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Intraday trading, also referred to as day trading, is one of the more common ways to take advantage of short-term price fluctuations in the stock market. Day traders differ from long-term stock market investors in that they buy and sell financial instruments within a single trading day. This fast-paced and active trading requires different skills and different intraday trading strategies than long-term investing. If you're a new day trader trying to find your footing in this exciting yet challenging world, you may even be interested in more ambitious goals, such as learning how to earn Rs. 5,000 daily in the share market.
What is Intraday Trading?
Intraday trading refers to the buying and selling of stocks, futures, or any financial instrument in one trading session. The main aspect of intraday trading is that an intraday trader 'squares off' all their positions before the market closes. This means that you have no overnight positions, and this type of trading is free of "overnight risk".
As a general practice, intraday traders primarily use technical analysis, a method of examining price charts, price patterns, and other indicators to forecast future price moves. The goal is to take advantage of and attempt to profit from the daily volatility of the market in small, consistent profits. Beginners should focus on the fundamentals of the equity market and technical analysis before entering the arena. Before diving into specific strategies, it's crucial to have a clear plan; you can learn how to build one with our comprehensive trading roadmap.
Top 5 Intraday Trading Strategies for Beginners
While no single "golden strategy" can guarantee above-market returns, these five intraday trading strategies are generally recognized as a reasonable starting point for traders new to stocks.
1. Momentum Trading
This strategy is based on the concept of momentum, or the idea that we first identify stocks that have strong movement in a given direction, with significant volume behind them. Momentum traders would "ride the wave" until the momentum in that direction appeared to be running out.
How it works for beginners:
Use a stock screener to identify stocks moving rapidly with high volume (when at the very start of the trading day)
Enter the trade in that direction of the violent move, as a "breakout" to the upside, or "breakdown" to the downside.
If it trades back to your entry price, exit the trade. Consider using a hard stop.
2. Moving Average Crossover
This is a simple, visual strategy based on the momentum of moving averages, and signals to buy/sell stocks subject to moving averages. Moving averages take price data and smooth it out so you have one flowing line to identify the direction of the price trend.
How it works for beginners:
Simply put, you add 2 moving averages to the chart, as a shorter-term moving average and a longer term.
When the shorter moving average crosses above the longer one, this gives us a buy signal.
When the shorter moving average crosses below the longer one, this gives us a sell signal.
3. Breakout Trading
When a stock's price with conviction closes above a resistance level, or closes below a support level with significant volume, typically, this indicates the beginning of a new trend. A breakout occurs when a security makes a decisive movement above a support level or below a resistance level.
How it works for beginners:
Finding key support and resistance levels. Support is a price level at which a downtrend could pause due to an abundance of demand. Resistance is a price level at which an uptrend could pause due to an abundance of supply.
Wait for the price to "break out" of this range with significant volume.
Enter the trade in the direction of the breakout.
4. Scalping
Scalping is a frequent trading style that involves executing several smaller trades over the day to capture small changes in price. This requires speed, focus, and drills for discipline.
How it works for beginners:
It is a more advanced strategy, and potentially not advisable for the absolute beginner, but it can be pursued.
And for absolute beginners and people interested in trying this strategy, use a paper trading account to get accustomed to making decisions quickly without risking real money. (For further reading on this topic, see: Top 10 Paper Trading Apps In India 2025).
The scalper will take advantage of indicators like the RSI (relative strength index) and Bollinger Bands to find quick entry and exit points.
5. Pivot Point Trading
Pivot points are a type of technical analysis indicator used to predict potential support and resistance levels for the current trading session. Many traders use pivot points as a way of ascertaining turning points in the market.
How it works for beginners:
A pivot point is calculated by taking the previous day's high, low, and closing prices into account.
The calculation will also provide you with support (S1, S2, S3) and resistance (R1, R2, R3) levels.
For beginners, the support and resistance levels provided can be used as a guide for entry and exit points by buying as close as possible to the support and selling as close to the resistance point.
Conclusion
Intraday trading can be financially rewarding, but it is also the most dangerous. Success is based on education, discipline, and following projects based on well-researched intraday trading strategies, and sound traders are well aware of the risks. As a beginner, you should start off with a virtual trading account, choose a simple strategy, and focus on risk management with laser focus. Never risk more capital than you afford to lose, and always place stop-loss orders to protect your capital.
With an understanding of these basic strategies and with a disciplined approach, you can lay a firm foundation for an intraday trading career. To go beyond the basics, consider enrolling in an advanced course like "Advanced and Unique Intraday Trading Technique" to refine your skills and discover new methods.
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