Hello friends, Welcome back to our channel.
My name is Aseem Singhal.
I am a full-time trader.
Intraday trading- what is the first thing that comes to your mind listening to this?
For a few people, this is a way of earning daily.
And few people remain far from it.
Is intraday trading really that risky?
Can we earn money from intraday trading?
In today's video, we will know everything about intraday trading.
What is intraday trading? How do you select stocks in it?
How to earn profits? What are the risks of intraday trading?
Before moving ahead, if you want to know more about trading and technical analysis, then subscribe to Trading with Groww.
Here you will get many knowledgable videos.
So let's start today's video.
First, let's see what is intraday trading.
In intraday trading, we square off whatever trade we take by 3:30 pm.
It means that we take an exit from that trade.
This means that if we had a buying position in stock then we would exit it or sell it by 3:30 pm.
Similarly, if we had a selling position in stock then we would exit it or buy it by 3:30 pm.
There are many benefits of this type of trading.
The first benefit is that brokers including Groww give you margin safety in intraday trading.
It means that you can trade more in less amount.
The second benefit is that we don't have to take an overnight risk.
Suppose you purchased Reliance's stock and want to hold till tomorrow.
But some news comes after market hours and Reliance stock falls.
It opens at gap-down the other day i.e, it opens at a price lower than your buy price.
You might incur a big loss before you exit.
This issue doesn't appear when you do intraday trading.
The third benefit is that we can sell a stock before buying it in intraday trading.
Yes.
Suppose you think that a stock is going to fall, then you first sell it. It is called short-sell.
And when it falls more, you can buy it.
Suppose you bought a share at Rs. 100 as you think that the market will fall more.
Now it has raeched Rs. 90.
Now you buy it and squared off your trade.
You earned a profit of Rs. 10 even though the stock price fell.
So these are the benefits of intraday trading.
But as we know, there are 1800 different types of equities in NSE.
How would we know which equity to trade on today?
Now I will tell you 2 special techniques on the laptop.
To earn profit in intraday trading, the most important is stock selection.
This is because there are 1800 listed stocks on NSE.
If we want to earn consistent profits from intraday trading then it is important for the stock to move as per our direction.
For that, we will see 2 techniques.
The first way is to see the top gainers and top losers for the day.
You need to visit this site and check the day's top gainers and top losers.
We can see this after pre-market opening or 9:10 am.
We will check this between 9:10-9:15 am.
Now lets go to this website and see the further steps.
Now lets see how we get top losers and gainers when pre-market closes.
On 7th July, by 9:07, all pre orders were closed.
Now its 9:14.
Please come here and with this drop down, you can choose FNO stocks.
It will show you the list of top 200 stocks.
On clicking the percentage, it will be in descending oorder of top gainers.
Here the top gainers are Titan, Lupin and Hindalco
We will keep these 3 in our watchlist as there are chances of movements here.
For top losers, I have clicked the percentage tab.
The top losers are SRT, Bharti Airtel and Tata Chemicals.
They have the highest negative pre-opening.
We will keep these 3 in our watchlist.
This you can do as I said when pre-market closes approx at 9:07 or 9:08.
So you have 5-7 minutes to find the stocks for the day.
We have got today's top gainers and top losers.
Now we need to see whether Nifty is giving a green opening or a red one.
If its green then a good momentum can be seen in the top gainers.
We can buy it.
If its red then there are chances that the top losers can fall more.
We can do short sell.
As discussed, we can do short sell in intraday trading.
If Nifty is red then these stocks can fall.
We would do short sell and then buy it if it falls more.
This is the first technique to select today's stocks.
Now we will see the next technique- NR7.
This is the next technique to find today's stocks.
NR7 means Narrow Range 7.
This takes range which is yesterday's high minus yesterday's low.
If yesterday's range is the lowest in the last 7 days and if we trade on it today, it can have a strong movement.
Suppose there is a spring and ou keep pressing it, it will get shorten.
If you leave it suddenly, there will be a strong movement.
We put this same logic on stocks as well.
For 7 days, the range kept on decreasing.
And 7th day's range is lowest of all the last 7 days.
If the price goes higher, we will buy it.
If the price goes lower, we will sell it.
Now lets see how we will get this data on NSE site.
I have fgiven this link here, you can go to this link first.
When you go this link, you need to select Half Copy under Select Report.
You can download data of any date you want.
When you open it, you can get all data of all the stocks of that particular date.
I have shown the same data here as well.
On my right, I have added data of last 6 days.
The highs and lows of each stock has been added along with percentage chnage.
Similarly, we have added data of yesterday, 6th of July and derived the percentage change.
In Column A, we will check if the percentage change of yesterday is the lowest in the past 6 days.
If we filter it and put 1, the excel will show which stock had the lowest range yesterday.
We can trade them today.
We can see that we have 91 records.
We cannot trade in 91 stocks.
So we further filter it out under percentage change column.
We will take only 3%
So we have got 10 stocks where there is possibility of good movement today.
This movement can be upward or downward.
If the stock goes above its high, we will buy it.
If the stock goes lower its low, we will sell it.
As per yesterday's high and low, we can do trading today.
Let's take this trade in the live market.
In Allcargo, NR7 is proved and its high is 264.7 and low is 258.2
As per the strategy, we can buy at or aboe 264.7
Now let's see the chart of Allcargo.
As you can see the chart, it has went above 264.7.
Its current price is 266.4
We can easily buy.
I will put 1 stock under intraday trading and we can see that we will get 5x margin.
This means that in just 53 rupees, I can take this trade.
I can easily click buy.
As I bought it, you can see that my trade was successful.
And I have purchased Allcargo at 266 rupees.
As per the strategy, there are chances for it to go up from here.
When it goes up, we can book our profits.
When it goes down, we should keep a stop-loss which is the next thing to be discussed.
In case, a trade goes against us, how should we manage it.
Now let's see how to manage a trade once we have entered.
We bought Allcargo at 266.
Suppose you can do 5 rupees loss of 2% loss.
Then you will put sell stop-loss at 261.
This is the first trade that we can put on our system.
Suppose you nwant to take 1:2 Risk reward i.e, risk of 1 and reward of 2.
In that case, your target will be 10 rupees profit.
Your target will be 266+10= 276.
Now let's put 266 as stop-loss and 276 as target.
I will show you how to put target, you will click on sell.
Then we will select Price Limit instead of Price Market.
We can easily put 276 here.
Then we can place the order.
We have to do on one stock so I have placed the order at 276.
As soon th price touches 276, we will get our profit.
We will also put our stop loss order.
You need to click on this button, select stop loss order.
And click on Continue.
Our trigger price will be 261.
This is our stop-loss price.
Our limit price will also be 261.
We will also place this order.
We have placed both our orders- target and stop loss.
In case the market doesn't move in our direction and goes down, our stop loss will cut.
But atleast we know how much our maximum loss can be.
As you can see, it has went 3-4 points above our level.
NR7 is a good strategy.
We can get good profits based on it.
I hope you liked today's video.
We talked a lot of intraday trading.
First, what is intraday trading.
Its benefits
How to choose stocks for today's trading?
How to enter stocks and put stop-loss to minimize our loss?
Before moving ahead, make sure to like this video.
If you want to know more about trading and technical analysis then subscribe to our channel- Trading With Groww.
Thank you.