t’s quite a decade since I'm trading and investing in Indian stock exchange and that I am sharing the best strategies for trading and investment. I shared the best stocks which have given huge returns in the past. I gave buy recommendations in Adani Enterprise when it had been 130–140 only and it reached up to 230 which was a huge return in 2 months. Still, people are sending many thanks messages for that sort of recommendation.
Now I'm Sharing my few points before you recognize intraday trading strategy :
Well, I'm trading during this market for a few years so I even have grabbed much knowledge after spending a lot of your time in trading. I learned a few things from Intraday trading which I'm mentioning below:
Intraday trading is totally risky so if a person is coming with only profit expectations or with sentiments, he/she shouldn't trade because the market will never understand your emotions.
Intraday trading may be a technique that may be learned and improved day by day so you've got to stay on learning every day.
Stock selection is a most vital part of intraday trading so you've got to settle on stock very wisely.
Intraday trading involves high risk which may give complete or partial financial loss so there should be risk calculation like 2 to 4% of the risk of entire capital during a single trade. Because if your trade goes into loss, you don’t lose quite that.
Never trade stock exchange with anybody’s money. Yes, this is often most vital while trading because I even have seen many of us who takes consumer loan or borrow money from someone and regret after losing that cash. you ought to trade together with your own spare money only.
Now I'm sharing a favorite strategy that isn't complicated for brand spanking newcomers and may generate good profit in intraday.
First of all, choose less volatile and liquid stocks for trading in intraday. I don’t prefer high volatile stocks which may trigger your Stoploss easily or don’t have enough volumes.
Let me assist you to settle on less volatile stocks which have good volumes also as they're not highly volatile. I will be able to choose Apollo tire if I even have to settle on from tire stock instead of Ceat or MRF. In the same way, I will be able to choose Ambuja cement instead of ACC or Ultratech cement. JSW Steel, VEDL or Tata steel in the metal sector. you'll choose a stock that has liquidity and less volatility.
Now you've got to seek out either that stock is bullish or bearish. For that, you simply need to check it’s a previous couple of days movement. If it's continuously bullish regardless of market movement, I will be able to buy that whenever I will be able to find it near day’s low or at lower levels. Example of today: TCS may be a bullish stock and it had been not falling with the market so it had been the best buying opportunity when it had been near low today around 1878. It made 372 low in the morning and made high of 1907 in few hours only. So this was the best chance to pick a bullish stock and patronize support.
So whenever you've got to trade for intraday, determine less volatile liquid stock and pip out at lower level if it’s a bullish stock or sells it if it’s a bearish stock. I never suggest shopping for falling stocks to shop for intraday. It’s completely risky to catch a falling knife. you'll get profit in some case but it’s against the trend which I never suggest. Buy only strong stocks that aren't falling with the market.
Reliance, TCS, Infy DLF and there are more which are strong and giving best leads to intraday if you purchase them near support. Don’t buy weak stocks in the bullish market.
Just buy strong and bullish stocks near day’s low with 1% Stoploss, you'll get good results. If you would like to sell, sell only weak stocks or those stocks which face resistance and follow a 1% stop loss. Don’t trade without stop loss.
Remember a few points while deciding about any trade:
Don’t buy falling stock or especially when it’s facing resistance because it can trap you and provides you big losses. The latest examples are PSU Banks which were falling continuously. Never buy them for intraday though it's attractive to you.
Buy only those stocks which are taking support and not coming down with the market and rising with the market so that you'll get good money in intraday.
Don’t trade stocks who have any quite news, results or any controversy because it’s completely gambling to trade like that. Like we see that Metals have negative news from the last 15–20 days, always avoid to trade this type of sector or stocks.
Always apply a correct stop loss while you initiate any trade and maximize your profit by modifying your stop loss to cost so that whenever a big movement comes, you'll generate a big profit.
I hope I even have solved and answered your question in the right manner. If you wish my answers, always upvotes and share it so that maximum people can get benefits.
In a bull call spread, you purchase a turn the underlying asset while simultaneously writing (selling) a turn an equivalent underlying asset with an equivalent expiration month at a better strike price. you ought to use it once you think the market will go up somewhat or think it’s more likely to rise than fall (in other words, you've got a bullish or moderately bullish outlook). Your likelihood for profit is restricted, as is your risk, because the worth purchased the decision with the lower strike price is partially offset by the premium received from writing the decision with a better strike price, so you've got less risk of losing the whole premium purchased the decision.
In a bear put spread, you purchase a placed on an underlying asset while writing a placed on an equivalent underlying asset with an equivalent expiration month, but at a lower strike price. you ought to use this strategy once you think the market will fall somewhat or is more likely to fall than rising, as you’re capitalizing on a decrease within the price of the underlying asset.
In a covered call (also called a buy-write), you hold an extended position in an underlying asset and sell a call against that underlying asset. Your market opinion would be neutral to bullish on the underlying asset. On the danger vs. reward front, your maximum profit is restricted and your maximum loss is substantial. If volatility increases, it's a negative effect, and if it decreases, it's a positive effect.