Introduction

“I know where I am getting out before I get in” -Bruce Kovner, Chairman of CAM Capital and one of the most successful traders in the world.

What separates the most successful traders of all time from others? It is neither any special education nor exceptional chart reading skills. Risk management is the most important thing for a successful trader apart from discipline, strategy and skill.

Intraday trading is a topic which has intrigued market participants for many years. But did you know that out of every 100 intraday traders, only 10-15 become successful?

It requires far more dedication and discipline than other forms of trading and therefore the technique and decision making for this trade should be simple and robust. In this module, we introduce a simple yet efficient way in which you will be able to assess which stock to buy or sell, and where to exit and book profits. This module will  focus not only the concept of intraday trading but also how to have a systematic approach to sentiment, trend, and momentum.

“ Money cannot be made in Intraday Trading” – A common perception of most of the common people. Yes it’s a different ball game as we are time bounding our trades apart from the direction but if a systematic approach is followed, we can do wonders by having exposure to limited risks.    

Genuinely speaking, Intraday Trading is a broad term. There are thousands of strategies which one can adopt. There is no such thing as wrong and right about strategies, the important thing is it should suit one's individuality.  In this module, we will discuss a few time tested practices and strategies related to Intraday Trading. There are fixed parameters to distinguish between Intraday trading and other forms of trading, but intraday trading basically means visualizing the market from a shorter-term perspective.

To begin with, let’s first discuss the different types of trading.