Intraday Trading Information

Introduction

• Intraday trading is also called day trading.
• In this, shares must be bought and sold on the same day.
• Profit or loss is determined by the end of the day.

Difference between Intraday and Long Term Trading

• In intraday, shares are cheaper because there is no ownership.
• Long-term investment involves risks, such as overnight risk.

Advantages of Intraday Trading

• Possibility of daily profit.
• Immediate impact of market news is not felt.
• Shares are available five times cheaper.

Disadvantages of Intraday Trading

• More risk due to time constraints.
• Need to do it full time.
• Requires quick decision-making and analysis.

Short Selling

• A way to profit from stock decline.
• Very risky because stock prices can go anywhere.

Essential Conditions and Rules

• Choose liquid and volatile stocks for intraday.
• Follow the market trend.
• Avoid penny stocks.

Support and Resistance

• It is essential to identify market support and resistance points.

Technical Analysis

• Use of trendlines and moving averages in technical analysis.
• Understanding various candlestick patterns.

Candlestick Patterns

• Bullish patterns: Hammer, Inverted Hammer, Bullish Engulfing, Piercing Line.
• Bearish patterns: Bearish Engulfing, Shooting Star, Hanging Man.

Chart Patterns

• Inverted Head and Shoulders: Indication of market rise.
• Double Top and Double Bottom: Indications of market fall and rise.

Use of Indicators

• RSI: Indicates overbought and oversold conditions.
• Moving Averages: Act as support and resistance.

Risk and Reward

• Importance of stop-loss: To limit losses.
• Risk to reward ratio: At least 1:1 and preferably 1:3.

Conclusion

• Discipline and technical knowledge are essential in intraday trading.
• Consistent practice and analysis improve trading skills.

These notes briefly present the key aspects of intraday trading and provide useful information for trading.