Contents

1. Best Intraday Trading Tips and Strategy
2. Intraday trading: Getting into intraday trading? Here is what you must know - The Economic Times
3. 1. Vector Cash
4. What Is Day Trading?

One has to devote a lot of time and to be a successful intraday trader, it is advised to be in front of your trading screen throughout the market trading hours.

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Choosing the shares for intraday trading is no Rocket Science. Following are some of the parameters which should be given due importance while choosing stocks for intraday trading:.

Best Intraday Trading Tips and Strategy

Now, having understood the basics of Intraday trading the various facets which should be kept in while choosing the shares to intraday trade. One thing which should always be kept in mind that these strategies do not guarantee to make money. Let us try and understand a few intraday trading strategies:. As the name suggests, the whole premise of this strategy is to catch the momentum in the market. It is imperative to track these stocks before the actual momentum starts in the market. These movements could be because of Fundamental Overnight news, Quarterly earnings, some big order procurement, new projects, etc.

Now, if you look at the picture above, the market opened near the previous day high, but the momentum soon fizzled out and we saw selling pressure coming in the market. And we saw a series of lower highs and lower lows in the market. And it ended the day near the lows of the day. So, this is a classic case of momentum intraday trade in the market. As the name would suggest, this strategy focuses on finding the trade which is going to trade in a new territory or has broken out of its usual territory.

One thing should be kept in mind that the breakout has happened with volume thin volume breakouts generally tend to be false breakouts. If the breakout is on the upside, then we go long and if the breakout is on the downside, then we go short. One should always mark the supports and resistances, so as to have right stop losses for the breakout trades. Image 2: 15 Mins chart of Maruti source: www.

Intraday trading: Getting into intraday trading? Here is what you must know - The Economic Times

Now, if you carefully look at the image above, we see a classical breakout trade. These trades when spotted, have the potential of generating significant returns. The Stop loss for this kind of trades is always the low of the range prior to the breakout.

This strategy is the most beneficial strategy for a day trader. The whole idea to constantly keep scalping in the market for small profits. This strategy is a very common method of trading while trading commodities. This kind of trading is generally done by high-frequency traders in the market.

The overall technical and fundamental setup does not have a major bearing on this trade. Price action plays a very important role while selecting the trade for scalping.

1. Vector Cash

The stocks or commodities chosen for purpose of scalping should be liquid and volatile. And one important thing to always keep in mind is to have a stop loss for every trade. One should not let the position drift away. The scalping strategy is best suited when the market is stuck in a tight range. Liquidity and tighter range are two friends of scalpers. Img 3: 15 Mins chart of TCS source: www. If we look at the image above, the market is stuck in a tight range and it provides a great opportunity for scalpers. This Strategy can also be called as the moving average crossover strategy.

This is generally a trend reversal strategy in the market. When the price of the underlying asset goes above or below the moving average, it generally signals a change of momentum in the market. When the crossover happens from bottom to top, it is called Bullish crossover and when the crossover happens from top to bottom, it is called a Bearish crossover.

And when the market starts trading over the moving average, the dips are being bought back in the market. Therefore, when the market is trading over MA, it is advised to go long and when the market is trading below MA, it is recommended to initiate a sell position. In this article, we covered the four best Intraday Trading Strategies for beginners.

However, if you do not intend to take delivery, you can actually trade intraday by just putting up a margin. How much margin should you pay on an intraday position? There are 2 types of margins that you need to understand here. This will vary by stocks based on the volatility of the stock prices. Exposure margins or Extreme Loss Margins ELM is additionally imposed on the intraday trader as an extreme protection measure. It is not compulsory to collect these margins but most brokers do collect these margins from traders as a measure of abundant caution.

Data Source: NSE. That virtually gives you 8X leverage for intraday trading and that is a good leverage that you can extract. By investing Rs. But that is more because RIL is not a very volatile stock. What happens if you select a highly volatile stock to trade intraday? Let us now go around to a more volatile stock like PC Jewellers that has been extremely volatile in the last few months.

Here to take a position worth Rs. Obviously, that will discourage you from day trading in the stock, which is what the exchange wants as they are keen to curb speculation in certain volatile stocks. When we select the Margin Intraday Square-off MIS option while placing an order, your order is automatically classified as an intraday order.

This will entitle you to the entire margin facility that the NSE offers and, at times, even more. In the above case of Reliance Industries, you can get leverage to the tune of 14X if the broker does not insist on collecting ELM margins. The first point is to clearly select that you want to place an MIS order so that you are automatically eligible for higher margins.

Secondly, select stocks that are less volatile and hence give higher leverage.

What Is Day Trading?

Speculative stocks are not only more risky but also entail higher margins. An important point to remember is that all MIS orders have to be necessarily closed intraday. The broker runs a MIS check after 3.