This is one of the simplest and most successful day trading techniques. This technique will help you fetch profits within a short period of time. You can earn 2 to 4% of profits on every trade by using this technique. The success rate of this technique is more than that of other techniques. To be successful in this technique you have to get day trading recommendations with exact targets and stop loss for actively traded stocks. You can get this from stock market technical experts. While applying this technique you have to find out whether you buy a stock or ignore it at the time of opening the market. This can be decided with the help of analyzing today's opening price, previous day's close price, previous day's intra-day high price and today's target price.
You can find out whether the stock is going to touch today's target price by looking in to todays open price. If todays open price is above previous day's close price but below previous intra-day high and today's target, it indicates the stock is going to achieve todays target price. Then you can buy that stock and hold till it reaches the target. When it reaches the target price you can exit from that stock and there by booking profit. The stock if opens above previous days close price it is an upward momentum, because there is an imbalance between the demand and supply of that particular stock.
If the price of the recommended stock opens above previous days close price and then declines you should keep the scrip till it reaches support level, then enter into that stock to book profit later.
If your recommended stock opens above previous day's high price or today's target price, profit booking takes place. This will increase the supply of the stock, demand declines, hence the price will fall further. In this situation you should ignore the stock.
There are more techniques that can be used successfully in intra-day trading. Read my next blog.