Best Intraday Trading Strategies for Beginners

While many people fear the stock market and see it as gambling and consider staying away from it, there is also an emerging section that is attracted to it and sees a future in it.

Especially in today's time when there is no paper trading as before, people can now easily buy and sell their desired shares from anywhere sitting at home with just a few clicks and earn a good profit. But wait a bit, is it that simple, the answer is no, only those people can earn good money from the stock market, who have a strategy and well thought out planning, 

Apart from this, whoever invests money in it just by looking at others is actually putting his money in a lot of risks in which the chances of his loss are high, and even if he gets profit, then it will not remain for long, at a point of time his money will sink.

And now the question arises from where do we get to know about stock market strategies?

The simple answer is just by reading our posts, We keep bringing you new articles related to share market trading and investing every day,

And in today's post, we have mentioned the best Intraday trading strategies for beginners.

Although there are many Intraday trading strategies available, we have handpicked the top 5 most widely used strategies, especially for beginners.

But before proceeding further, make it clear that you know the basics of intraday trading like what is it, what is stop-loss, what are indicators and how to use them in trading, etc.

But still, let us explain them in brief just to remind you. also if you know about them then you can skip this part and can continue your reading from the strategies part below.

What is Intraday Trading?

Intraday trading is a type of trading in which an individual buys and sells his stocks during the same trading day before the market closes.

The main objective behind this trading is to generate pr9fit from the rise and fall of the selected stock price on the same day.

Leveraging: This means borrowing money from your brokers to increase your purchasing power and increase potential investment returns. For example, you can take advantage of leverage in intraday trading for greater exposure while paying a fraction of the open position.

Use it wisely because where there is more benefit in it, there can be more loss.

Stop loss: Stop loss during trading can save a person from a huge loss. It is a facility with which a trader can reduce or stop his loss if any. When placing a buy and sell order, the trader can place a "stop-loss order" with a certain price and if the trade goes the opposite according to the individual's assessment and the stock price hits that certain price, The order gets automatically executed which protects the trader from extensive losses.

So, never forget to put a stop loss on your selected trade.

Indicators: It is well known to all how important the role indicators play during trading, no trader can make good trades without the help of indicators. They play a vital role for everyone from beginners to advanced traders, Especially when it comes to technical analysis, it is impossible to do this without the help of trading indicators.

And here we have listed the best trading indicators, and by gaining good command of them any trader can increase his profit to a great extent.

• Relative Strength Index

• Aroon Oscillator

• Accumulation/Distribution Line (A/D Line)

• Moving Average Convergence Divergence (MACD)

• Advance-Decline Line

• Moving Averages

• Bollinger Band

• On Balance Volume

• Supertrend

• Stochastic Oscillator

• Commodity Channel Index

• Average Directional Index
  
  

Yes, they are too many but you can easily learn their uses and have a good grip on them after some practice.

After clearing these basics now, let's move toward our main topic...

What are the best Intraday trading strategies for beginners?

So, if you're a newcomer in Intraday trading then as a beginner, it is crucial to understand the basic and best strategies to prevent any kind of losses and make multiple gains in a short period. Meanwhile, for beginners investing in intraday trading,

We recommend that you invest only as much money as you are prepared to lose and should not face any financial trouble due to this loss because no method has yet been discovered that can give you a 100% guarantee of winning every time. In intraday trading, depending on how well the stock market strategies and basics are used, the investor can either make a decent profit or book a huge loss.

*Here is a brief overview of these strategies if you want to implement any of them then you need to do more research on them.

Best intraday trading strategies

And this type of situation arises when news acts as a catalyst. Many intraday traders are in a search for such stocks and place bets on them, assuming that the gap will close by the end of the day. This strategy is great for the person who wants low but quick profits and does not want to bear much risk. Now the question must arise in your mind:

How do you know if the stock is gap up or not? 

The best way to know whether a stock will gap up or not is to use a stock scanner. We recommend that you scan the pre-market each morning for stocks with a minimum gap-up of 3% and a premarket volume of 100,000+ also, filter and value any stocks with news triggers.

Momentum trading strategy

Momentum trading strategy is all about the market trading in the right direction and right momentum, In this strategy before significant changes occur in market trends, investors choose the right stocks and invest accordingly. Stock selection is facilitated by news reports relating to the stock which can move the graph up or down. The role of an intraday trader is to study such news before the market becomes available for investment and then trade accordingly.

An intraday trader needs to remember that due to external factors the data will either go up or may go down, A quick decision has to be taken as to the investment. Depending on the speed of market direction, investors can hold security for minutes, hours, or even for more time. The momentum trading strategy is great, but investment needs to be accelerated as soon as the news comes out. Further, the time for holding the securities is entirely based on these market trends and analysis, which are closely followed every day and have to be delivered at the right time while making the right decision.

Breakout trading strategy

It is a type of momentum trading that requires, in this trading strategy, timing plays a crucial role when making trading decisions. It includes identifying threshold points and when stock prices move above or fall below a specified time frame. In this, if the trend continues to propel prices above the threshold point, investors buy the stock and take long positions. Besides that, if the selected stock prices fall below the threshold point, the investor takes a short position or sells the stock. The basic thinking treatment behind the breakout trading strategy is that if prices exceed the threshold, they will be more volatile and remain trending.

Gap and go strategy

This is a very popular trading strategy among intraday traders, it is used when the stock gaps up or gap low from the previous day's close price.

Gap up: The term gap up means that the price of the selected stock opens higher than the previous day's close price of the same stock.

Gap down: The term Gap down means that the price of the stock opens lower than the previous day's close price.

Moving average crossover strategy

A moving average crossover is a type of indicator that is often used in price charts to represent a price trend, many investors use them as their primary analytic tool While others simply use them as confidence drivers to support investment decisions.

Let's understand the uptrend and downtrend.

Uptrend: When the price goes above the moving average it is known as the uptrend.

Downtrend: If the price falls below the moving average, then it is referred to as a downtrend.

The key to the moving average crossover strategy is to select such stocks at the right time and these can be acted upon with the help of catalysts, such as news about stocks, directly or indirectly.

Note: If you are trading then keep this in mind that none of any strategies gives you a 100% profit guarantee but yes you can definitely reduce your chances of lloss to a great extent by simply applying them. And also for getting more profit you should have a good understanding of these strategies and by practicing them regularly you can be a good trader.

Summary:

In this post, we get to know about trading strategies that can prove beneficial for traders, especially for new traders. We have mentioned the top 4 most popular strategies like Momentum trading strategy, Moving average crossover strategy, Gap and go strategy, and Breakout trading strategy. and explain them in brief by applying them anyone can generate good profit and reduce their chances of loss, Also, we have mentioned the common trading terms, that a beginner must know before he/she starts trading,

That's it, I hope our post will be proven helpful to you in the journey of your trading,

Best of luck. and thanks for reading our post till the end.