Intraday Trading Tips and Strategies

One common strategy used by intraday traders isone, expecting that the trend will change.
shorting stocks rather than buying, in shorting hopingNews Playing: every one of us knows that every
that the price will fall the trader borrows stock fromnews regarding any stock or company or even its
his broker and sells the borrowed stock. However,sector has a positive or negative affect on its prices
there are some technical problems with shorting likeand movement. Thus the basic trading tips or
the broker may not have shares to lend in astrategy which the news player follows is to buy a
particular issue.stock which has just announced good news, or short
Other Tips and Strategies:sell on bad news
Trend following: this is a strategy which is mostScalping: In scalping the intraday trader tries to exploit
commonly used, in this the trader assumes that thethe inefficiency of the market when the trading
stock which has been rising steadily will continue torange expands and volatility increases. The trader
rise, and vice-versa with falling. Thus the tip whichenters the market at key points and take quick
the trend follower follows here is that he/she buysprofits from small moves for doing so he applies
the stock which has been rising, or short sells a fallingtechnical analysis concepts such as over
one, expecting that the trend will continue.under-bought, support and resistance zones as well
Range Trading: in this trading strategy the tips whichas trendline, trading channel etc.
intraday or day trader follows is that he buys thePrice action strategy: In this traders follows the stock
stock which hits the support level and sells the onetips which rely on a combination of price movement,
which just hits the resistance level. The trader doeschart patterns, volume, and other raw market data.
so thinking that every time the stock hits a high, itThis kind of traders are also called "Technical
falls back to the low, and vice-versa. Such a stock isTraders" who follows technical analysis and makes
said to be "trading in a range", which is the oppositedecision whether to go for trade or not. Although
of trending.technical analysis requires an understanding of how
Contrarian investing: is a market timing strategy. Inmarkets work and the core principles within a market.
this the trader assumes that the stock which hasThus these were some of the intraday stock tips
been rising steadily will reverse and start to fall, andand strategies followed by most of the intraday
vice-versa with falling. Thus, the contrarian trader sellstraders.
the stock which has been rising and buys the falling