Best Strategies For Intraday Trading (2024)

Market trading needs one to invest in the right direction and at the right momentum, and it is all about Momentum trading strategy. Investors pick the right stock before making a significant change in the market trends and investing accordingly. The choosing of stock is facilitated by news reports related to the stocks that can make the graph go either upwards or downwards. An intraday trader's role is to study such news before the market is available for the investment and then trade accordingly. An intraday trader needs to remember the data will either go upwards or go downwards depending on the external factors, and a quick decision is to be made in the form of investment. Based on the market direction's speed, investors can hold the security for minutes, hours, or the entire day.

Momentum trading strategy is great but requires speed in investments as soon as the news breaks out. Besides, how long the securities are held is completely based on the analysis of these market trends, which are to be followed closely and every day provided, the right decision is taken at the right moment.

One of the high and risky trading strategies, reversal trading, is not for beginners. As per this strategy, the investments are made against the trends. With the calculations and analysis, the trading will snap back and make a good profit. This strategy is highly not recommended for Intraday beginners as it requires a lot of experience and knowledge about the market. Besides, it is a difficult strategy as the investors need to correctly identify the pullbacks and their strengths. One of the supporting techniques in reversal trading strategy is the daily pivot which intraday traders use to focus on trading the daily low and high pullbacks.

In trading, timing is the essential factor, especially for intraday traders. In a Breakout trading strategy, timing plays an important role while making a trade decision. It involves identifying the threshold points when the stock prices rise above or falls below the specified time. If the trend continues to soar the prices above the threshold point, the investors consider long positions and buy the stock. On the other hand, if the prices fall below the threshold point, the investor considers short positions or sells the stock. The fundamental thought processing behind the breakout trading strategy is, if the prices cross the threshold points, they will be more volatile and continue the trend.

At times, it is common to find stocks that do not have pre-market volume and opens at a gap from the previous day. If the gap opens higher than the previous day, then it is called the gap up, and if it opens lower than the previous day, then it is called gap down. Such situations occur when news acts as a catalyst. Intraday traders look for such stocks and bet on them, believing the gaps will close by the end of the day. This strategy is great for one who wants short and quick profits but not much risk.

Stock market trends are one of the hottest indicators of how the market performs, but there needs to be a differential point; one such is the moving average. When the values go above the moving average, it is known as the uptrend, and if the values are falling below the moving average, it is known as the downtrend. The key in moving average crossover strategy is to pick such stocks at the right moment. These can be worked upon with the help of the catalysts, such as news about the stocks directly or indirectly.

Final Words

There are several strategies for intraday traders, but these are some of the best and most used. Reversal trading strategy is one of the most difficult where the intraday trader chooses to go against the trend while in other strategies, traders are supposedly along with the trend. The key to successful intraday trading is to invest quickly and watch the market trend, and the final step is to decide at the right time.