Intraday trading involves buying and selling securities within the same trading day. The goal is to capitalize on short-term market movements.
To master intraday trading, you must grasp key concepts such as price action, momentum, and volatility.
Technical analysis helps intraday traders identify entry and exit points based on market trends, support and resistance levels, and indicators.
1. Moving Averages (MA): Shows trend direction. 2. Relative Strength Index (RSI): Identifies overbought/oversold conditions. 3. Bollinger Bands: Measures volatility.
Use stop-loss orders and position sizing to manage risk. The goal is to limit losses while maximizing gains.
Look for stocks with high liquidity and volatility. Stocks that have large daily price movements and are actively traded are ideal.
1. Momentum Trading: Capitalize on stocks that are moving strongly in one direction. 2. Scalping: Make small profits by trading frequently in short timeframes. 3. Breakout Strategy: Trade when the stock breaks a significant support/resistance level
Intraday trading requires discipline, knowledge, and constant monitoring. Tip: Always start with a demo account to practice and refine your strategy before trading with real money.