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Best Intraday trading strategies, rules and tips

intraday trading strategies

Best Intraday trading strategies, rules and tips


Introduction to Intraday Trading

Intraday trading, sometimes known as day trading, is a thrilling part of the stock market. It’s all about buying and selling stocks within one trading day. The goal? To profit from quick price changes. But, like all things, it comes with risks. So, if you’re thinking about diving into intraday trading, you’ll need the right strategies, rules, and tips.

Strategies You Can Use in Intraday Trading

Trend Following Strategy: Ever heard of following the crowd? In trading, sometimes it’s good to follow the trend. This strategy is all about identifying the prevailing trend and trading in that direction. Using tools like moving averages and the Relative Strength Index (RSI) can help you see which way the market is moving. It gives you a clear direction. So, if the market is moving up, you know it might be a good time to buy.

Breakout Strategy: This strategy is like waiting for a surprise. You’re looking for stocks that suddenly move out of their usual price range. You’ll watch for key price levels. When a stock breaks these levels, that’s when you make your move. It’s a way to ride the momentum of a stock, which can lead to big profits.

Range Trading Strategy: Think of this as playing within the lines. You’ll buy stocks at low prices and sell when they hit high prices. Identify price ranges and execute trades at support and resistance levels. This strategy is best when the market isn’t making big moves.

Scalping Strategy: This is for those who love quick action. Scalping is about making many trades in a day, all for small profits. You’ll jump in and out of trades, aiming to catch small price changes. It’s fast-paced and can lead to quick profits, even if they’re small.

Golden Rules for Intraday Trading

If you’re going to succeed in intraday trading, you’ll need some rules. Always plan your trades by defining entry and exit points based on technical indicators, support and resistance levels, and your risk tolerance. Stick to these points to avoid impulsive decisions. Remember, options trading can involve significant risks. Assess your risk tolerance and only trade with funds you can afford to lose. Stay updated by following financial news, subscribing to relevant newsletters, and monitoring economic calendars

Tips to Help You Excel in Intraday Trading

For intraday trading, it’s essential to choose liquid stocks with high trading volumes. This ensures you can buy and sell easily. Before diving in with real money, use demo accounts to practice your strategies. This helps you gain experience and build confidence. And always, stay disciplined. Intraday trading requires discipline to follow your strategies and rules rigorously. Avoid emotional trading and keep a trading journal to track your progress and learn from your mistakes.

FAQs About Intraday Trading

1. What exactly is Intraday Trading?

Intraday trading is when you buy and sell stocks all in one day, aiming to profit from quick price changes.

2. Which strategies are best for Intraday Trading?

Some popular ones include trend following, breakout trading, range trading, and scalping.

3. How can I manage risks in Intraday Trading?

Always know your risk level, use tools like stop-loss orders, and never risk more than you can afford.

4. Is it common to trade multiple times in one day?

Yes, especially in intraday trading, you’ll often make many trades in one day.

5. How do I pick stocks for Intraday Trading?

Look for stocks that are traded a lot and have price changes throughout the day.

6. Is Intraday Trading good for beginners?

It can be complex, but with the right education and practice, even beginners can get the hang of it.

7. How can I stay updated on market news?

Follow financial news sites, sign up for newsletters, and keep an eye on economic events.

8. What’s scalping in Intraday Trading?

Scalping is making many trades in one day, all for small profits.

9. Can I use software for Intraday Trading?

Absolutely! There are many tools and platforms out there to help you make informed decisions.


Intraday trading offers the excitement of short-term price movements and the potential for quick profits. However, it also demands discipline, risk management, and a deep understanding of trading strategies. By employing the right strategies, following established rules, and heeding valuable tips, you can navigate the challenges of intraday trading and optimise your chances of success.

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