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"Intraday Trading Strategies: A Smart Approach for Beginners"
Intraday trading is a type of trading where you buy and sell stocks or other financial instruments within the same trading day. It requires quick decision-making and an ability to read the market in real time. Here are some tips for smart intraday trading:
- First, analyze the daily chart of the stock or index to determine the overall trend. You can use line charts to understand the general trend direction.
- Then, move to smaller time frames such as 15 minutes, and identify the trend of the stock/index. You can check the advance/decline numbers on the NSE website to understand the trend.
- Based on the trend, identify stocks that are bullish or bearish. Wait for the price to come to the VWAP and try to take the trade. Also, check whether the market has made any Open=High or Open=Low.
- Check for any Bollinger Band trap. In case of a gap down the Bollinger Band trap, try to take a trade on the bullish side when the next candle to the Bollinger Band trap closes above VWAP. In case of a gap-up Bollinger Band trap, try to take a trade in the bearish side when the next candle to the Bollinger Band trap closes below VWAP.
- If none of the above is visible, look for an Open Range Breakout (ORB) effectively in 15 min timeframe. Then take the trade on the breakout side or breakdown side.
For trading in indexes like Nifty and Bank Nifty, take trades with one strike price lower than the spot. For example, if the spot is at 17500, go for 17400 CE for a bullish trade and go for 17600 PE for a bearish trade. Never take a naked buying unless you have made huge profits from the market. Hence, always hedge your trade with a corresponding selling of a strike price with 300 points difference in Bank Nifty and 150 points difference in Nifty.
Intraday trading can be profitable, but it requires discipline, patience, and the ability to read the market accurately. Remember to keep your emotions in check and always have a risk management plan in place.
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