Consistent Intraday Trading Strategy

Consistent Intraday Trading Strategy

Trend Reversal 

In setting up a Consistent Intraday Trading Strategy, a trader needs to learn to lose less and gain more in winning trades. 

All traders who are successful in intraday trading develop a strategy of their own, earning profits consistently with less number of losing trades, or lose less in their losing trades and gain more in their winning trades.

If you want to lose less or gain more in any trade you need to have the right entry and exit formula with the right time frame. If you master these techniques, surely traders start making money in any market.

A Consistent Intraday Trading Strategy will have

  • A good entry strategy
  • A good exit strategy

A good intraday trading entry strategy: 

A good entry strategy should have a good risk-reward ratio where you have good gains if the trade wins and a risk of small loss if the trade fails. In order to have a low risk, you should be able to analyze the chart, know the technicals, and evolve a strategy wherein you have a good percentage of gains.

A Good Intraday Trading Exit Strategy: 

 A good exit strategy is the one where you book good profits with the right target price, having stop-loss, having a trailing stop-loss, that suits their trading style, individual personality, and risk appetite.

In trading, the stock market whether it is Indices, Futures market, Cash market, Forex (Foreign Exchange), Commodities like gold, silver, aluminum, crude oil, platinum, and many other futures or stocks, profit-making is not an easy task nor there is any easy money. You need to build your own intraday strategy that works for you, your temperament, your funding capabilities, your risk-taking ability, and controlling your emotions.

Markets will not spare anyone. If trading is not done to a strategy, a set of written down rules and following a strict discipline with proper money management may eventually lead to huge losses, or a drawdown, affecting them financially, socially, and emotionally.

Trend Reversal Strategy:

To be successful in trading different traders have different strategies.
The best Consistent Intraday Trading Strategy is a trend reversal strategy with weighted moving averages cross over setups wherein you get a very good risk-reward ratio. If the prices move in your direction the rewards or the profits will be huge. For this entry, one must wait until a breakdown or a breakout happens in the right time frame preferably higher time frames like H1 or H4. But for this trading, waiting is money.  It will lead to a huge accumulation of gains in the long term if followed with strict discipline and determination, 


Consistent Intraday trading Strategy

Consistent  Intraday Trading Strategy

A consistent intraday trading strategy is not becoming rich overnight it is in getting a reasonable profit regularly and accumulated leading to a huge amount at the end of the month or year. 

One should not blame the markets after losing one's trade. Markets do not harm you if you have the right approach. Markets are always right, they do not have emotions but we have, markets do not make mistakes, but traders do! and repeatedly.

How to be a Disciplined Trader?

All trades cannot guarantee a profit, losses are bound to happen and nobody can predict a market. By learning money management skills, traders can control losses thereby consolidating the profits earned.

There are so many stocks moving in its own waves, depending upon the fundamentals, technical's, company news, results, and many other factors move in positive, negative or may not be moving so the question in a trader's mind is how to select best intraday stock for trading?.

 Entering a trade which is the easiest part with or without a strategy many times with gut feelings you enter a trade but exiting needs mentally trained and disciplined by knowing when to enter and when to exit a trade. If you do not want your trade to fail then you need to have the best setups with minimum loss and maximum profits by trading at the right time and best time frames for intraday trading.

If your trade runs into a profit everything is fine, but a loss, Cutting a losing trade requires mental ability to overcome strong emotions which most of the traders let lose the losing trades run until it explodes into their faces with a margin call or total erosion of capital so in order to avoid it take steps to know beforehand where to place a stop.

 If you have a good profit you feel on top of the skies, but if you had a bad day a loss or a drawdown or a margin call then it is very stressful and emotionally straining. How will you overcome depression? What attitude a trader should possess for a bad trading day?

 When in business loss and profits are part of the game. you will have to take both in the same spirit, learn from it and go ahead, do not carry the baggage. 

Accumulate capital slowly even in small amounts, but steadily, consistently, without greed see the results of compounding after few months.

 In order to succeed financially in trading one should build a Consistent Intraday Trading strategy that suits their trading style and individual personality.

Think, if 90 % of traders lose, then what makes the remaining 10% succeed? what do they have in them that 90% do not? 

Yes! they have a good and consistent intraday trading strategy, they follow with strict discipline, they follow and stick to their rules studiously, they control emotions, they prevent losses, they minimize their mistakes, they enter and exit to a predetermined written rule strictly. Building a consistent intraday strategy requires a lot of chart study, technical analysis, indicators patience to succeed, attitude, avoiding frequent repetitive mistakes, and learning from the past performance.

If you want to succeed in Intraday trading you need to adopt the following into your Trading Style.

  • Frame rules and follow before and during the trade.
  • Know the behavior of the market
  • Trade long in a bullish market and short in a bearish market
  • Pick the right stock
  • Add the right indicator in the chart
  • Have the money management system in place.
  • Avoid common trading mistakes
  • Stick to rules and cut losses
  • Trade only if the volumes pick up.
  • Be emotionally strong.
  • Choose the right time frame and time to trade.
  • Learn from professional trader's quotes and books.
  • Do not get distracted during trading hours.