Know Your Trading

Know Your Intraday Trading

Long and Short Trade

For earning money a trader should have know the Basics of Intraday trading Strategy, such as market behavior, chart reading, technical indicators, support levels, pivots, resistance levels (which can be calculated using the pivot calculator) etc so that they will be in a better position to analyze price movements to initiate a trade position to make decent profits by knowing when to book a profit or when to exit a trade.

What is Intraday Trading Strategy?

In intraday Trading Strategy, a trader takes a position of either short or long trades in stock or indices or futures or commodities for a very short period of time and covers the position within the same day and not carry the position for another day irrespective of the resulting profit or loss.

What are Long Trade and Short Trade in Trading?

A long trade is the one where a trader initiates a trade for futures or options by buying first and selling it later for particular price futures and options or stocks or commodities. In a long trade, one makes a profit by buying at a lower price and selling at a higher price.

A short trade is the one where a trader initiates a trade by first selling a future contract or option and later buying it. In a short trade, one makes a profit first by selling at a higher price and buying at a lower price.

Usually, for long trades, it is better to buy at support levels and sell at resistance and for short trades sell at resistance and buys at supports depending upon the risk-reward ratio or their individual money management techniques.

How many years of Experience should an Intraday Trader have?

In order to make profits in intraday trading, one must acquire trading skills by watching videos of famous traders, technical analysts, watching webinars, seminars, learning from good traders, self-improvements, etc which one may get it from a few months to years depending upon their learning capabilities and money management techniques to make consistent profits. Traders also install Algo trading software which is integrated into the system, automatically trades as per the trading signals of the programmed trading software with systematic trading without any manual operation.

Can one make intraday trade offline without a terminal?

 For an intraday trader, it is always advisable to be online watching the price movement, indicators, and charts unless they are professionals, who place their trade orders, stops, cover orders for a particular time frame, or in autopilot. Offline trading or calling the broker and placing an order consumes time and by the time the order is placed the price may change or the required entry-price may not trigger due to time delay of the operator or time lag in the call.

How to Build The Best Intraday Trading Strategy? 

In intraday trading, each individual trader has their own day trading strategies which they have analyzed with their own experience or through trading tutorials or mentors and knowledge skills, money management techniques, and risk-reward ratio. One should be able to know the previous day’s close, candlestick patterns, moving averages, and other technical indicators to formulate a strategy to make consistent profits. A well-disciplined trader always makes money.

What is Paper Trading, How paper trading can be useful for profits? 

Yes, for a beginner  It is always better to start with paper trading, get accustomed to it and make consistent profits in the paper for over a period of time before making an actual trade with real money since it involves emotional experiences, the fluctuations in the market brings in.

Can Intraday Trading be done for all Segments?

 Intraday trading can be done either in the cash segment, derivatives futures or in the commodities segment.

Can one trade without a stop-loss order?

No, Even before entering a trade a trader needs to have an exit strategy and place a stop-loss order to avoid a drawdown in case of a failed trade. Taking a small loss is better than blowing up the entire account.

Best Time Frame, Technical Indicators

Selection of a time frame and time of the day is very important for day traders, some trade for 15 minutes, 30 minutes, one hour or two hour or whole day depending on their experience and skills, professionalism, capitalization, money management, etc. and stick to it irrespective of the outcome.

Studying the chart movements days support levels, pivot, resistance levels, moving averages, close of the previous day, open, high, low, average and volumes, the trend of the day, stochastic, MACD, RSI , William's % indicators will help to choose and pick the right stock to trade.

It is always better to select a liquid stock for intraday trading.

All trades cannot be winning trades so stop-loss is a must.
Before entering a trade one must have an idea of where to place a stop-loss order.