Intraday trading is one of the most common forms of trading today. It refers to buying and selling stocks during the same trading day. This kind of trading is quite profitable because it allows traders to benefit quickly by taking advantage of the market’s volatility. Many people have taken advantage of the stock market learning Kolkata since it teaches profitable simple intraday trading techniques.
However, some people still need help with intraday trading because they don’t stick to the intraday tactics and instead trade according to their feelings. The fundamentals of the strategy are founded on taking advantage of frequent, occasionally insignificant price changes. Losses must be kept to a minimum, making risk management crucial and finding the proper market conditions. In this article, we’ll look at a simple intraday trading approach that traders in Kolkata can employ to increase their profits.
Three Simple Intraday Trading Strategies
These are some of the top three simple intraday strategies you can use for a more profitable trade:
Breakout Trading Strategy
The breakout strategy is one of the common day trading techniques for picking worthy intraday equities. This strategy concentrates on stocks that rise or fall in value as trading volumes rise. These are referred to as support and resistance levels, and the price increases further once it crosses over resistance. Similarly, you can start a short position in the stocks if the price drops below support levels, thinking the price will keep falling.
Another day trading strategy built on the breakout trading strategy is the range breakout trading strategy. For instance, stocks decisively breaching their 30-day range on strong volume may exhibit strong intraday and positional trading movement. When the stock price starts to trade and maintain above the highs and lows of the previous 30 or 90 days with volume additions, the stakes are raised, and more buying or selling takes place, which causes stocks to fluctuate up and down.
Open High Low- Intraday Trading Strategy
The open high, low-strategy is one of the easiest intraday trading strategies for beginners. Although the accuracy rate fluctuates between 50 and 70%, this strategy can help you succeed in intraday trading with proper risk and money management.
According to the OHL strategy, we wait 15 minutes after the market opens before searching for stocks where the opening equals the high or low for the day. Stocks started dropping with solid selling pressure almost immediately after the market opened when open = high for the day after 15 minutes. Additionally, the stock has yet to pass the day’s high after 15 minutes, which will naturally serve as resistance. These securities should be sold short near the VWAP as they are prospects for short sales.
Also, if Open = low after 15 minutes, the day’s low point has not been broken. If Open = low immediately after opening, it means that buyers started purchasing that stock. To prevent a loss, such stores can be bought daily while limiting the number of days. But be sure to purchase it close to VWAP and not too far away.
Moving Average Trading Strategy
Moving average crossover is another fantastic intraday trading technique for beginners. A moving average crossover occurs when two distinct moving average lines cross. The foundation of the moving average crossover strategy is the simple observation that smaller moving averages track price more closely than larger moving averages (for instance, the 5 SMA tracks price more closely than the 20 SMA) and that when the crossover happens, we can have a small trend formation until the reverse crossover occurs.
The crossover strategy will miss precise tops and bottoms because moving averages are a lagging indicator. But it can help you spot the beginning of a trend and trade that way.
Let’s have a simple illustration. The 5 SMA (red line) and the 20 SMA are visible on the 15 minutes of the Nifty. (blue line). We have a sell indication when the 5MA crosses the 20MA from above. (negative cross). Let’s imagine that we begin a sales transaction. The target is 1%, and the stop loss is fixed at 5%. If the 5 MA passes the 20 MA from below, there is also a chance of exit. (positive cross).
A trader who makes the right decisions during intraday trading can achieve significant profits in a short amount of time. Of course, there are losses, but it’s important to remember that intraday trading can be fun. Understanding this truth is crucial because effective trading strategies aim to minimize the impact of emotion.
You can apply for some share trading courses in Kolkata. They illustrate the learning process using a variety of Indian and international stocks. This stock market coaching aims to get traders and buyers ready to trade like pros. With a focus on Technical Analysis, Risk Management, Trading Psychology, and the use of case studies, you’ll acquire enough subject knowledge, expertise, and familiarity with the active trading world.