Which is the best time frame for Intraday Trading?
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- Updated On:14-Jun-2022
- Replies:1
Short Answer
Intraday market participants (also known as day traders) use time scales ranging from 5 to 60 minutes. On the chart, the 15-minute and 30-minute time horizons are the most frequently used.
Detailed Answer
What is the best time frame for Intraday Trading?
Trading efficiency varies by the hour or, in the particular instance of intraday trading, by the second. As a result, if you are an energetic intraday trader, you must select the most appropriate daily trading time frame that will make it possible to create the most of your trading endeavors rather than simply waiting around.
According to a considerable amount of research, the best time frame for intraday trading is between 9:30 am and 10:30 am. However, this may not always hold true! So, be very careful with your money.
If you are a newbie, it is always best to notice the market for the first 15 minutes before trading.
Experienced traders choose a time frame of fewer than 30 seconds, if at all. Their time frame selection is unrelated to their trading platform or methodology in the market in which they trade. It is determined by their trading character.
Traders who make numerous trades all through the trading day, for example, may prefer a shorter time frame. Those that only make one or two trades per trading day may choose a longer time frame.
Day Trading's Best Candlestick Time Window
When it comes to the best candlestick time frame for intraday trading, the 5-minute candlestick graph and the 15-minute candlestick chart are the most frequently used time frame charts for price movements.
Because intraday trading is based on price changes, studying rapid price fluctuations for shorter periods can yield excellent results.
In addition, you can make use of the hourly charts. Day traders frequently use it because it documents the price volatility of each hour. In the situation of the hourly candlestick, you get information for the prior one hour using candlesticks.
Best Time for Intraday Trading
The best time period for intraday trading is the opening trade hours and the chart that is most appropriate for you.
However, because day trading is time-sensitive, doing it in the early morning or at the best time of day can undoubtedly help you maximize your gains.
Do you wish to share any other tips and strategies of intraday trading? What do you think? What is the best time frame for intraday trading? Do drop in your comments below.
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Discussion (0)
Making money off the stock market is no easy feat. It would help if you had a calculated investment while reading the stock market and ensuring that you have all the metrics checked out for making a sensible investment.
Trading can be done employing many techniques. Some of them are Intraday trading, swing trading, scalping, and positional trading. Intraday and scalping comprise two forms of trading where the positions are squared off on a particular day. Whereas in positional and swing trading, the positions are held on for weeks or months.
Zerodha is an Indian discount stock broker which provides various services to its customers. Zerodha is a paid platform with Rs 200 as account opening charges and their brokerage rates are different for each segment which are discussed in detail.
Intraday trading is more risky and challenging when compared to long-term investing. Is it not a preferred option for beginners as it requires considerable capital, expertise, adequate knowledge about trading, and multiple other factors. For beginners, the best way is to deploy the majority of your capital towards long-term investments and use the remaining for hedging or short-term trading.
When talking about the best stock broker in India, we cannot rule out Zerodha. It is the market leader in bargain stockbroking, is premised in Bengaluru, and accounts for more than 15% of total retail trading activity in the country. Mr. Nitin Kamath formed the leading brokerage firm in 2010 Kamath, and it now has a customer base of over 6 million.
Realized P&L statement is the total amount of profit or loss you have made with each trade in any segment is reported here. It also includes the brokerage charge that you might have to pay.
An unrealized P&L statement involves the active trades currently running under your portfolio, which showcases how much profit or loss you are currently making in those trades.
Intraday is feasible if you have enough capital and are aware of the stock's performance, while F&O helps in the prediction of the price whether it would rise or fall to book profits.
For significant returns, one can look forward towards stock funds, real estate investments, dividend stocks, target-date funds and so on. Each one of these investments does offer something better to investors based on their capital of investments made.
Intraday trading on Zerodha can be executed with ease by choosing the type of trades you want to engage in. These could be NIFTY, BANK NIFTY, or future options of companies. Once you choose the respective lot, then choose the type of orders and then buy the shares. Trade them when you see a profit or wait till a specific point till you recover your investment.
You might have read about different stock brokers in India. Here I'll review two of the most popular discount brokers in India: 5Paisa v/s Zerodha Comparison.