Important Styles of Intraday Trading

Intraday trading is defined as selling and buying stock throughout the day and close position by the end of the day. Therefore, the longest time that you hold a share can be from a few seconds, minutes to a day. In this trading, trader makes profits from a small variation in the share price by using margins. There are a number of traders in the stock market, and they are using various types of strategies and techniques. Below, we explain few important intraday trading styles:

Momentum trading: In this trading, investors pick those shares that are moving in a big direction on high volume, and hold these stocks until l they their prices are going higher, and will sell the stock when the stock suddenly reverses its direction. Therefore, the trader can hold a chair for a few minutes to several hours depending on how the share price moves.
Technical trading: Another type of trading in intraday trading or day trading in the stock market. In this trading, Technical analysis is used by traders to know the speculation on movements of share prices in near future. For determining the direction of the stock in the future, traders do chart analysis of historical data on price, the chart of the company as well as volumes of a particular stock. Various technical indicators are also used by traders, which help them in knowing how the stock price will move in a few minutes or hours. The signals given by technical indicators and charts are more valid at certain times of the day than others. It is accepted that the primary 15-30 min of the intraday trading is created up primarily of retail investor or traders.

Scalping Trading: It is also called scalp refers to a short term Intraday trading technique whereby trader's main objective to get short profits from regular stock value fluctuations. This Scalping Trading is very famous intraday trading, and involves selling a stock chooses nearly instantly the trade turns profitable.

Do you know, day trading style is executed within a predefined set of rules and tips like day trading tips, share tips, stock future tips that you just value more highly to use. You must have also your own styles, techniques or strategies that you have learned from you experienced. Remember, you can earn huge amount of money in quick time if you implement proper intraday styles along with the best strategies.

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Keywords: share tips, nifty future tips

By: vinay777

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