A.2. Intrday Trading?

🔊 Listen

 

💼 What is Day Trading?

Day trading is a trading style where buying and selling of financial instruments happens within the same day, before the market closes. The goal is to capitalize on short-term price movements in stocks, forex, crypto, or other markets — without holding positions overnight.

📌 Key Characteristics of Day Trading:

Feature Description
Holding Period From a few minutes to several hours, but always closed before market close
Objective Profit from intraday volatility
Markets Used Stocks, Forex, Commodities, Crypto
Tools Required Charting software, news feed, fast trading platform
Analysis Used Primarily technical analysis, sometimes news-based events

⚙️ Example of Day Trade:

  • Buy TCS shares at ₹3,500 at 10:00 AM
  • Sell them at ₹3,540 at 1:00 PM
  • Profit: ₹40 per share (minus brokerage & taxes)

📈 Common Strategies in Day Trading:

Strategy Description
Momentum Trading Riding a stock that's moving strongly in one direction
Breakout Trading Entering when the price breaks above/below a key level
Reversal Trading Betting on price turning direction after extreme move
Gap & Go Trading stocks that gap up/down due to news
VWAP Strategy Using Volume-Weighted Average Price as entry/exit guide

✅ Prosess of Day Trading:

  • No overnight risk (like gap downs or bad news)
  • Daily income potential
  • Works well with technical setups
  • Ideal in volatile markets

❌ Cons of Day Trading:

  • Emotionally intense
  • Requires fast decision-making
  • High brokerage and tax costs (especially in India)
  • Risk of overtrading and burnout

🧠 Who Should Consider Day Trading?

  • Traders who can monitor markets during trading hours
  • Those with good technical analysis skills
  • Individuals who are disciplined and emotionally strong
  • People with high-speed internet and fast platforms

📋 Tools Most Day Traders Use:

  • Candlestick charts (1-min, 5-min, 15-min)
  • Indicators: RSI, MACD, VWAP, Bollinger Bands
  • Real-time news and earnings reports
  • Level 2 data / order book
  • Risk management systems (like stop-loss & target orders)

Would you like:

  • A beginner’s day trading checklist?
  • A comparison between day trading vs swing trading?
  • Or a sample day trading strategy with indicators and setup?

Low Capital Low Stoploss Intrday Trading: Strategy 



Comments

Post a Comment

Popular posts from this blog

A.4. Position Trading?

🔊 Listen   📊 What is Position Trading ? Position trading is a long-term trading strategy where traders hold positions for weeks, months, or even years to profit from major market trends . It’s the closest strategy to investing , but with active trade decisions based on macroeconomic factors, technical analysis, or fundamental changes. 📌 Key Features of Position Trading: Feature Description Holding Period Several weeks to months (even years) Trading Frequency Low – few trades per month or quarter Goal Capture long-term price trends and ignore short-term noise Analysis Used Fundamental , macro trends , and long-term technical analysis Patience Required High – trades are not closed quickly 📈 Example of Position Trade: Buy Infosys at ₹1,250 based on strong quarterly results and future tech outlook. Hold for 6 months as price moves to ₹1,600. Profit = ₹350/share (excluding brokerage and tax) 🧠 Tools Used by Position Tra...
Read more

Tools for Trading: All

 Tools: All A. Stock Selecting Indicator: RSI indicator   Trend Reversal (monthly) Breakout Stock (monthly)   Stock Cash buy: long time holding  Channel: Ask Dinesh Kumar (CPR Trading) https://youtube.com/@askdineshkumar?si=Fh4b0rzDp-cPQSVj Video  https://youtu.be/lq9OwJuuQ9g?si=-O-HbPww_61t_CUc CPR Setup required- Trading View > Product > Screener > Stock Screener > Click > Data Page > Filter > untick current trading day > untick primary listing > Exchange > NSE > index> click any > country> India > click on technical > select new alltime high, select new 52 week high > final list data after filter > check on clicking volume by  more than 1 Lak shares > refiltered short list opened > short list it now > check using CPR Setup > add to watch list your shorted stock > find Breakout position > by the stock  B. Share Selecting Indicator  C. Trend Indicator GFS, RSI: for intraday ...
Read more

🔗 RSI Divergence Indicator

 RSI Divergence Indicator: Channel:  Video  https://youtu.be/2bHtkFnK0AM?si=8hxAFKUaF8x0wdjN Channel: mahatmaji technical https://youtube.com/@mahatmajitechnical?si=dZIJ7G-JkvNR4uDa Video  https://youtu.be/YHBaEjZ4opU?si=dUNTUMyz4VMW44nw RSI (25): Indicator for intraday trading  Settings: Buy: Call- Cgg Put-  Dfgg Sale:  Call- Cgg Put-  Dfgg
Read more