The dynamics of trading are evolving with the recent times. Financial market is undergoing constant changes and the expansion has given rise to diverse trading opportunities. Intraday trading is one of the best ways to earn instant returns. With great intraday trading strategies, the people can have good savings and earn that extra income. Apart from the regular savings, this type of trading can help you fulfill your demands. Investing in the share market and mutual funds serve as a good platform for trading but these are subjected to market risks. The article focuses on the details and strategies for intraday trading. Let’s explore the best ways to make money apart from the regular income.
What Is Intraday Trading?
The buying and selling of the stocks on the same day refers to intraday trading. The investor purchases the stock of a company today under the specifications of intraday trading and sells it in the evening before closing of the market. For Example- The price of the stock was Rs 1,000 when bought in the morning and the investor sells it in the noon when it was rated at Rs 1,030, he makes a profit of Rs 30,000.
Intraday trading involves a great amount of expertise and market knowledge. It is also known as day trading. It’s better to gain market insights before choosing intraday trading to earn extra money. A precise understanding of timings and company stocks gives an upper hand in trading.
What Are Some Great Trading Strategies?
As discussed above, intrading trading is a work of proficiency. There are certain strategies that can be followed while practicing this form of trading. It gives a winning-edge and encourages earning more money. Let’s delve into the best strategies for intraday trading –
- CFD Strategy –
The momentum of intraday trading requires hands-on knowledge for trading. This type of trading can be tiring but with CFD or contract for differences it becomes investor-friendly. This strategy involves an agreement on the difference between prices of your stock from the time you buy it to selling. It lets you track the fluctuation in price of the asset you own.
- Moving Average Crossover Strategy –
It’s yet another popular trading strategy in India. It involves the rise or fall in share prices above the average crossover price. It indicates the change in momentum. It works on the basis of uptrend and downtrend. Uptrend is when the prices move above the average mark and the opposite comes under downtrend. The investors are advised to buy stocks at the time of uptrend and sell them when the prices decrease.
- Gap and Go Strategy –
The literal meaning of gap up and go refers to the gap between yesterday’s closing price of a stock and today’s opening price. When the opening price is higher it refers to gap up and when the price goes lower that closing price the day before, it comes under gap down.
- Scalping Strategy –
Under this strategy, there is an increased focus on the price fluctuations. The traders need to be extremely particular with the timings as the times based strategy fosters a bit of extra risk. It’s good for achieving small gains as an outcome of the small price fluctuations.
- Pull Back Trading Strategy –
As the name suggests, this strategy is a great aid in saving the trader from future losses included in the particular trend he follows. Pullback doesn’t last for more than a few months while the trend reversal strategy can change the dynamics of the whole market. Under this strategy the weak stocks are bought and the strong ones are sold.
- Breakout Strategy –
The price threshold and timings play a critical role in this intraday trading strategy. The profits take place when the price breaks out of the threshold. In order to gain, you need to wait for the right time when prices break out.
- Pivot Point Strategy –
The pivot point is that zone where the market shifts from bullish to bearish and vice-versa. This strategy is maximum used in the forex market. The Fibonacci Pivot Point is a popular choice among the traders. It is the best strategy to determine sentiments of the market.
A Few Tips For Great Profits
Intraday trading is a famous way that offers a platform for earning good profits in less time. As simple as it seems, the trading requires a good amount of experience and an in-depth knowledge about the ongoing market trends. Below are a few tips for gaining better profits –
- Choose Liquid Assets – While going for an intraday trading one must always choose for the liquid stocks. Since the whole concept is based on buying and selling of stocks on the same day, the liquidity promotes an easy trading opportunity.
- Avoid Volatile Stocks – The volatile stocks are good in trading but while doing the intraday one, these types of stocks can lead to losses. The traders must always set up the stop losses to eliminate any risks due to market fluctuations.
- Go For Transparent Companies – It’s better to trade with companies that provide clear information about their activities and market status. It encourages the right choice of stocks and aids in preventing the losses.
- Choose Closely Connected Companies – It’s among the basic methods of intraday trading to choose the correlated companies. It leads to informed decision making as the trader already got an idea about the company shares and how it works.
Conclusion
The world of trading is captivating due to immense benefits but it comes with great challenges. It’s important to learn about the market and study the past graphs of the trade market to have a better understanding. To become an efficient intraday trader it’s crucial to learn about the winning strategies and the techniques. Individuals who aspire to be successful traders can gain insights and leading-edge learnings from sebi registered option telegram channel. The professional trading experts with an experience that goes beyond a decade are meant to make you skilled and gain the maximum out of the day trading.
