What is Intraday Trading and their strategies

As opposed to investing, intraday trading is the act of purchasing and selling shares on the same day of a stock market. Market indices are used to earn profits through day trading, also called index trading.

Market movements are predicted by intraday traders to earn quick profits instead of investing. It is possible to trade almost all types of stocks using this method. But the question here lies is what is Intraday trading exactly and is it profitable?

An example will help us understand the concept of intraday trading: in the morning, a stock is priced at 500, and by evening (3:15-3:30 PM), the price is 550. If you sell all your stocks by evening (3:15-3:30 PM) after purchasing 1000 shares of the stock in the morning, then you will earn 50,000 dollars only after a few hours. This is how Intraday trading works.

Even though intraday trading may seem like an interesting way to make money, can government employees do intraday trading? According to Section-16 of the Central Civil Services(conduct) rule 1964, government employees cannot do Intraday trading.

Intraday Trading Strategies

Most traders have questions regarding How To Make Money In Intraday Trading? You can use various intraday trading strategies which can minimize losses and maximize profits. Some of the intraday strategies are:

1.. Scalping

An Intraday trader can multiply profits by using this strategy because small changes in stock prices can result in large profits in a day. Traders who execute exit strategies well can multiply their profits by scalping.

Candlestick patterns, MACD, Supertrend, and RSI indicators are very important for executing a scalping strategy.

2.. Range Trading

A range trade allows day traders to identify the range of stocks they should buy and sell in a short period of time. As well as identifying oversold and overbought zones, this trading technique helps traders identify resistance zones and support zones.

These zones are identified by intraday traders by analyzing indicators and buying assets during oversold or resistance periods and selling them during overbought or resistance periods.

3.. High-Frequency Trading

The complex algorithm used in this trading method allows multiple orders to be placed in a fraction of a second. A complex algorithm is used to analyze and place orders based on multiple market conditions

Companies can place multiple orders in seconds using this strategy, creating liquidity in the market.

4.. News-Based trading:

The objective of this strategy is for traders to identify and profit from events that could affect stock prices by using multiple news sources.

It is possible for traders to profit from the news that Company A plans to acquire Company B, for instance, by using the news to their advantage.

In a single day, an Intraday trader can make profits from the stock market by using these Intraday trading strategies.

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