Intraday Strategies That Can Net You A Good Profit
Intraday trading, or day trading, is a tricky form of business. If you want to start making it in intraday trading you have to be well aware of the risks. A well-trained day trader should know the various terminologies and ins and outs of trading. But that is neither here nor there because if you are reading this then you should at least know the basics. And with that knowledge, you should already know that there isn’t a get rich quick scheme to follow. Everyone, including you, needs to understand the trading process thoroughly. However, that does not mean that there are no intraday strategies you could utilize to your advantage.
You heard me right. There are strategies that are, more or less, effective in securing yourself a healthy profit. And you can learn this too. All you need to do is check this list out for the intraday strategies that can net you a good profit.
Intraday trading is a risky business. Just like any trade marketplace, you run the risk of over or underbuying. You may have bought it due to it being a trend or because somebody told you that it’s a great investment. Regardless, there are always people who tend to jump into the bandwagon too fast.
And that is where Range Trading strategy excels. This strategy is different from other intraday strategies. Because range trading focuses on support (overbought) and resistance (oversold) areas. This strategy is great in markets that are flexuous in its long term trend. And normally it shows that the market has no discernible long-term trend.
Have you ever collected those discount coupons where they slash a tiny amount on your bill? If you had, did you think you saved enough of those for it to be considered profitable? What people don’t realize is that those tiny bits of money saved can escalate into larger savings.
And that is where the Scalping strategy truly shines. This strategy is essentially making its profit from small price changes. The key to making this strategy work is learning when it is the right time to exit. A strict exit strategy is crucial. Because one large mistake could cost you all of your small gains. Having a live feed, direct-access broker and the wherewithal to trade for multiple sessions a day is essential.
The news is important. Everyone should be listening to the news. Whether it is for the weather update or for traffic, that information helps us in our daily lives. And it is with that news that helps us make decisions for the future.
And that is the basic fundamental concept of news-based trading. News-based trading is all about managing the mispricing of security in the market. The mispricing is normally a result of some news or events that have yet to be put into factor. Thus, the key takeaway from this strategy is to be on top of current events always to stay ahead. However, it should be noted that you should pick which news is worth a listen. Because some market news may end up having little to no effect. So strong risk management is advised.