Market Profile trading strategies for successful intraday trading

 Are you curious to know about intraday trading as a stock market trader? well, intraday trading involves buying and selling shares on the same day to gain financial gains. Just focus on square off your open position before the end of the day's trading session instead of considering factors like distribution dates, demats, etc. Intraday trading is not easy at all. To get good return you need to focus on several things. As a key rule, you should understand that market profile, intraday trading in stock markets is subject to greater market volatility than regular investment. Also, you need to make a proper assessment of your risk appetite before starting your trading journey.

5 Market Profile trading strategies for successful intraday trading

1. Understand the basic techniques of intraday trading:

Do your research: Before buying shares of a particular company, do extensive research to estimate important standards to know about signs showing the company's strength and weakness.

Risk-management and risk-benefit ratio: As a new investor, you should always invest only the amount you can bear losing. One of the basic intraday trading strategies to invest is to invest in a stock that has a risk profit-ratio of 3:1. This will allow you to lose the amount that will not bother you, as well as provide an opportunity to get good returns. Another technique of risk management is to avoid investing more than 2% of its entire trading capital in the same business.

Select liquid shares: you can select some large-cap shares, instead of investing in many small and mid-cap stocks. 

Set market time: when you buy stocks, market experts recommend avoiding trending for the first hour of the trading session. 

Avoid emotions and pre-determine returns and risks: Setting your entry level and target price in advance for intraday trading is another basic technique. 

2. Use intraday trading time analysis:

The second position in the list of intraday trading strategies is to analyse the daily chart carefully. Daily charts illustrate price movement between opening and closing hours during a day's trading session. You can analyse price fluctuations between short and medium term through daily charts. For intraday trading, you can study a variety of charts such as a 15-minute chart, a five-minute chart, a two-minute chart, and a tick-tack chart.

3. Follow strong intraday trading strategies:

The third in the list of intraday trading strategies is to follow reliable strategies. You can follow the techniques below:

Using opening range breakout (orb) to map resistance and support: 

Opening range stockprices fluctuate at the start of a one-day trading session whether it can be high or low. Orb duration can be from 30 minutes to 3 hours. As resistance, after identifying the highest point and assuming the lowest point to be support, you can take different conditions.

For demand-supply imbalances, see: This intraday trading strategy is used to identify stocks, with considerable imbalances between supply and demand, and are used as entry points. 

Use relative strength index (RSI) with average directional index (ADX): While RSI is a technical indicator ofmore purchased (over-purchased)and more sold (over-sold) stocks, ASI is a trend indicator supporting the decision to buy and selltraders. Combining the two can help you make informed intraday trading decisions.

4. Understand the difference between investment and trading:

The fourth position in the list of intraday trading strategies is to understand the difference between investment in stock markets and intraday trading. Both trading and investment require different strategies. Investing in stocks requires a more fundamental approach, while intraday trading is more technical.

5. Remember that the market is unpredictable:

Even if you are an experienced businessman with state-of-the-art equipment, you cannot predict the fluctuations in prices with absolute certainty. At times, despite tech indicators predicting the market to be bullish, prices may fall. If the market runs against your expectations, remember to get out of your position immediately.

Conclusion:

Since you know how to do intraday exchanging, follow these intraday exchanging techniques or market profile trading strategies, and amplify your profits. You should always remember to rely on a trusted financial partner to open your intraday trading account. 

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