The world of trading is a difficult place to survive in, with as many unique and individualistic trading strategies as there are organisations which claim to be one of the Best Share Market Institutes in India. What makes profit for one person might not for another. In such an uncertain market, how is a person meant to thrive?
This article will be focusing on one of the most popular short-term trading techniques and its trading strategies – Intraday trading. Each intraday trading strategy relies on good observation and is taught by the best share market institutes in India. Let us look at five such intraday trading strategies.
Momentum Intraday Trading Strategy
One of the most effective intraday trading strategies, Momentum intraday trading strategy is one which is taught by the best share market institutes in India. It takes advantage of short-term price movements to earn a profit.
The speed and direction of the market will, however, dictate for how long the trader can hold on to the stock.
Reversal Intraday Trading Strategy
Using the Reversal intraday trading strategy, traders make a profit on the reversal of trends in the stock market. By effectively employing market analysis, traders identify the pullbacks and their strengths before placing bets against the flow of the market. In comparison to other intraday trading strategies taught by the best share market institutes in India, it has a good risk-to-reward ratio. An important factor of this strategy is the daily pivot of the charts.
Breakout Intraday Trading Strategy
Timing is everything when it comes to trading. Breakout intraday trading strategy uses this fact to create optimal results for the traders. Using this strategy, a trader needs to analyse the market trends and recognise the limit points of various securities. Depending on whether the price goes above or below the limit point, the trader either quickly buys or sells the securities. It is one of the most commonly used intraday trading strategies and is thus actively taught by the best share market institutes in India.
Moving Average Intraday Trading Strategy
In Moving Average intraday trading strategy, a moving average is the calculated average price of a stock over a period of a few days, and is constantly updated. Positive and negative news about the listed firms can affect the price of stocks, and move the price above (Uptrend) or below (Downtrend) the moving average. Traders predict whether there will be an uptrend or downtrend in the price of securities based on these external factors, then buy or sell accordingly. This is one of the basic intraday trading strategies which is taught by the best share market institutes in India.
Pivot Point Intraday Trading Strategy
Pivot point is another Intraday Trading Strategy which uses quick action and timeliness to great effect. A pivot point is a technical market indicator which traders use to calculate the overall trend in the price of stocks based on the average price and the closing price the day before, across different timeframes. This strategy is used to determine the points of entry and exit. It is one of the few strategies taught by the best share market institutes in India which can be used in critical and resistance level situations.
Through this article, we hope that the readers were able to understand just how much quick thinking and timeliness are required to use intraday trading strategies, and what to look for in the course when choosing one out of the best share market institutes in India to take admission in.
If you wish to know more about intraday trading strategies, visit the Booming Bulls Academy blog, one of the finest amongst the best share market institutes in India.