I am an Intraday Trader since 2016, will discuss on my trading system that I follow for intraday trading.
I use pure price action concept for picking up stocks and trade setups.
Since it’s a Price Action strategy, I don’t use any technical indicators for intraday trading.
Let me give exact trading methodology/process that I follow :
- I prepare my Stock watchlist a day before in the evening/night. Watchlist consists of trade setups for both upside movement and downside movement in stocks.
- I create price alerts for them which gives instant notifications on mobile for the price movements so that no good opportunities are missed.
- The time zone during which I trade is 10 a.m to 12. p.m . And 1.00 p.m to 3.30 p.m. I don’t initiate any trade between 12 to 1.p.m. This is volatile time zone where random moves happen mostly in anticipation of European market opening.
- Morning 9.15 a.m to 9.45 a.m and the noon 12 p.m to 1.p.m are volatile time zones, so I avoid trading during these time.
- As the price action trade setups that I pick up are momentum setups with high accuracy the profits come within 2 mins to 10 mins of execution of trades.
- I only trade in Futures segment. And my Targets are from Rs.1500 to 4000 per lot depending on the lot sizes and the prevailing market conditions. If the markets (Nifty50 index) are trending one i.e moving in 1 particular direction steadily then Profit targets can be kept slightly high. If markets are flat and consolidating then profits are booked quickly.
- 80% of the time Profits are achieved within 2 – 15 mins. For trades which doesn’t move in my desired direction, I check for 20 mins, if the trade is in loss or at the same level then I square it off with whatever minor loss is there and get into another trade setup.
- I do not over trade. If my Daily Profit target is achieved within 1 hour of trading then I log out of my trading account and keep away from trades for rest of the day. On monthly basis I can tell that on 75% of the trading days my daily profit targets are achieved by 11.30 a.m itself and I close my Mobile Trading App.
- I avoid chasing stocks or prices. I only trade when entry prices are reached as per my trade setups.
- Position sizing and extremely rigid RISK & MONEY management rules are important factor for success in intraday trading.
- Even if a trading strategy is good, the poor risk and money management rules will ruin your trades and blow your trading capital.
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