There are different types of Intraday trading strategies. It depends upon an individual trader to decide the suitable strategy to be adopted in Intraday trading. You have to pick the proper strategy depending upon your risk taking ability. Important Intraday trading strategies have been discussed below:
a) Momentum trading:
In this type of trading, the focus of the traders will be on stocks that are moving significantly in one direction on high volume. It is totally based on strong price movements and counter price movements triggered by news. Depending upon the stock movements and directions, the traders may hold their positions for a few minutes or even for couple of hours.
b) Breakout trading:
In Breakout trading traders usually buy the underlying asset when the price breaks the above level of resistance and heads higher. Intraday traders usually use the chart patterns in order to identify the break through a resistance level.
c) Pull back trading:
Pull backs are the buying opportunities for an Intraday traders. In this we see the fall back of price from its peak. It will be the brief reversal of an upward momentum. Its very important to analyze the pullback closely in order to determine whether it’s the sign of definite trend reversal or is it just a slight pause in an upward trend.
In this trading strategy the traders try to take the advantage of small price change. The aim of the traders will be to buy (or sell) a number of shares at the bid (or ask) and then quickly sell them at a four rupees higher for a profit. The traders can easily compound the small profits into large gains, if they follow a strict exit strategy.
In this strategy the stocks will be shortened after rapid upward movements. It may be because of the fact that they are over brought or the early buyers would have begin taking profits. This strategy is risky but at the same time it is highly rewarding.
f) Daily pivots:
In this strategy the traders will make an attempt to buy the stock at the low of the day and sell it at the high of the day. Its nothing but taking the profits from stocks daily volatility.
If you are not sure about the strategy to be adopted in Intraday trading , then search for the reputable stock advisory company which provides sure shot Intraday tips . In this way you can earn money from Stock market.