Intraday Trading System is a process of trading I follow in my trading practice is discussed in this article Learning how markets work is skilled through time and experience. Every trader is responsible to develop the skills and discipline which is necessary for successful trading and this only can be done in one way: practice, practice, and more practice.
As we know that charts are the footprint of money and we trade to earn money. Earning is more fruitful if we do it after learning. Intraday Trading is also a profession, like any other profession such as doctor, lawyer, or engineer they first learn the basics get the degree, and then do the expertise in-depth in any specific category such as heart specialist, child specialist, ENT.
Mindsets of Pro Trader
W e will not find a holy grail in intraday trading or an easy trading method. Even if you are not a full-time trader, trading should be treated as your second business and a profession. In any profession, it requires a high level of commitment in the ability to accept successes as well as failures. We know failures are our best teachers.
Our mind should have the ability to learn from this teacher. Analyzing or studying the failures of the past helps to develop a mindset of a better trader. Each and every successful profession has to go through this process there is no shortcut or no overnight success in trading.
With any trading method, all trades are only a probability and never a certainty.
Intraday Trading System
Intraday Trading Typically involves the following steps:
- Research and analysis: Before making any trades, traders need to research the market and analyze the stock they are interested in trading. This involves gathering information about the stock’s price history, market trends, and any relevant news or events that may impact its value.
- Developing a trading plan: Based on their research and analysis, traders will develop a trading plan that outlines their strategy for buying and selling. This plan will typically include entry and exit points, stop-loss levels, and profit targets.
- Placing trades: Once a trading plan has been developed, traders will execute their trades by placing orders through a broker or trading platform. This involves specifying the asset they want to trade, the quantity they want to buy or sell, and the price at which they want to enter or exit the market.
- Monitoring trades: After trades have been executed, traders need to monitor them to ensure they are progressing according to plan. This involves tracking the asset’s price movements, adjusting stop-loss levels if necessary, and making decisions about when to exit the trade.
- Evaluating performance: Finally, traders need to evaluate their performance by reviewing their trading results and analyzing their profits and losses. This will help them identify areas where they can improve their trading strategy and make more profitable trades in the future. Thus, each action you take repeatedly will become a habit. This habit that form will lead you to either your success or your failure.
Trading System “PROFIT”
Keeping the above all points in mind I follow a system that covers all actions step by step and leads my trading journey as a business. The system I follow is “PROFIT”. Every letter represents a particular step in my trade. That is-
- P = Pick Stocks: This is the step of developing my watchlist for both intraday trading and positional. in this step, I build a watchlist by choosing a stock that has the potential to move in a direction and offers an opportunity to trade. I can do some specific criteria of selection (selection method) by fundamentally doing some data, and report analysis which I get from the NSE website. This step is off-market/post-market analysis done before the next day’s trading session.
- R= Recognize Trending Stock: In this step, I do the analysis to find the trending stocks from my selected stocks which have the probability to move 2 to 3 percent in a direction by following some criteria.
- O= cOnfirm trend: This step guides me to identify the exact trend and confirms the direction of the trend in the live market which I planned (Off-Market). This is also done by different criteria for a bullish or bearish trend.
- F= Find SL/Entry/Exit: This step guides me in the live market to find the exact Stop loss of any trade by support and resistance method in the live market and also tells the entry /exit(Target) level. By finding the stop loss I can know the risk in this trade and do the calculation of the Risk and Reward(R:R) ratio I enter into a trade if R:R is suitable for me.
- I= Initiate Trade: After doing R:R calculation in a live market I do the position sizing for any trade according to the risk defines by the stop loss. by the position sizing, I get to know the number of stock have to buy or sell.
- T= Take profit/Loss: In this step in the live market, I exit from the trade by getting either my desirable target or hitting stop loss from any trade.
Above every step, there are different criteria to follow for taking a decision. First, two steps P & R the process in the post or Off-market analysis, and the Last four steps O,F, I& T are the process in a live market of intraday trading.
If you are an experienced trader and you have already formed habits that are not producing the desired results, then take time to evaluate your trading and begin to form new habits that will get you the results you desire in trading.
Thank you so much for spending time on this article. Hope this article will help you to build a mindset like a professional trader.
For Regular chart Analysis – Telegram