How to Daytrade

Intraday trading can be done in following ways :

1) Take all trades in the direction of the longer timeframe. So if we are trading on 5 min chart, see what is the trend on 30 min chart...if it is down, take all short trades on 5 min chart.....but your trade entry,stops and profit taking all has to be on 5 min chart.. This is relatively easy as we are trading in one direction generally unless the trend on larger timeframe reverses during the day..

2) Trade the intraday swings without any bias....trade as the price flow moves...trade from short and long both sides....this mode is bit difficult as we need to be fast in reversing our positions and we need to understand the market action well....and very rigid on stops....

Let us take the tougher part .....intraday swings. I am posting Telco 5 min chart for 2 days with trades , adds,profit taking points marked on the chart....

Posting a chart showing how to daytrade 5 min timeframe chart in the direction of 30 min timeframe trend. The scrip is Bank Nifty Future .The chart on top is 30 min and the visual trend on 30 min has changed to DOWN at the red line marked. In 5 min chart, we take all short trades, add and take our profits......no long trade as long as 30 min visual trend does not become UP.....Both methods are based on pure price action.....

Out of the two styles shown above which one is more profitable ?? Actually both are very profitable, the choice really depends on the mental set up of the trader....choose any style which you are comfortable with and you can handle with ease .....there should be no strain,tension while trading these charts...the moment there is strain , be sure that something is amiss.....

Smart_trade