Learn the most profitable intraday trading strategies used by professional traders to earn consistent returns in the stock market. Perfect for beginners and experienced traders alike.
Intraday trading — buying and selling stocks on the same day — is one of the most popular forms of trading in India. The attraction is simple: quick profits and daily opportunities. But it also comes with high risks, making the right strategy crucial.
In this blog, we’ll explore proven intraday trading strategies that can help you trade smarter, reduce risks, and aim for consistent profits.
1. Momentum Trading Strategy
Best For: Capturing quick moves during high volatility.
How it Works:
- Identify stocks that show significant price movement with high volumes (often due to news, earnings reports, or sector activity).
- Enter trades in the direction of the momentum and ride the wave for a short period.
Example: If a stock breaks its 52-week high with high volume, traders often buy expecting further upward movement.
Pro Tip: Use Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) to confirm momentum.
2. Breakout Trading Strategy
Best For: Trading during market opening hours or after consolidation phases.
How it Works:
- Monitor key support and resistance levels.
- When the price breaks above resistance or below support with volume confirmation, it often signals a strong move.
Example: If Nifty breaks above a key resistance level after consolidation, it may trigger buying momentum.
Pro Tip: Always wait for a candle close above resistance before entering to avoid false breakouts.
3. Scalping Strategy
Best For: Fast-paced traders looking for multiple small profits.
How it Works:
- Focus on small price changes in liquid stocks.
- Enter and exit trades within minutes, sometimes seconds.
- Profits are small per trade, but frequent trades can add up.
Example: Buying at ₹250.10 and selling at ₹250.25 multiple times during the day.
Pro Tip: Stick to highly liquid stocks or indices like Nifty50, Bank Nifty for better execution.
4. Moving Average Crossover Strategy
Best For: Trend-following intraday traders.
How it Works:
- Use two moving averages — one short-term (e.g., 9 EMA) and one long-term (e.g., 21 EMA).
- Buy when the short-term MA crosses above the long-term MA; sell when it crosses below.
Example: If 9 EMA crosses above 21 EMA in Reliance Industries stock on a 5-minute chart, it may signal an uptrend.
Pro Tip: Combine with volume analysis for stronger signals.
5. VWAP Trading Strategy
Best For: Institutional-level accuracy in entries and exits.
How it Works:
- VWAP (Volume Weighted Average Price) shows the average price based on volume and price.
- Buy when the stock trades above VWAP in an uptrend; sell when it’s below VWAP in a downtrend.
Example: If Infosys stays consistently above VWAP after market open, it may indicate bullish strength.
Pro Tip: Works best in trending markets; avoid during choppy sideways movements.
Risk Management Rules for Intraday Trading
Even the best strategies fail without proper risk control:
- Never risk more than 2% of your capital in a single trade.
- Always set a stop-loss before entering a trade.
- Avoid overtrading; quality over quantity.
- Keep a trading journal to review performance.
Final Thoughts
Intraday trading is not about making big money in one day — it’s about small, consistent profits over time. By mastering strategies like momentum trading, breakout trades, scalping, moving average crossovers, and VWAP setups, you can build a disciplined approach to trading.
A good strategy + strict risk management = long-term success in intraday trading.
