Intraday Trading Strategy

This article is all about intraday trading strategies. It is a strategy for a beginner who is new to the market. The beginners could have made investments and acquired both profits and losses. If they want to trade within a day they can follow this type of strategy. This is a basic strategy and you can make it advanced by filtering and obtaining success through constant practice.  This strategy can be attended with trading products like Nifty, Bank Nifty, Crude oil, Stocks, and Stock options. 

Open low and open high strategy
When the market is open low then you can buy. For instance, when a stock is open at Rs.120 and low at Rs.120, the market goes up for 15 minutes and in the next 15 minutes there is the scandal and the time frame is about 15 minutes.  When the market remains constant for 15 minutes then you can buy the stock by considering the open and low as stoppers. You can make use of the ratio as 1:2. When you expect a profit of about Rs.2000, you must also be ready for a loss of about Rs.1000. Initially, you can attend the trade using stocks and once you get familiar with it then you can even attend to stock options. The condition must be that Nifty 50 stocks should be taken as a priority.  For options, you need higher liquidity and more buyers and sellers. Hence it is preferable to choose Nifty 50 stocks. When you are buying at an open low, then you should monitor Nifty that it should be positive or even about 0.5%. When Nifty is 1% negative then you should be careful because it is against buying at open low strategy.

This strategy can be understood even better with the following examples. I have considered Tata Consultancy Services. When the open low is the same, then you can buy the stocks. On today, at 9:15 am, the open and low is 3535.5 so that you can buy the stocks. The second condition is that it should break out of yesterday’s high. Yesterday’s high was about 3563. Hence you can buy above 3564 which is initiated at 9:45 am. When you buy above 3563, on this day around 10 am, the day’s high is about 3590 which yields 25 points profit in TCS. You can buy 25 stocks for practice and you can also initiate a call option after gaining some experience. The two conditions to be followed are, the open low should be the same and it should break out of yesterday’s high. If you are technically sound, you can draw this as a diagram by touching all the bottoms to obtain an uptrend formation or if you are using an indicator, you can draw the exponential moving of 20 days to obtain the buying trend. The super trend indicator also shows the buying trend. Thus you can use this strategy efficiently. 

This example is about Marico Ltd. On today, the open high is the same and you can sell. The open is about 537.7 and the high is also the same. The filter here is low which is 529.09 and it should break out yesterday’s low. Yesterday’s low was 521.8. The condition has broken out both yesterday’s low and also today’s low. When you sell this market the low would be up to 523.45 which is a good profit. Since it is in a swing or downtrend, you can carry forward it to the next day or you can take positions for one or two days. You should trade on following the trend. The trend of formation should be clear on both yesterday and today. 

For example, here is a super trend indicator that indicates the downtrend, and also using the 20 days average follows the downtrend. When you want to use more filters you can use Nifty 50 because of its high liquidity. When you are going to initiate buy, you have to monitor whether Nifty 50 is positive of about 0.5% and when you are planning to initiate sell, the Nifty 50 should be negative of about 0.5%. When the benchmark and the stock you choose both are negative then it is an advantage. You might have doubts about whether to close this trade intraday, when you obtain a profit in the ratio of 1:2 then you can exit the trade. When you keep a stop loss as 2000 then you can expect a profit of about 4000 in options. Suppose in the cash market, it is mainly based on quantity. When you expect a profit of about 500 then your stop loss must be 250. When you feel the trend is clear and the Marico is at a downtrend then you can carry forward it to three or four days. When you open by tomorrow and Marico is still at a downtrend then you can stay at the sell trend or when it does not match the condition then you can exit. When you want to swing the position you can opt for carrying forward but you must maintain the stop loss strictly. If you have doubts kindly contact the number given in the description. The advancement of this strategy will be in the next videos. 

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