Intraday Trading Strategies – Beginners Guide To Intraday Trading

Intraday Trading Strategies – Beginners Guide To Intraday Trading

– [Instructor] Welcome to the
Intraday Trading Strategies for Beginners video series. In this series we will be
learning about intraday trading strategies and short-term
trading in general. In this part, I will be
covering up the foundations of intraday trading
and therefore do watch this video till the end, as concepts discussed
in this video will be required
in videos ahead. In this part we will
discuss about intraday and short-term trading
as market strategies, along with intraday trading
stock selection technique. I will then explain you
why intraday trading remains one of the most
difficult form of trading and how one should approach it. I will also be covering
up capital requirement along with leverage
and its role in failure in intraday trading. I will also brief you
about the tools required along with some tips
about selection of broker. In the end, I will discuss how we will proceed
in this series. So let’s get started. – [Announcer] Click on
Subscribe button and bell icon to get instantly notified
when a new video is uploaded. Thank you for subscribing. – [Instructor] So
let us first begin with some basic concepts and
then we will move forward to some advanced one. So now understanding
what intraday means contributes more to success
in this form of trading than knowing a particular
method in this trading. Now this includes
knowing who you are and what suits you best. For some of you, intraday
will be more suitable, and for some of you,
holding positions over two to four days
would be more suitable. Again, this is something you
have to figure out on your own. Now too many traders
directly want to jump into trading strategies
without understanding the Science behind intraday
trading, and in this video, this is what I explain. So this video, according
to me, is perhaps the most important
video in this series, and therefore, do watch
this till the end. Now two most essential
qualities of an intraday trader is being flexible
and being nimble. Now by flexible I
mean in being open for intraday and
short-term trades as such, and by nimble I mean being open to reverse positions at one go. Opinions as such have no
value in short-term trading, do remember this. Your job is to follow price and to be with it
till the trend lasts. Now intraday trades usually
are held for the day, however flexibility to hold it for two to four days
is required if trade does not work immediately
in your favor. Remember one thing,
that in intraday trading you are up against
time and volatility. Now these are the two element which you should never
fight in trading, therefore you have to
be highly disciplined when you start with
this form of trading. So stock selection or
instrument selection is the most crucial aspect
of intraday trading. Quite often this is
neglected the most. I will try and have one
complete part on stock selection because this remains a
very important topic. So stock selection can
be based on news events, earning seasons,
merger announcements, or any sector-related
reforms as such, however, when it comes
to stock selection, there is an element
of inconsistency in this as one simply
cannot keep hopping from one stock to another. Therefore, we will need
a detailed approach towards this which we
will cover later on. Now while stocks can be
selected for intraday trading and they remain the
most popular instrument, let us not forget that
options can also be looked at from intraday and short-term
trading point of view, especially weekly
options as they tend to move a lot and
are really volatile. Now when it comes
to stocks selection, a lot will depend on visual
confirmation as well. This is something you
will have to practice, and let me assure you, over time you will
get better at this. So look at the two
sub-charts in front of you. Which one of the two you
think would be more suitable for intraday and
short-term trades, and why? Well, in my opinion,
choices is very clear, and that is the first sub-chart. The reason for saying
is very simple. In intraday and
short-term trading, you have to be in
stocks that are moving, and that are not in
a well-defined range. The more a stock moves, the
more you stand to benefit. Again, this is something
I will be covering in great depth going ahead,
but just remember one thing, the key rule here is that
the stock or instrument you are selecting
has to be on the move else you will simply
start picking out stocks which are in a range,
and in the end, you won’t be able to
make any net gains on it. So one of the key
things you have to learn in intraday trading is
to mark out key levels on chart before the day begins. What is prefer is to
mark out previous week’s high and low on the chart, along with previous
day’s high and low. So in the chart in front of you, I have marked out
previous week’s high point and low point to show
you how it is done. This is something you have
to do every single day. So high and low of a week has
to be marked once in a week, but high and low of previous
day changes every day, and hence you have will to
update it every single day. The main reason to do this
is to identify important price action pattern around
these particular levels. One more important marking
which you will have to do is to mark out
pivot points on chart. Let me show you
how this is done. Now pivot points have
been around since ages and they still do
work very well. Now there are many
variations of pivot points and how they are calculated,
but I still prefer to use the standard
pivot points. Now through pivot
point calculation, you do get a pivot level, two support level that is
support one and support two, and two resistance levels
that is resistance one and resistance two. The way these levels
are calculated are given in the chart in front of you. Take note of the same. Let us see how this
calculation is done. So the first key level
is the pivot level. For calculating the
pivot level you need to add high, low, and close
and divide it by three. Then you get a pivot
level which is 27,160. The value for open,
high, low, close for the previous
session is given here. Now once you have
the pivot level, then you simply have to
calculate the support one and support two by the
formula given here. That is 2*( 27,160 ),
minus the high price that is 27,314, and then
you will get 27,006. Similarly, you do get
the support two level and resistance one and
resistance two level. Again, this is a very
standard formula. Just copy it and
take a note of it. I’ll also leave this formula
in the comments section below. So once these calculations
are done on the chart, you have to mark it on
the chart as I’ve shown. So in the chart in front of you, you can see a pivot level
along with support one, S1, and support two, that is S2. Similarly on the resistance
side, we have R1 and R2. So every single day
you have to mark these on your chart before
the session begins. So these concepts will
come in handy when we start discussing about various
intraday trading strategies because we are more interested
towards price action around these key levels. I hope this particular
point is clear. So let us now come
to the concept of support and resistance. Now support and resistance
is well known to all. Whenever a price repeatedly
fails to cross a level, it is termed as resistance,
and whenever it repeatedly fails to break a level or
zone, it is termed as support. So in the chart in front of you, this zone that you see
here, this is resistance. This is where price has faced
repeated selling pressure and it has moved lower
each single time. And this region
that you see here, this is the support where
price has repeatedly faced buying and
hence has moved up. Again, this is very basic stuff. The point that I want to
show through this chart is that of resistance
turning into support, and then support
turning into resistance. So this is the region
where price has faced so much of selling
pressure repeatedly. Now once price moved above this, look how it now
acting as support whenever price is
coming back to the zone. So this is one of the
most important concepts in intraday trading,
do keep this in mind. This is one more
example of this concept. So price here found it
difficult to get past this resistance zone,
and once it did, this resistance zone now
acted as a strong support where price again
started moving higher. So once in a while, I’ll repeat, support turning into resistance
and resistance turning into support will be
explored later when we get to discussing specific
intraday trading strategies. This remains one of the
most important concepts when it comes to
intraday trading and short-term trading as such. Let us now move to candlestick
charts and patterns. For intraday and
short-term trading, always be mindful of
the wide-range supply and wide-range demand candles. These are trend initiation
candles and regions which are of high
importance when it comes to trading over short-term. Now few patterns and
structures I will discuss in individual strategy videos,
but get yourself accustomed to spotting such
wide-range supply and demand candles on the chart. So in the chart in front
of you, you are seeing wide-range supply candles
that are dominating the chart. Such candles are pivotal in
identify structure of price and direction of trend. So this is another
chart highlighting the importance of
wide-range candles. This chart that you see is a wide-range demand
candles on chart. Such candles usually
occur in clusters, and, hence, one must
be watchful and try and spot these
as soon as possible. Again, implications of these
candles with the respect to trend and entry/exit
we will see later in the strategies videos. But start identifying
these candles on the chart from today and start
marking them out. So these candles visually tell
you who remains in control. We will be mainly using
candle volume charts for our analysis and I will
have a separate part for this. So let us now move to
the most important part of intraday trading
and short-term
trading in my opinion. So as I said in the last slide, in my opinion this is the
most important component of short-term and
intraday trading. This is the concept of
participating in a stock when volatility is expanding. So this chart that you
see in front of you is that of a volatility
cycle of a stock. There are two distinct markings
I have done on the chart. On the left side you
see these green arrows and on the right side, you
see these yellow arrows. As an intraday trader, you
only need to participate in segments when
volatility is rising. This is when odds of success
actually tip on your side and you must capitalize
in these phases. Remember one thing, in
intraday and short-term trading you want movement in price. If there is limited movement,
you won’t be able to profit. Hence, you should only
participate when odds of movement are high,
and this usually happens when volatility is
expanding on the upside. I hope this part is clear
as this remains the most underrated concept when it
comes to intraday trading. Stay tuned, we will be
exploring all these concepts in great depth in times to come. Let me now explain
the number one reason why traders fail at
intraday trading, and I will suggest
how to deal with this. The thing is that
intraday trading is so lucrative due to the
available of leverage. Traders with limited
capital think of using leverage to
grow their account. This approach in my
opinion is totally wrong. The propaganda that
goes around offering five times, 10 times, 20 times, or even 50 times
leverage is astonishing. I hope you can see
how the entire system is luring you into
trading over short-term and over intraday in particular. Now too many beginners,
I feel, fall in this trap as they don’t realize
that leverage is a
double-edged sword. Once you get experience,
yes, you should use leverage to grow, however, till
you gain experience, leverage is poison
for you account and it should be
avoided at all costs. Now on a account
size of just rupees, one lakh easily take up
three lakh, five lakh, or even 10 lakh worth
of positions in a day. This is a very common
practice, however, what traders don’t
realize is that could take just one session for you to
lose your entire account, plus you will owe a lot
more to your broker. Therefore, don’t use leverage
till you gain experience. This decision alone will
put you light years ahead than those traders who
don’t embrace this fact. Please be mindful of this. In case you don’t
have experience or you
are new to trading, leverage is poison
for your account. In this section I will
take less than 30 seconds to explain why intraday
trading remains the most difficult
form of trading. So these three markings that
you see in front of you, these are two-day price
action on a chart. The thing with intraday
trading is that you’re fighting against time and you’re
fighting against volatility. Within a short span of time, volatility can completely
move against you and, hence, you will need
to exit your position. This happens so
often that it damages one’s psychological
setup and one completely abandons this form of
short-term trading. So the chart in front of
you, look at how swiftly price moves up and
then it moves down. Such price action is
easy to see in hindsight, but it is very
difficult to deal with when you are seeing this
playing out in real time. The only way you
can beat this is by staying consistent,
and by being disciplined, and by not letting such
typical days affect you. On one such days, in
case your leveraged, you would lose your
entire trading account. Again, I’ll repeat, if
you have the misfortune of being highly
leveraged on your account and you experience just
one session like these one on the charts, you will
completely lose your account. So this is one more
reason why you should stay away from leverage till you
master yourself and your setup. So, again, in this
section I will take less than 30 seconds to
explain why your broker plays a huge role
in intraday trading. So traders often
choose brokers based on how much leverage they offer. This is not the right
approach, I feel. You should always
choose your broker based on the stability of his systems. It is not unusual to see
brokers’ terminals freezing on volatile days and
event-heavy days. I’m sure this must have
Happened to you as well. The negative aspect of
this is that it could take just one such session
where you cannot log into your account to
have a significant damage on your account. So one thing that
I would suggest is that choose brokers
based on stable systems. Do not chase brokers based
on the leverage they offer. In the end you’ll simply
make them more rich. So for intraday strategies
that we are going to discuss here, web-based
platforms would be fine, however, make sure that
the data has to be realtime on those platform. I, personally, always
prefer desktop software as they let you save your
own studies on the charts, and you can add your
own custom indicators, and you run realtime
scans as well. But in the end, it’s
totally your choice what you want to select. So this is, again, one segment that most beginners
get it wrong. I will explain this
segment assuming one has one crore total
capital at hand. The way I would
allocate this capital into various segments of
market would be as follows. For investment, I would
allocate 70% of my capital, that would be roughly
70 lakh rupees. For positional trading, this
would actually constitute about 25% of my capital,
that is 25 lakh rupees. And the remaining 5% that
you see, that is five lakhs, that would be kept
for intraday trading. Now most beginners often
allocate too much of capital in intraday trading
and short-term trading. This remains one
of the main reasons why they blow up their
account too fast. Remember one thing, a
lot of people benefit if you trade on
short-term basis, right from your brokers
to those who want to sell their stock
recommendations to you. Don’t let them dictate
to you what needs to be done in your own account. Be practical and don’t let
your emotions take over you. Do not forget one thing, that
wealth is made over long term. It is only that income
is made over short term. Don’t mix the two, have
your allocation right, and be smart about how
you allocate your money. So this one more aspect
that traders need to pay attention to. Every now and then you will
come across strategies, or trading systems, or
traders being advertised as best or ultimate. Now, the thing is, you
have to remember one thing that when you hear such
things, always be careful. There is no such thing
as best or ultimate. In my opinion, trading
is all about hard work. You need to take one
method, research it, take notes, practice it,
and then make it your own. There is no shortcut to
success in this field. Now many beginners
commit a mistake of moving in a loop
where they keep switching their strategies based
on what they hear. Avoid this at all costs. If you follow this
advice, again, you will be light
years ahead of those who will keep
believing in the myth of some best strategy or
some best system out there. So in this section, I will
cover how long it takes to be successful in
intraday trading. There are key four steps
you need to follow. First step is understanding
what you want in this. You need to choose which
instrument you want to trade, who is going to be your broker, understanding what is
your patience level, and setting realistic
goals and expectations. Second step is to finalize
your intraday setup. Whether you will strictly
trade on intraday basis or you will keep positions
for two to four days, this is what you will
discover in this phase. You will also identify
whether you like to trade with the trend or you are
mean reversion trader. So third step is to practice and to adapt the method
you have selected. In this you will religiously
practice the setup and takes notes, and
then fine-tune the method based on your own
psychological profile. Fourth and final step is
the most important step in this process, and
it of being disciplined and focused on improving
with each passing day. So realistically speaking, I think it takes about
18 months of hard work to get a hang of short-term
and intraday trading. It’s a rigorous process
one has to undertake, and only then one can
start making money. So let me now explain
how we will be proceeding in this series. Instead of focusing on
too many strategies, I will introduce you to
two very common intraday and short-term
trading strategies. I will show how to execute this, and I will show
you how to identify high-probability conditions
to identify these setups. I will also be showing you
stock selection strategies and some price action
concepts with respect to candle volume charts. I will then be showing
you how I execute these as I takes trades in my own
account as case studies. DO not forget that intraday
and short-term trading setups require an approach of a hawk. This means it requires
patience, a lot of patience, and then, again, more patience. You need to strike only
when it is required. Most importantly, being
an intraday trader does not mean that you
have to trade every day. So do share this video
and hit on the Like button if you have enjoyed this video. So this is the foundation video of intraday trading
strategies, and going ahead, we will be moving very fast
into some advanced concepts. So thanks a lot for
watching this video, guys. Be safe and take care.


  • Trade With Trend

    February 28, 2019

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    Thanks For Watching Guys. Tc & Be Safe.

  • anand kumar

    May 11, 2019

    Loved it again…no crap. Simple, concise and meaningful.


    May 27, 2019

    Which Broker do you suggest?

  • sunil mangalorkar

    June 3, 2019

    Sir do i have to speak to my broker to cancel my leverage. as sharekhan automatically gives a 10 X Leverage on intraday.

  • Naga Subrahmanyam

    June 22, 2019

    how to know volatility is expanding or not. pls explain guruji or let me know related video. thanks in advance

  • manoj Rawat

    June 28, 2019

    Dear sir your all videos are extremely good I ever seen as for the beginners ..looks real classes given by a experienced mentor.. thanks I am always linked with u and waiting for ur all videos


    June 29, 2019

    Yes,this is the right video for beginners.Hats off to you Sir

  • rajesh singh

    August 6, 2019

    Sir. By seeing now a days Market scenario do you advice traders to Invest for Long term?


    August 25, 2019

    No one has explain trading in such simple language and in depth. Thank a lot from bottom heart. God bless you for all your efforts.

  • Noufal

    September 17, 2019

    u are good mentor.appreciate ur hardwork


    September 23, 2019

    Very useful video that every day trader should watch. Thank you sir. I'm having a doubt in stock selection sir instead of running behind all the stocks why one should not keep 5 good movement stocks and Tade only in those stocks. Is this a right approach please clarify sir.

  • Dharun Thiyagarajan

    November 8, 2019

    I'm huge fan of your YouTube Channel especially the videos on Intraday Trading. I can see significant improvement in profits based on your trading tips & recommendations. Thank you for sharing your knowledge on this subject. Would also like to know about Central Pivot Range (CPR) Indicator?

  • PEER MOHAMED Jainalludeen

    November 8, 2019

    Hello Bro I recently come across your videos, I am seriously learning this series of videos, I am watching each video several times and taking notes. I have lots of doubts to clear from you. Your all videos are excellent and full of information each second is important & informative. How to ask my doubts by email or comment?

  • PEER MOHAMED Jainalludeen

    November 9, 2019

    Hello, Thanks for your reply.

  • PEER MOHAMED Jainalludeen

    November 9, 2019

    In wide range candle identification only candles with full body to be considered or candles with long wick & tails to be considered. Which candle most preferred? In all your examples you have shown only full real body candles.

  • jaya subba reddy bisani

    November 11, 2019

    Hello Mate,
    I got a doubt, please clarify me.

    Does previous days or week support and resistance lines act as support and resistance in today's price action in Pivot point strategy?

    And also, do we need to consider previous pivot points in any of the case in today price action movement?

    Please clarify me. Thanks.

  • hv lakshmi

    November 23, 2019

    Good morning. By previous week, you mean the previous five trading sessions or previous calendar week from monday to friday irrespective of the day on which trade is being taken? And pivot points are computed on previous day's ohlc data or previous period's ohlc? I presume it is previous day because you are teaching intraday methods here. I did not understand why you don't mention the instrument and time frame so that the same can be checked by the viewers like me instead of troubling you with queries. Anyway, I really feel that you are very knowledgeable and perhaps have a formal qualification in the stock markets.

  • kiran kumar

    November 25, 2019

    Pure gold expecting more videos in intraday playlist

  • minhajuddin km

    December 2, 2019

    Great video. Right said no one tells this.


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