Before knowing about the best Intraday trading strategies in India, let’s understand a basic fact that there are more than 15 million intraday traders in India with a market size of over 4500 crores. There are thousands of DEMAT account holders who daily enter the world of intraday trading. It is amongst the most practiced trade form in Indian markets.
However, intraday trading also has its own set of risks which is also very high. Intraday trading requires quick decisions and executions which are usually not possible for everyone to make. It also requires to dedicatedly spare time until and unless you square off your position, because if the same is not done by market closing time, the broker automatically exits the intraday position at the time of market closure at the price available at the moment.
There are certain strategies, which can be beneficial for every intraday trader, right from a noob to a pro.
Best Intraday Trading Strategies
- Investing in large quantities is the one of the best intraday trading strategies: A high liquidity stock means that there should be plenty buyers and sellers for that stock. So, you should make sure that the stock you are trading in is liquid enough which will make it easier for you to close and exit your position by the end of the day.
- Own Your Trade: Details of stock’s holding pattern are available on the BSE and NSE exchange. A closely owned stock, i.e. a stock with a very few operators like brokers having 70-80% share, can be highly volatile and thus can reduce your chance of having a successful trade. A stock should be always widely owned, which in turn helps in minimizing risks.
- Set a stop loss: A stop loss is a trigger which will automatically square off your position if it falls or rises below a specified limit. It is one of the most important factors in an intraday trade to minimize risk. As the name suggests, it helps to stop your loss after a specified limit. In a volatile market the stock prices can rise or fall sharply incurring huge losses.
- Achieving the target: The time to close or exit a trade in case of intraday is very limited and thus you should be very quick and observant.
- Momentum Intraday Trading Strategy: Intraday trading is all about momentum. You need to identify stocks before they make a big move and be ready to grab the movement as soon as it is made.
If you are new to trading and don’t have enough experience of market trends and trading it is better to take guidance from a SEBI registered investment advisor who can guide you with the trade. There are various SEBI registered and renowned investment advisors like CapitalVia who can help you in guiding you with Intraday trading strategies by providing research-based advice and levels for intraday trading. These intraday trading strategies can be beneficial but whenever you invest or trade in the market your capital is at risk. It is always better to enter the market with proper research and guidance.