Intraday Trading Strategies Formulae - Day Trading For Beginners

Trading the financial markets has become extremely rewarding, for those investors that have mastered the intricacies of intra-day and other short-term trading techniques. Day-traders focus on rapid or short-term day-to-day methods to potentially profit from market movements. The markets traded are usually highly liquid index futures, currencies or stocks. Traders use either intra-day strategies designed to generate buy and sell signals within the same trading session, or short-term strategies designed to be open for a period of up to three days.

If you wish to day-trade then you must develop a strategy, for trading volatile markets that has historically demonstrated the required intra-day or short-term price ranges needed for success. The results from your testing should provide a reasonable expectation of profitability from your chosen market. The best financial markets to trade, in my opinion, are index futures or index forward contracts, which are tradable financial instruments that mimic the movements of stock market indexes.


I have developed a NTTRML strategy, for trading the NIFTY forward contract that is currently producing 46% annual compound return. The strategy is designed to exploit short-term market inefficiencies resulting from regular over-reactions to the Indian equities market. Mechanical trading is an automated method that uses pre-determined entry and exit techniques. Traders that have eliminated human decision making from entry and exit levels are usually more successful than other traders that do not uses these proven methods. It is well documented that professional traders have used mechanical trading, for well over 30 years, ever since the advent of cheap computing technology. 

The reason why mechanical trading works is because it is unemotional and forces the trader to apply the rules of good trading that we all know, but find hard to apply. The rules that you consistently read in investment books such as "run with profits, and quickly cut losses" are absolutely correct. The real skill is to consistently stay true to those rules. The average author of an investment book usually likes to quote that "90% of futures traders will lose their trading capital", but they always neglect to tell their readers that the 10% of individuals consistently making big returns are the people using mechanical trading strategies. It makes logical sense that if you test multiple trading ideas then you will eventually develop complete strategies that consistently work.

My trading strategy can be traded long or short in any market environment. Trading long is the process of buying to open and then selling to close a market position, similar to any normal share market transaction. Short-selling is the process of selling to open a market position in the expectation to buy-back later to close that market position to potentially profit from a fall in the market price. I use a gap entry method combined with a 13 & 34 WMA calculation to determine the initial entry signal. The gap is the difference between today's opening price relative to yesterday's closing price, which must be within a specific pre-determined price range on market open.

The stop-loss and profit-target methods are derived from a Standard Deviation calculation, which is a very common mathematical formula. The calculation is a statistic used as a measure of the dispersion or variation in a distribution, equal to the square root of the arithmetic mean of the squares of the deviations from the arithmetic mean. I have used the Standard Deviation calculation to determine stop-loss and profit-target levels, which I have tied into the lot-sizing calculation that balances the leverage, thus producing consistent compounding returns. These methods of money management are universal to all good short-term or long-term profitable trading applications.

The final component of this particular strategy is that I am only in the trade for a maximum of two trading sessions. This reduces market exposure, while taking adequate advantage of the short-term over-reaction to the Nifty index. I enter at "market-on-open" for my initial trade, and if the stop-loss or profit-target is not hit then I will exit at the end of the following session, usually with a profit. Exiting the following session allows for additional time to benefit from any strong favorable price movement.

I have tested my complete mechanical trading strategy over a three year period using computer code that I personally developed, and I have traded live funds to make sure the complete strategy produces my expected results. I now have a complete fully automated trading strategy that can produce consistent income, for both my retail clients and my own account. If you wish to generate a part-time or full-time trading income, then you should consider intra-day or short-term trading as a new entrepreneurial home-based opportunity.

Key of Success How ?

Personally I trust only in real time data No overnight prediction of the market Only in real time I watch nifty there definitely two things will happen Demand Or Supply increasing according to this I always react. 

Trading nifty simply isn't for everyone. Some people can stand the volatility and the pressure that comes with it, and some people can't. Even among the few who can handle the heat, fewer yet will ultimately be successful doing it. While no exact rules can dictate what makes a lucrative nifty trader, those Wall Street sages who are legends for making killer winnings in a short amount of time all have a few characteristics in common.

1. Successful nifty traders can fight their instincts and act counter-intuitively.

2. Successful traders maintain a regimented system that's as easy and efficient as possible. It rarely makes a difference which system you use - technical analysis versus fundamentals or value versus quality, for example - as long as you adhere to it. A successful trader knows the benefits, as well as the shortcomings, of their system and executes trades based solely upon the system. "The secret to success is consistency of purpose." This means, you must create separate tactics for establishing positions and closing them.

3. Successful traders calculate risk and make decisions that lower their risk exposure. Successful traders abhor losing money and manage their losses before they become too great, even if that entails throwing in the towel and acknowledging they made an incorrect call.

4. However, successful traders are not afraid of mistakes or taking chances. Successful traders have what Native Americans refer to as, "sovereignty," which is the right and capability to do the wrong thing. Essentially, sovereignty is the courage to make your own mistakes, for it's from our greatest failures that we learn the most.

5. Successful traders are not embarrassed or afraid of taking losses. In fact, they expect them and know that an important part of trading is limiting losses and preserving capital.

6. Successful traders master how to analyze nifty.  Many traders only use one form of analysis or seek research from one source, but comparing various reports and charts can give you a better picture.

7. Successful traders lead balanced lives. The rush that a home run trade can produce is addictive, but a successful trader knows when to walk away - and more importantly, has something to walk toward, whether that is family, friends or hobbies.

8. A successful trader cultivates patience. This means letting profitable positions run their course, but it also means that when the market turns against them, they have the patience to try again and approach the market resiliently, courageously and with confidence.

9. A successful trader has a strong drive for success. Trading requires steady efforts, not haphazard positions established cavalierly. Determination to succeed can make all of the difference when the market is tumultuous because many people abandon ship.

10. A successful trader has discipline. That means reviewing markets and researching trades even if he isn't in the mood. Discipline also means holding to your strategy - not buying or selling positions because everyone else is doing it.

5 Bonus Tips

11. A successful trader understands the tactical differences between defensive and offensive behavior, and when each is best used. First, preserve capital, then profit.

12. Successful traders remain as emotionally detached as possible - this means ignoring rumors or Wall Street hearsay. They resist the temptation to join the crowd. Stop loss limits can help traders stay objective by preserving profits and ensuring that profit comes off of the table. While you may miss the rush of the lowest entry points and the highest selling points, stop losses let you sleep at night and live your life without being glued to the computer screen.

13. A successful trader knows himself and is very objective about his strengths and weaknesses. Know how to combat your weakness and implement strategies that capitalize on your strengths.

14. A successful trader knows their portfolio. Never let a trade slip through the cracks - keep detailed records and review your holdings often.

15. A successful trader sticks to the rules - the rules they set for themselves. When markets are moving swiftly, it's easy to lose your head. So, formulate a plan outside of the heat of the moment and stick to it to ensure trading success.

What you should do In every trading session of NSE India

Cool Your Mind

Thoughtless Awareness is one of the most amazing states of mind one can achieve. I bet you are familiar with this phenomenon more than you think.


Simple, in your meditation, this state happens naturally as your energy rises. Your attention automatically relaxes, and you are 100% in the present.

Everybody experiences it a little bit differently, but for me it works like this: I feel the cool breeze over my head which relaxes the scalp and then the brain. It is absolutely real because I cannot force it. Sometimes I feel nothing, no change, even if I really want to feel cool. It is simply a physical representation of what is going on inside my subtle system.

When I feel this cool breeze, it is incredibly enjoyable and at this point there are no thoughts in my mind. I am aware of the surroundings but I am also completely blissed out and completely relaxed. And if I am fortunate enough to keep this state for several minutes I feel like I am charged with tremendous powers and billions of watts of Energy! In fact, it’s like the most healthy, powerful and awesome drug you could ever take.

How To Meditate ?

What you need:
10-15 minutes of uninterrupted time
A quiet spot
The desire to meditate


Start by making sure you are sitting in a comfortable position. You can sit crossed legged on the floor or on a seat with your feet apart, soles on the ground. Placing the hands on your knees, palms facing upwards allows the cool breeze to start flowing in your palms and through your body. (Don’t worry if this doesn’t happen immediately, for some people it takes a while to achieve this state, but with perseverance you will get there.) 

If you feel heat or tingling on the left or right palm, use the left and right side clearing techniques to counteract this. Meditation is achieved more easily when you are not feeling heat on the left or right channel, when you feel cool on both palms, meaning you are in balance.

Another useful technique is to focus your attention from the bottom of your spine and trail it to the top of your head several times finally leavi and the last time I leave my attention on top of my head. This allows you to settle into the quiet space above your head. This space, above your thoughts, your worries and anxieties, is a place where mental silence can be felt.

Sometimes I cannot reach this state but I just keep my attention there and slowly I can feel myself and my thoughts slowing down and I become more peaceful.