategy

By following this strategy, traders focus on detecting the trade which is going to enter in a new range of had left its usual range and is going to move in a new direction. Before focusing on this strategy, one should keep in mind that the breakout should happen with the right volume as thin volume breakouts often get marked as false breakouts. 

It is also important to focus on the breakout pattern. Going along with an upside breakout and going short with a downside breakout will be the right move. One should also keep a watch on the support and resistance level to mark the stop loss in the right place. 

How to choose the right intraday trading strategy?

Besides the above-mentioned strategies, there are many others which you can approach according to your style and pattern of trading. Let’s take the example of a News-based Intraday trading strategy. Traders who follow this strategy focus or wait for information that impacts the price altogether. Such traders don’t pay much attention to the volume charts and the stock prices. 

News-based trading means focusing on the information on new products, company’s announcements, economic announcements and many more. But this has some adverse sides too. Sometimes the news can be false and can be hyped to force the price of any stock. This is the reason why people are advised to analyse their own trading style and thoughts before choosing the right trading strategy. 

Some other Intraday trading strategies you should know about

1. Gap up & Gap down- This strategy can be utilised when the stock or index opens gap down or gap up. After this gap, the stock or index potentially shows a reversal sign. This sign can be detected through heavy volume events or a candlestick pattern. 
2. Morning range breakouts - This trading strategy for range breakouts in the morning can also be called opening range breakouts. Using this trading strategy effectively requires the right experience. By using this strategy, intraday traders are able to take advantage of the violent situation in selling and buying orders. 

What does Chart Analysis do for you?

Chart Analysis enables you to increase your knowledge about every major aspect of the stock market, by joining various technical intraday trading courses. Here Mr Umesh Sharma is giving you a chance to explore your skills and to know how trading can be the right earning source for you when done correctly. 

Whether you are just starting up or have already started trading in the stock market, Chart Analysis welcomes you to give the right track to your trading objectives. Here you will get the right trading tips and will get to learn all about the right trading strategies. 

The Bottom line

Above we had discussed the three most effective or most-used intraday trading strategies. Besides this, there are many other intraday trading strategies, you should stay aware of. From this all, most of the strategies can be implemented effectively by using technical charts. To be the perfectionist of day trading, you need to stay aware of the latest trends and should have a proper understanding of the stock market as well. 

In many instances, traders often create their own trading strategies according to the real market situation. To gain the requisite knowledge the traders need to understand different market situations. To keep the money on the safe side, one can use online trading practice tools to have a clearer view of the implementation of different strategies at various intraday trading times. 

FAQs

1. Which is the optimum intraday trading strategy?

Ans. Scalping intraday trading strategy is the most utilised and responsive intraday trading strategy. Still, every trader needs to gain the right knowledge about the implementation of every trading strategy according to the market circumstances. 

2. Which intraday trading strategy is easiest to utilise?

Ans. You can only detect the most comfortable strategy to your trading style, through regular practice. Well, the early morning range breakout and volume strategy is known to be the easiest one for intraday trading. 

3. Which strategy works adequately for intraday trading in Bank Nifty?

Ans. Gap up and Gap down trading strategy is the most effective one for those who want to earn the right amount while trading in Bank Nifty. 

4. Can intraday trading make me rich?

Ans. Yes, one can become rich by doing intraday trading by using the right trading strategy and by gaining the right experience of implementing a strategy at different stock market conditions. 

5. Who is the richest intraday trader?

Ans. George Soros is the richest day trader and his net worth costs over $20 billion.