The stock market has always been one of the most volatile and ever-evolving markets in history. Many people lose their money due to greed, or you can call it over-trading. For a profitable and stable trading portfolio, you need to know the technical indicators and the fundamental analysis. However, there are several types of trading methods in the stock market. Intraday trading, or day trading, is one of the most popular trading methods. 

Generally, the process of buying and selling a particular stock within the same day is known as intraday trading or day trading. But most people, lose their money in this trading method due to a lack of technical knowledge about the indicators. In this blog, we will delve into the details of how you can make consistent profits from this trading method. We will discuss some effective intraday trading tips that you can use in your trading portfolio to make it better. 

Some of the Most Effective Intraday Trading Strategies for the Best Profit 

Remember, strategies are not one-size-fits-all. Each trader has their own unique approach. Here, we will discuss some common but effective intraday trading strategies that you can adapt and tailor to your trading portfolio, giving you the power to make a difference. 

Momentum Intraday Trading Strategy:

The Momentum Intraday Trading Strategy, as the name suggests, hones in on significant changes in stock price over a short period of time. This strategy empowers traders to profit from short-term price movements by leveraging the stock's volatility. Understanding a stock's volatility is key for an intraday trader to take informed positions. Intraday traders can hold a trade for seconds, minutes, hours, or even the entire day, depending on the market direction.

Intraday Trading Strategies Based on Gap Theory

It is normal to find stocks that have no pre-market volume and open with a gap from the previous day. If the gap opens higher than the previous day's closing price, it is called the gap up; if it opens lower, it is called the gap down. In such cases, the news acts as a catalyst, causing the price to rise or fall quickly.

Intraday traders seek out such stocks and trade in them, believing that the gaps will close by the end of the day, matching the previous day's closing price. This strategy is ideal for those seeking small but quick profits with minimal risk. 

This intraday trading strategy is based on gaps. Gaps on stock charts occur when no trades are executed, which means that the stock price skips all of those points. These gaps can form due to a variety of factors, including news and earnings announcements from the underlying stock company. This is one of the most popular intraday trading strategies, particularly among professional traders. 

Breakout Intraday Trading Strategy

The breakout intraday trading strategy is the most widely used and successful intraday strategy. This intraday trading strategy involves monitoring stock prices as they rise above or fall below a predetermined level, resulting in an unusual increase in trading volume.

The Breakout Intraday Trading Strategy is heavily based on speed. It is one of the most important intraday trading strategies that does not involve waiting because intraday traders know whether or not the current trade will succeed.

It is all about observation. If the stock price rises, the intraday trader enters the trade, purchases the stock, and then sells it at the target price, and vice versa if the stock price falls.

Flag Intraday Trading Strategy

On an intraday basis, the stock price can rise dramatically for a few candles. Once the price reaches an extreme, an obliquely symmetric pullback begins, resulting in a price chart in the shape of a flag. This happens in the Flag Intraday Trading Strategy.

In the pullback zone, the channel's highs and lows are almost parallel. This is one of the most accurate intraday trading strategies. The flag pattern, as well as the upper and lower trendlines, require a lot of patience. Nonetheless, it provides traders with an excellent opportunity to profit before any other trend begins.

Pivot Point Intraday Trading Strategy

A pivot point strategy is useful for critical support and resistance levels, as well as in the forex market. Range-bound traders can use it as an entry strategy, while breakout traders can understand the breakout levels.

This intraday trading strategy employs a timeframe of 1, 5, 10, or 15 minutes, with pivot points marked by the previous day's high and low. Once set, these pivot points remain constant throughout the day. Instead, they serve as the boundaries within which the stock price is expected to move. If the price closes above or below the pivot points within the specified timeframes, we can use this intraday trading strategy with a tight stop loss and the next pivot point as the target.

Conclusion 

These are some of the most commonly used intraday trading strategies preferred by seasoned traders. For a consistent profit from trading, knowledge is the key. You have to get all the necessary information about all the technical indicators and theories. Most of the newcomers lose their money in the stock market just because of a lack of knowledge. Judge with all your senses before investing money in a stock. These intraday trading strategies completely depend on technical analysis. So read about them and implement a small amount of money for the best practice. After being confident about your skills, you are good to go all into the stock market. 

Faqs 

Which strategy is best for intraday trading?

Well, there are several intraday trading strategies available in the market. It is very difficult to state any of them as the best. But for a clear idea, here are some of the most commonly used intraday trading strategies:

• Momentum Intraday Trading Strategy

• Intraday Trading Strategies Based on Gap Theory

• Breakout Intraday Trading Strategy

• Flag Intraday Trading Strategy

• Pivot Point Intraday Trading Strategy

What is the secret trick to intraday trading?

The benefit that traders most enjoy about intraday trading is its leverage and high margin. Leverage and margins help to increase profits (and losses). However, the trick is to avoid becoming greedy once the target has been reached. Do not wait for the stock price to rise further if it has already reached your target price.

How can I earn 500 a day in intraday trading?

Intraday trading requires knowledge of technical indicators and market volatility factors. After gaining proper knowledge, implement it into your trading portfolio for the best profits. As an answer, you can easily earn 500 a day from intraday trading, but only after gaining knowledge. Otherwise, you will end up losing your own money.