Intraday Trading has been the style of trading that most of the modern traders are interested about. Because it is the quickest method to make money in stock market and also you can lose money in the same timespan. But still, it is most appealing to traders. So to enrich our trading community, I am starting a new post series that will become your guide for how to decide entry and exit points in intraday trading starting with this post.
In this post series you will learn three most important skills for intraday trading:
1. How to decide entry points with minimum risk and quick profit gain
2. How to decide exit points with maximum possible profit
3. How to decide exit point with minimum loss when you are wrong.
The method which I am going to discuss here is different from other methods and that’s why it has the following benefit over other methods.
1. You are not concern about the main trend of stock
2. You are not even concerned about the main trend of market
3. You don’t need any specific method of stock selection, you can trade any stock which is active and liquid.
4. You don’t need to predict the market direction but you hear the voice of market and go with it.
The method of trading that we are going to learn is well organized. It can be learned and implemented with the following six steps:
Steps To Decide Entry And Exit Points In Intraday Trading:
1. Deciding Important Intraday Levels of Price on Chart: It is about finding potential support and resistance level in the future from past 5-10 days of the intraday chart.
2. Deciding Potential Entry Points and Exit Points: Price often swings back and forth these level which is near to the current price move so we will decide potential entry and exit points based on optimum risk/reward ratio.
3. Waiting for the Best Entry Setup Which Is Timing The Trade: When the price reaches our decided entry point and that also as per desired price volume signature. That will provide us the opportunity to enter our trade.
4. Sensing The Strength And Weakness In Price And Volume Through Chart Reading: After entering the trade we will watch the price movement and other indication of strength and weakness with respect to general market carefully. This will give us the possible outcome of our trade.
5. Properly Exiting the Trade: With the above signals we will try to reap the best profit or exiting with least loss.
6. Position Sizing: We will watch our trading performance and accordingly we will change our position size in the future trades.
As this is just the introduction of these post series. We will discuss all these steps in detail in upcoming posts. For more explanation watch the following video: