Today we are going to discuss the most profitable Intraday Trading Strategies. And these strategies have been backed test and based on personal proven experiences. In the next few minutes, you will learn How to Make Money In Intraday Trading.
Share market provides you more profit if you are a long-term investor. However, even in the short term or In Intraday trading, they can help you earn a handsome profit. For example, a stock opens a trade at Rs 10 in the morning and soon climbs to Rs15 within an hour. Now, if you had bought 1000 shares in the morning and sold it at Rs15, you would have made a cool profit of Rs 5000/- all within an hour - This is how Intrday's magic works.
You can easily make a minimum of Rs2000/- or more after reading and implementing the strategies written in this article.
Let’s jump into this:
Before coming on to the Intraday Strategies, you should know about What is Intraday Trading:-
What Is Intraday Trading? How To Make Money In Intraday Trading
Intraday stands as “Within The Day or Same Day”. So, what it mean that you buy and sell on the same trading day. Intraday trading is also called day trading. Intraday trading is done by using online trading platforms.
Basic Information About Intraday Trading
For example, suppose a person buys stock for a company, they have to specifically mention “Intraday” in the portal of the platform used. This enables the user to buy and sell the same number of stocks of the same company on the same day before the market closes.
Share prices are never stable, and it keeps fluctuating throughout the day. Thus intraday traders try to earn profits from these price movements by buying and selling during the same trading day.
Intraday Trading refers to buying and selling of stocks on the same day before the market closes. In case you are unable or missed to buy or sell, your broker may square off your positions or convert them into a delivery trade.
Doesn’t matter whether you are a newbie or an experienced one. Such kind of trading is always beneficial as the indicators and trends of the market will guide you properly.
Intraday Trading refers to buying and selling of stocks on the same day before the market closes. In case if you are unable or missed to buy or sell, your broker may square off your positions or convert it in delivery trade.
Doesn’t matter whether you are a newbie or an experienced one. such kind of trading is always beneficial as the indicators and trends of the market will guide you properly.Paisatool
Intraday Trading Indicators
There are many types of Trading Indicators are available in the market – below are the Top Indicators:
- Relative Strength Index (RSI)
- Moving Average
- Bollinger Bands
- Momentum Oscillators
Whether the Investor is a beginner or experienced, looking at the trends and the indicators are always beneficial for everyday trading.
Relative Trading Indicators (RSI)
RSI is the indexed form of all the trading that happens overstock in a period. It ranges from 1 to 100 and presents graphical data when a stock is sold or bought highest.
In RSI, if the range is 70 or above, considered overbought and oversold when below 30.
Pic Credit – Fidelity.com
You will get a complete analysis and deep dive regarding this Youtube video – Video Courtesy: Super Trader Lakshya
He explained in an exceptionally well manner how you could earn huge profits by using this strategy.
Maximum traders depend on the Daily Moving Average (DMA) of the stocks. The moving average is nothing but a line on the charts that represent the behavior of a stock over a period of time. These charts show the opening and closing rates of the stocks.
The minimum average lines show the average closing rates of that particular stock in the given interval and help you comprehend the ups and downs in the price and determine the flow of the stock.
Bollinger bands show the standard deviation of the stock. It consists of three lines, i.e., the upper limit, the lower limit, and the moving average. Suppose you seek the trading ranger of a particular stock. In that case, they help you locate the stock price over a period of time, and you can invest your money as per the observation.
As per Google – The Momentum Oscillator is the current Price divided by the price of various periods, and the quotient is multiplied by 100. The result is an indicator that oscillates around 100. Values less than 100 indicate negative momentum or decreasing price.
How To Make Money In Intraday Trading in 2021: Imp points Keep In Mind While Trading Intraday
Always Set Entry and Target Prices
Before putting your money in the share market, you strongly recommend that you set your own entry-level and target price.
This will give you an exact idea of at what price you need to sell and buy the shares. Else if you fail, you may lose your opportunity to take full advantage of Intraday.
Go With Liquid Shares
Liquid shares are generally a good source of high returns. Hence, buying liquid shares (or high column trade) is strongly recommended for intraday trading as you will have to sell these shares before the market closure at the end of the day.
Always choose two or three large-cap shares that are highly liquid.
Sell Your Shares & Book Your Profits When Target is Reached:
It would be best if you controlled your greed while investing in Intraday trading. Just sell your shares when you achieve your set price target. If you still think that stocks are a further possibility to increase, then readjust the target price.
Moving In The Right Direction As Per The Market :
This is one of the finest things you should do to avoid losing your stocks. As per experts, you shouldn’t move against the market until and unless you are sure about this. If your expectation is incorrect or false, you will soon be out of the race as per the market. So, it would help if you exited from that as soon as possible.
Choose Your Wishlist And Research thoroughly:
In Stocks, there are corporate events such as a merger, stock splits, bonus dates, dividend payments, etc. So make sure you include more than 5 shares in your wishlist and research them through these corporate events, once you get confident about the stock you have selected, you can Trade it Intraday.
What Is Share Market?
A stock or a share market where big companies like (Facebook, Bata, TATA, Reliance Industries, HDFC Bank, TCS, Asian Paints, etc.) increase their capital (capital profit), companies sell some part in the form of shares in the market.
Now you can buy the shares of companies and become the company’s shareholder(s). In this way, whatever profit the company makes, you become a profit shareholder according to your purchased shares.
The share market is a platform where shares/stocks are sold or traded
A company’s capital is divided into shares, and these shares are sold or traded to raise funds or grow.
There are Equity and Preference shares. Equity shares give the holder voting power, and the holder has to share the company’s profit. Preference shares usually give no voting power but provide a fixed amount from profits-dividends.
Share Market is the market where shares/stocks are traded, bought or sold. When a company registers itself for the first time to sell shares (called IPO), it trades in the Primary market. A secondary market is where companies that are already listed involve in trading stocks.
The trading in the stock market in India takes place in two stock exchanges- the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
Share prices change as they are dependent on the perceived value of one unit of a company. If the demand for the stock rises, the buy order will increase and the price.upstox – Explained in easy definitions
Benefits Of Share Market
High Return On Long Term Investment
The top advantage of Investing in the share market is that whether you are investing in the long term or short term, it has a strong ability and potential to generate inflation-beating returns.
In bank FDs, Savings accounts, you will get a return from 4% to a maximum of 7%. But in the share market, if you invest wisely with research, the average return is 20% and goes higher as per the market portfolio.
Flexibility To Invest With Small Amount
As a beginner in the share market, you can start with a small amount as much as you want. You can prefer to buy small-cap or mid-cap stocks by buying large-cap stocks in smaller units. And the best thing is that it is not a required lump sum investment amount.
Another best thing is that it is not mandatory that you have to buy a particular amount of shares every month, you can buy them when you want.
An Ownership Stake In The Company
When you buy shares of a public listed company, It essentially means that you are buying an ownership stake in that particular company. It will give you a sense of ownership in the company that you like.
That means you as a shareholder play an important part in companies decisions. It gives you proportionate control over the company.
This ownership of shares will, in turn, grant you voting rights and you will receive dividends and bonuses, etc.
Moreover, companies’ annual performance reports will send to you to know about the company’s overall growth.
If we termed stocks as liquid assets i.e. an asset that can be easily converted into cash, which investors can buy and sell shares through the stock exchanges within seconds.
However, this will not be applicable for all the assets. Assets like property are difficult to find a buyer easily. Sometimes it could take a month to cash in on the investment made in the property.
Extra Bonus Shares Reward
In the share market, you will also get an extra bonus shares award. These bonus shares completely depend on the yearly performance of companies. That means it will help you to grow your revenue.
The Versatility of Investment In the Share Market
There are many modes of investments available in the Share Market, i.e., Shares, Bonds, IPOs, Mutual Funds, and Derivatives. This allows investors a wide range of options to choose from and invest in.
Difference Between Delivery Intraday Trading & General Trading
Delivery Intraday Trading is a bit different as compared to general intraday trading. Your money is more secure in delivery intraday trading. Here in delivery intraday trading, you buy and sell shares after one day. The main advantage of delivery trading the risk is very low and your money is completely secure.
You are not bound to sell and buy the shares on the same day with a loss.
I tried to cover as much as I could for a newbie that “How To Make Money In Intraday Trading in 2021”, feel free to comment to us if you still have a question in your mind related to Intraday Trading or Share Market.
Now, I want to know how your Intraday Trading or Share Market journey is coming along too.
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