Unconventional Intraday Trading Tips You Need to Try Right Now

By Akshay Sharma July 10, 2024 Business

The realm of investing has drastically broadened in recent years, creating a plethora of opportunities for investors of all kinds. Intraday trading has emerged as one of the most profitable and intriguing aspects of this broadened spectrum, especially for those who thrive on quick decision-making and competitiveness. However, for every successful intraday trader, there are probably dozens who have failed before even tasting success. So how can you tilt the scales in your favor? Here are some unconventional intraday trading tips that you should consider trying out.

Before we delve deeper, let’s first grasp the shares meaning in the context of intraday trading. Shares generally represent ownership in a corporation, signifying a claim on part of the corporation’s assets and earnings. In intraday trading, traders buy and sell these shares within the same trading day. The goal is to profit from the short-term price volatility, any profits or losses are realized by the end of the trading day, usually in the currency of the market, in our case, INR.

Intraday trading is not for the faint of heart. It requires a calculated blend of technical analysis, market knowledge, and intuitive decision-making born from experience. The goal is to capitalize on the quick buy and sell strategy, taking advantage of small price fluctuations across the day. Armed with these insights into shares meaning and intraday trading, let’s dive into some unique and useful tips for successful trading.

Firstly, consider creating a detailed trading plan and sticking to it rigidly. While this might seem like conventional advice, the unconventional element lies in the level of detail of the plan. Each trade should be premeditated, with entry and exit strategies thoroughly planned and stop-loss levels defined. The plan should include the total amount you are prepared to lose in a day, week and month. Follow your plan meticulously to the last INR and avoid impulsive decisions fueled by market frenzy or fear.

Secondly, engage the power of technology to stay ahead. Algo trading, an advanced form of intraday trading, allows users to input specific rules for trade entries and exits which once programmed, can be automatically executed via a computer. For instance, you could set the computer to sell 100 shares of a particular stock when its 50-day moving average goes below the 200-day moving average. From tracking market trends to executing trades, this can save traders both time and stress.

Thirdly, pivot point trading is also worth exploring. This technique allows traders to identify significant price levels that the market is expected to respect, creating actionable buy/sell signals. For example, if the market opens above the pivot point, a trader might go long (buy) until the price reaches the first resistance level. Conversely, if the market opens below the pivot point, a trader might go short (sell) until the price reaches the first support level.

Lastly, use volume as an indicator. High trading volumes often point to the start of a new trend in a stock. Liquidity is a crucial factor in intraday trading as it impacts the ability to enter and exit trades easily. Checking the volume and spread of a stock can guide your decision-making process.

While these unconventional tips may provide a fresh approach to intraday trading, it’s important to remember that every strategy carries its own set of risks. Trading in the stock market, especially in the volatile world of intraday trading, involves a substantial degree of risk. It is crucial to fully understand these risks and seek advice from a financial advisor before venturing into the world of intraday trading.

Intraday trading is an exciting and potentially profitable investment strategy, but it requires careful planning, diligent research, and a strong understanding of the market landscape. With these unconventional tips and the right mindset, you can navigate this fascinating world with better confidence and success.

Disclaimer: This article is intended for informational purposes only and does not constitute financial advice. Always do your own research and consider your financial situation carefully before making investment decisions. Trading in the Indian stock market involves risks and investors must gauge all pros and cons before making any investment.