Intraday Trading Strategies: Tips and Tricks for Beginners

Key Takeaways: 

• Intraday trading involves buying and selling stocks within the same trading session, requiring quick decision-making and disciplined execution.
  
  
• Beginners should focus on liquid, high-volume stocks to ensure smoother entry and exit with minimal price slippage.
  
  
• Each intraday trading strategy works best under specific market conditions, so choosing the right strategy is crucial.
  
  
• Strict risk management, including the use of stop-loss orders, is essential to limit losses in fast-moving markets.
  
  
• Consistency, emotional control, and continuous learning play a key role in improving intraday trading performance over time.

Intraday trading, also known as day trading, involves buying and selling stocks within the same trading session, with all positions closed before the market ends. While understanding different intraday trading strategies is important, beginners often struggle because they lack the practical intraday trading tips and execution tricks required to apply these strategies effectively.

Overview of Intraday Trading? 

Intraday trading means opening and closing trades within the same market session. Traders focus on assets with high liquidity and market volatility, which allow quick entry and exit without significant price slippage.

Key features include:

• Zero overnight risk (positions are closed by end of day)
  
• Heavy reliance on technical analysis
  
• Short decision windows and rapid execution

Below are some of the most commonly used intraday trading strategies, along with actionable tips and tricks to help beginners trade more confidently and responsibly.

Breakout Trading Strategy: 

The breakout trading strategy focuses on identifying stocks that move beyond key support or resistance levels with strong volume. Traders enter the trade when the price breaks above resistance (buy) or below support (sell), expecting momentum to continue.

Tips and Tricks for Breakout Trading 

• Always confirm the breakout with high trading volume to avoid false signals
  
  
• Avoid entering trades on breakouts during low-volume market conditions
  
  
• Place a stop-loss slightly below resistance (for buy trades) to limit losses
  
  
• Best used during high volatility periods, especially after market opening

Gap and Go Trading Strategy: 

In the Gap and Go strategy, traders look for stocks that open at a significant gap up or gap down compared to the previous day’s closing price. The assumption is that the price will continue moving in the same direction.

Tips and Tricks for Gap and Go Trading 

• Focus on stocks with news, earnings, or corporate announcements
  
  
• Trade only gaps supported by strong pre-market or early-session volume
  
  
• Avoid trading extremely large gaps, as they may reverse quickly
  
  
• Use tight stop-losses since gap trades can be highly volatile

Reversal Trading Strategy:

Reversal trading aims to capture price movements when a stock reverses direction after hitting overbought or oversold levels. Traders look for exhaustion signals before entering trades.

Tips and Tricks for Reversal Trading 

• Use indicators like RSI or support-resistance zones to confirm reversals
  
  
• Wait for confirmation such as price rejection or candlestick patterns
  
  
• Avoid trading reversals in strong trending markets
  
  
• Always trade with a strict stop-loss, as reversals can fail quickly

Momentum Trading Strategy:

Momentum trading involves identifying stocks moving strongly in one direction with high volume. Traders aim to ride the trend until momentum weakens.

Tips and Tricks for Momentum Trading 

• Focus on stocks with clear price direction and increasing volume
  
  
• Momentum trades work best during the first 1–2 hours of the market
  
  
• Avoid entering trades late in the move
  
  
• Trail stop-losses to lock in profits as momentum continues

Pullback Trading Strategy:

The pullback strategy allows traders to enter a trade during a temporary price correction within an ongoing trend, instead of chasing prices at highs.

Tips and Tricks for Pullback Trading

• Identify a strong trend first, then wait for a minor retracement
  
• Use moving averages or trendlines as support zones
  
• Avoid deep pullbacks that signal a trend reversal
• Enter only when the price shows signs of resuming the original trend

Moving Average Crossover Strategy: 

This strategy uses two moving averages — a short-term and a long-term average — to identify trend direction. A buy signal occurs when the short-term average crosses above the long-term average.

Tips and Tricks for Moving Average Strategy 

• Works best in trending markets, not sideways conditions
  
  
• Combine moving averages with volume indicators for confirmation
  
  
• Avoid frequent crossovers during low volatility
  
  
• Use this strategy on liquid stocks to reduce false signals

Scalping Strategy: 

Scalping focuses on capturing small price movements by executing multiple trades within a short time frame. It requires speed, discipline, and precision.

Tips and Tricks for Scalping

• Trade only highly liquid stocks with tight bid-ask spreads
  
• Use very small stop-losses to control risk
  
• Avoid overtrading, as transaction costs can eat into profits
  
• Scalping is best suited for traders with quick execution and experience

Suggested Read: Intraday Trading Strategy: Open High Open Low Approach

Conclusion: 

While understanding different intraday trading strategies is important, real success lies in how well these strategies are executed. Beginners should focus on combining the right strategy with practical tips such as risk management, discipline, and proper timing.

Intraday trading requires quick decision-making, emotional control, and continuous learning. By applying the right tips and tricks to each strategy, traders can improve consistency and reduce unnecessary losses. With the right tools, structured learning, and expert guidance, beginners can gradually build confidence in intraday trading. For advanced tools and professional support, traders may explore the educational and trading resources offered by Mastertrust.

FAQ:

Is intraday trading suitable for beginners? 

Yes, intraday trading can be suitable for beginners if they start with basic strategies, trade with small capital, and strictly follow risk management rules such as stop-loss and position sizing.

Which intraday trading strategy is best for beginners? 

For beginners, strategies like moving average crossover, momentum trading, and VWAP-based trading are considered easier to understand and implement compared to advanced strategies like scalping.

How much capital is required for intraday trading?

There is no fixed minimum amount, but beginners should start with an amount they can afford to risk. It is advisable to risk only 1–2% of total trading capital per trade.

What is the best time for intraday trading in India? 

The most active trading periods are usually the first hour after market opening and the last hour before closing, as volatility and trading volumes tend to be higher during these times.

What indicators are commonly used in intraday trading?

Popular intraday indicators include Moving Averages, RSI (Relative Strength Index), VWAP, MACD, and Volume indicators, which help traders identify trends and entry or exit points.