Getting the intraday trading basics right is very important for every trader especially the beginners.
Now-a-day’s there is so much material and resources on internet that people get confused with what to follow, what to learn and ultimately what to implement. If you are seriously wanting to take up intraday trading, then there are certain basic factors that one must focus on to create regular income from it.
Intraday trading certainly is not a big rocket science which can’t be mastered by people from different domains or a layman. Anyone can learn and master it provided they know what exactly to look for.
There are few important factors to focus on and few questions for which every intraday trader should have answers.
If you have found the answers to these questions then you are already a successful intraday trader:
1. Do you have a process/method/strategy to pick right stocks for the day?
2. Do you have method to determine proper trade setup in a stock.
A Proper trade setup means- (a) direction of the movement of price i.e up/down. (b) entry price for the trade (c) Stoploss for the trade (d) Target to book profits for the trade.
3. Do you know how to pick stocks for various market conditions?
How to pick trade setups when markets are opened with Gap up or Gap Down for the day?
How to pick trade setups when markets are trading flat after Gap up or Gap Down opening?
How to pick trade setups when markets are flat for the day?
How to pick trade setups when markets are volatile?
4. Do you have a trading system to make daily income from indices like Nifty and BankNifty (Futures & Options segment).?
5. Do you have a trading plan which helps in systematically scaling up your daily profits as your trading capital increases?
Checklist that will determine whether you are ready for intraday trading:
There are 4 very important parts that one should look for in a good intraday trading system
Part A: Method to select right stock and a proper trade setup.
Intraday trading is all about making profits within minutes/hours of entering the trade.It’s extremely important for a day trader to be in right stock and at right price so that not to get stuck in any wrong trade. Traders make money with both rising and falling prices. So a good intraday trader should be able to pick right stocks as per rising and falling markets – this is what essentially called as “Trading The Trend”.
Part B: Money management rules: Accuracy and Risk-reward compatibility.
Whatever trading system/methodology you use, it should have proper compatibility with respect to your accuracy/success rate of trades and the risk-reward ratio that you follow.
Part C: Method to quickly check trend of the day and also the exact trend at the time of trade execution.
For intraday trading it’s very important to quickly analyse Trend of the Day and even the prevailing trend at the time of placing an order. Going against the trend should be avoided. There should not be any emotional attachment with the stock, even if it’s fundamentally good stock. Our relationship with the stock is just for few hours or rather few minutes, if the Trend is not favouring the trade better to not go for it. It hardly takes 5 seconds to check the trend, no need to hurry into any trade based on news or anything.
Part D: Method to control your EMOTIONS. Yes this is one of the biggest problem that many day traders fail to solve.
How do you control your emotional factors like fear, greed, hope and anxiety during trades?
Good news is these day’s we have proper technological tools to solve this problem. One of them is trading in Bracket Order Segment – i.e Placing your Stoploss, Target and a Trailing Stoploss all at once during the order execution time itself. This completely removes emotional hurdles from our path, It almost automates all your trading process.
In fact I have been telling in top of my voice that – “Keeping Price Alerts” (so that one doesn’t miss good trading oppourtunities) and Use of “Bracket orders with trailing stoploss” are the biggest technological boon that we intraday traders have got.
If you are not using these Two Powerful Technological Tools in your intraday trading system then you are doing it wrong. Once you realise the power of these tools you will never look back.
Tool 1: Price Alert System : Once you have found out proper trade setups with your stock picking methodology. Next step is to create Price Alerts for them so as not to miss those trades.
Tool 2: Bracket Order segment with Automated Trailing Stoploss: Automate your entire trade execution and trade management process with this.
What ever trading methodology or system you use, whether it is based on usage of technical indicators or plain price action concepts – one must have answers to all the above questions.
These are the only problems that an intraday trader should find solutions for.
Once we know what the real problems associated with the intraday trading are – it becomes easy to focus on finding solutions for them.
The day one is ready with the answers – he/she will see guaranteed success in intraday trading.
Again we get question from lot of people on what are the best technical indicators for intraday trading?
The answer to it is very simple and can be given in just one line.
No Technical indicators are required to successfully trade intraday.
In fact, I recommend everyone who wants to perfect a intraday trading system to fix this in their mind like a thumb rule – Absolutely ZERO Technical Indicators are required for Day Trading.
This is important because once you stop looking for any such technical indicators (which are mostly lagging ones) then only you will focus on the real workable things – Pure Price Action Concepts.
Yes learn, practice and master trading system based on Price Action Methods – and you are more quickly going to reach the level of success in day trading which you always dream of.
What kind of trading methodology one should look for ?
A trading methodology which is very simple to use in any market condition.
Simplicity rules everywhere, in intraday trading also simplicity of usage has to be the basic feature of any system.
So What kind of simplicity are we looking for?
- Simplicity in screening/picking of stocks.
- Simplicity in determining the right trade setups.
- Simplicity in execution of trade.
- Simplicity in Risk and trade Management process,
- Simplicity in achieving our profit targets in quickest of time and not to get stuck with any trade for too long.
Now, the biggest question how to get everything in single system?
You will have to keep learning Price Action methods, keep testing them, keep tweaking it, keep improvising it…till you design a proper trading system to suit your personal financial targets.
Or if want to save time and reduce your learning curve and get everything in platter then you can immediately get solutions to all the above mentioned problems .
Get a ready-made-time-tested-simple-reliable powerful price action trading system in under 15 minutes on your smartphone/laptop/computer.
A powerful price action based proprietary trading system to make guaranteed consistent profits on daily basis.
What you require:
- Only a smartphone with 3G/4G data connection.
- Capital of Rs. 10000-25000.
- Doesn’t matter whether one is a beginner, newbie or already have any experience/knowledge of Stock markets.
- Everything that is necessary to make daily income from trading is explained in step-by-step manner right from the beginning.
- No time wasting theories, no complicated technical analysis, no confusing/lagging technical indicators.
- Accuracy over 90%, Good risk- reward ratio.
- Completely Ready-To-Use-Trading-System.
- Use the exact step by step methodology to make steady, consistent daily income.
- Take it as part time activity Or take it as full time business to trade from anywhere, anytime on your smartphone itself.
Moreover it is perfectly scalable profit model.
One is not suppose to keep trading to achieve Rs.2000-4000 per day of profit for long. A proper trading model should help you with systematically increasing and achieving a higher profitability on continuous basis.
As your trading capital increase, so should your daily trading profits too.
Your profit Scale-up Graph should look like the one shown below:
And let me assure you, that it is quite easy to achieve once you have perfected a trading system that is in your complete control.
A trading method that requires large capital to start with is also not desirable. If your trading methodology is strong it should work on Capital of Rs. 5000 as well as Rs. 50 lacs.
Here’s how a strong, high accuracy trading system helps in generating steady income even with capital of Rs.10000.
Want to discuss more on it ? Want to get hold of a trading methodology which will guarantee success for you in intraday trading ?
Do visit Tradvantage Academy.