Intraday trading, which is commonly referred to as day trading, is the process of buying and selling financial instruments on the same day. As exciting and potentially lucrative as it is, however, it can also be very daunting for beginners. If you’re a beginner in this frantic world of trading exchanges, it won’t be only your capacity to read charts and to understand the technical analysis of the market that will bring you to success, but the right strategies having to be been chosen and implemented.

Here, we will be discussing ten of the must-have intraday trading strategies that every novice making an entry into the field of swing trading should know. These strategies are going to be a foundation for your trading career, and they will help you develop skills, and your instincts, and make informed decisions.

Trend Following Strategy: Surfing the Waves of the Market

One of the most straightforward ways in intraday trading is the trend following way. The idea is simple – identify the current trend in the market, be it up or down, and trade in that direction.

Key Steps:
Identify the Trend: Use moving averages (e.g. 50-period or 200-period) or trendlines to identify whether or not the market is in an uptrend or downtrend.
Confirm with Indicators Use indicators such as the Relative Strength Index (RSI) or Moving Average Convergence Divergence (MACD) to ensure that the trend is strong.

Entry & Exit In a trend:

Make entries when the price is going in the trend. In fact, exit the trade when there are signs of a reversal such as breaking through support or resistance levels
Example:
If the stock is in an uptrend and hits a certain resistance level with force, then consider getting into the trade and putting on orders for another price specifically on the strength of movement.

Breakout Strategy: Capturing the Momentum

A breakout is a price movement where a major level of support or resistance is broken and this is often followed by a significant movement in the same direction. Breakouts are great in order to capture big price moves early on.

Key Steps:
Key Support or Resistance Levels Target: Horizontal support and resistance levels can be identified on the price chart.
Wait For Confirmation: Make sure when the price closes above resistance level (for long trades) or ends below support level (for the short trades).
Volume Confirmation: High volume on breakout is another tool to demonstrate the move is strong.
Example:
A stock that’s been trading in a range breaks above an important level of resistance and the volume spikes. This is a possible breakout trade entry point.

Range-Bound Strategy: Trading in Consolidation

The range bound strategy is best used in markets that aren’t trending, but consolidating in a defined range. The objective is to buy on support levels and sell on resistance levels.

Key Steps:
Determine the Range: The Remanence lines you have drawn create the lines to identify the range, which is determined by using the beginning point and the end point of the Remanence line.

Entry & Exit To buy near the support level and sell near the resistance level. Another option is to short the stock near resistance and cover near support.
Example:
If a stock continually bounces back off of a support level, it is a good indication that the range is holding. Consider going long on trade at support, and exit at resistance.

Scalping: Quick, and Small Profits

Scalping is one of the quickest trading strategies in intraday trading, and it involves trading based on minor price shifts within a short time frame. This method calls for quick decision-making and also good knowledge of market liquidity.

Key Steps:
Find Liquid Stocks: Make sure that the stock you select is highly liquid and has low spreads.
Entry & Exit: Make entries when small and incremental price movements occur and quick exits for profits.
Example:
Scalpers may exploit a 0.5% to 1% move in a stock, making several trades in a day in order to add up small profits.

Momentum Trading: What is Momentum Trading

Momentum traders look for stock that are showing strong price movement, either up or down. These stocks are normally in play because of some news, earnings reports, or some other catalyst.

Key Steps:
Identify News Catalysts Look for stocks that have been in the recent news or witness heavy volume.
Indicators for Confirmation: Use indicators such as the RSI or Diagram as the MACD to get an idea of the strength of the momentum.
Entry & Exit: To get into a ULE style trade, one should join the trade when the stock is in a sustained move towards a particular side (clear directional strength) and exit when the thesis starts fading/runting (registered directional strength decrease in momentum).
Example:
A stock with a positive earnings reports spiking its price. Momentum traders get in on the wave of the momentum for as low as possible to ride the wave as long as possible before exiting once the stock starts showing signs of weakness.

VWAP Strategy: Volume Weighted Average Price

The strategy of VWAP involves the volume-weighted average price as a benchmark in the calculation of the fair price of a stock. Intraday traders use VWAP to determine possible points of entry and exit.

Key Steps:
VWAP as Support or Resistance It’s referred to as bullish when the price is above VWAP, and bearish when the price is below it.
Entry & Exit: Buy (When buy a stock) above the VWAP, and sell when it dips below the VWAP. Alternatively, short the stock when it’s trading lower than VWAP.
Example:
If a stock is trending upward and retraces down to test this VWAP, traders might buy that stock on the belief that it will come back up off of VWAP and continuing further to the right.

News Based Strategy: Strategy to Trade on News

Major news events like earnings reports, product launches or geopolitical events can have a drastic impact on the stock price. News based traders try to gain profit on trading these events.

Key Steps:
Follow the News: Keep track of financial news outlets, earnings calendars, and company-specific announcements.
Quick Reaction: News-based strategies are fast-paced in terms of decision-making. The stock price will often move fast and traders need to be able to take actions.
Entry & Exit: Enter the trade according to the immediate action of the price after the news and exit the trade when the market has priced in the news completely.
Example:
A pharmaceutical company has a new drug release. The stock price jumps 10%. A news trader will proceed to buy the stock post announcement and sell sometime after a few minutes when the price levels off.

Fading Strategy: Wagering on About a Reversal

The Fading strategy means passing against the general market trend. Fading the market theory is based on the premise that extreme moves are usually followed by corrections or reversal.

Key Steps:
Identify Overbought/Oversold Conditions: Use indicators such as RSI to identify stocks which are seriously overbought or oversold.
Entry & Exit: Trader enters when the stock has already gone too far in one direction and starts to turn around. gesetz stop-losses for risk management;
Example:
A stock runs higher but ends up overbought in the process, with an RSI reading above 70. A fading trader can now sell the stock short for a bet for a pullback.

Contrarian Strategy: How to Think Anew

Contrarian traders operate on the grounds that the crowd is almost always incorrect. This approach is a good one if the market is irrational or driven by emotions.

Key Steps:
Spot Market Overreaction: Look for instances when the market has overreacted to a news or event creating excessive high or low prices.
Entry & Exit: Enter when the market has crossed excessively optimistic/pessimistic levels and wait for a return to the normalcy.
Example:
After a sharp market decline of a stock, contrarians can buy into the stock, holding the opinion that the market overreacted and that the stock will eventually rebound.

Pullback Trading Strategy: Trading the Dip

Pullback is a style of trading that waits for a price correction in a strong trend. It’s a conservative way of entering a trade by looking for the best entry points during a short-lived price retracement.

Key Steps:
Trend Confirmation: Make sure that the stock moves in a strong uptrend or downtrend.
Entry & Exit: Wait for a pullback to a key support or resistance level. When the price begins to move back in the direction of the trend, go into the trade.
Example:
If a stock is trending up and pulls back to a previously support level, a pullback trader may purchase shares of the stock anticipating the trend to resume.

Conclusion

Intraday trading is an exhilarating way to make money from the finance markets, however, you should make sure you know that no approach is flawless. Beginners need to concentrate on understanding the markets and using the proper tools and put these methods to the appropriate thinking process. It’s also important to manage risk as the volatility of intraday trading situations means that you can easily stand to lose a lot of your money quickly if you’re not approaching them with discipline.

Odds are you are familiar with this wisdom – at first, you want to try them with simulated trades or at least very small amounts of capital. Over time, as you gain more experience, you’ll start to know what sorts of strategies work best for your trading style. Remember, the secret of success is not just to follow the strategy but to be good at adapting and evolving as a trader.