Top 5 intraday trading strategies to book profits on the share market

 Intraday trading is all about buying stocks and selling them on the same day, and if you want to book profits, you need to make sure that you have good intraday trading strategies. It doesn’t matter whether you’re doing manual trading or automated trading; having good intraday trading strategies is a must. Let’s take a look at some of the best strategies that have proven themselves time and again.

Opening Range Breakout (ORB)

This is a strategy that is utilized by both amateurs and professional, experienced traders. If you combine this strategy with the proper use of market indicators, accurate assessment of market sentiment and unyielding rules, you’ll be able to gain maximum profit out of this strategy. Opening Range Breakout (ORB) has numerous variations and it depends upon the traders, how they want to utilize their strategy.

Mapping Resistance and Support

Opening range refers to the fluctuation of the stock price that happens for every stock for the starting 30 minutes of the trading session. The highest price during this period is referred to as the resistance level and the lowest price is referred to as the support level. The best time to buy is when the stock price goes beyond the opening range high and the best time to sell is when the stock price drops below the opening range low.

Demand-Supply Imbalances

One of the most important algo trading strategies for amateur traders is to look for stocks where drastic demand-supply imbalances exist and mark them as entry points. The financial markets out there abide by the usual demand-supply rules. This means that the prices of the stocks fall when the demand is low and rises when the demand is high. As an intraday trader, you must learn to recognize such points.

1:3 Risk-Reward Ratio

As an intraday trader, you can’t hope to make profits by turning the other way on seeing risks. A successful trader is one who knows when to take risks and in what percentage. This is why, as an amateur, you must learn about the risk to reward ratio. As a rule of thumb, stocks that provide a potential risk to reward ration of 1:3 are good for booking profits on the stock exchange. If you follow this strategy, you’ll be able to book huge profits at the expense of small losses and it will allow you to make overall profit even if you have suffered losses on most trades.

Relative Strength Index (RSI) and Average Directional Index (ADX)

By working with these two algo trading strategies in tandem, you can create great buying and selling opportunities and book huge profits. While the RSI help you determine over purchased and oversold stocks, the ADX is used to determine when the prices are showing strong trends. For most of the cases, if the RSI crosses the upper limit, it is an indication to sell the trade and vice versa in the opposite case. 

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