Updated: Feb 21
Struggling intraday traders will spend TIME to save MONEY.
Successful intraday traders will spend MONEY to save TIME.
Do you know why?
Because one can always get MORE MONEY, but you can never get MORE TIME!
But this world has many beautiful souls, and they offer their products (at least most of the features) for free users.
So, here are 6 freely available tools that help day traders to manage their intraday trades.
1 - Gocharting
Gocharting is the first Indian web-based charting platform built by two traders for the trading community.
They are the first group in the world to build ‘web-based' Market Profile (TPO) charts. Besides, they also provide most of the charts (Japanese Candlestick, Kagi, Renko, and Point & Figure) and all the indicators for all the free users.
Market Profile is a technical concept with a unique charting technique developed by Peter Steidlmayer in 1985. It assists the day traders to read the current market trends as it unfolds.
It helps day traders to locate the footprints of the big players (called OTF – Other Time Frame participants in Market Profile) so that they opt for the trades in the direction of the big players.
Currently, any free users can access the market profile along with the volume profile for all the Indian indices and stocks.
Besides, many essential features are also available for free users. One such helpful for day traders is ‘Multiple Charts in One Window.’
Traders can access up to 4 charts in one window. It is highly beneficial when a trader has to monitor multiple charts for his trading setup.
For paid users, it offers Market Profile (tick) chart, Volume Profile (tick) chart, and also Order Flow charts which are advanced tools for day trading.
Tip 1 - Don't lose more than 10% of your capital on any trading day.
2 - NSE India Option Chain
Many day traders deal with options. There are two types of options trading:
Options buying is straightforward.
If a trader thinks that the security price will rise in a quick time, he can buy Call Options (CE) to make profits. However, time decay (Theta) works against buyers, i.e., the Call Options (CE) premium will fall along with the time even if the price stays at the same level.
Hence, many day traders try different Option Selling strategies. Short Straddle, Short Strangle, Short Butterfly, Iron Condor are some of the popular options strategies.
In this case, option chain data is crucial. It helps traders check the liquidity, price, Implied Volatility (IV), and Open Interest (OI) details of each specific strike price option.
NSE India provides the option chain details in a beautiful format, as shown above. Most day traders use this information to manage their trades.
Tip 2 - Profit in intraday trading is inversely proportional to your ego.
3 - Ninja Trader
It provides an efficient backtesting engine that allows day traders to evaluate their trading strategies. A wide range of educational materials is also available if a trader is unfamiliar with the Ninja platform.
After downloading the NinjaTrader platform, it is crucial to have the data source to access the charts.
A trader can use either static data for his backtesting or can access Free Forex Capital Markets (FXCM) data here.
Tip 3 - Learn how to ride your profits. It is the most challenging task in day trading.
4 - Tradingview
Intraday traders have to access live future charts of indices or stocks to identify their setups and manage their trades.
Tradingview is the leading charting provider at the moment, and it provides clean, elegant charts for the Indian markets, even for free users.
Tradingview also provides a screening facility to shortlist the stocks based on both fundamental and technical criteria.
It also provides two types of backtesting – 1) Manual Method via Bar Reply and 2) Automated Method via Pine Editor.
Besides, it has many features which are helpful for day traders.
Tip 4 - It's better to take a break from intraday trading if you are not feeling good emotionally.
5 - Chartink
Scanning good stocks for next-day trading is an essential process for day traders.
Chartink is known for its screening ability of stocks based on many different criteria. The below image shows the simple example of a 15-min breakout scanner that filters out all the stocks showing breakout in the 15-min candle.
Similarly, Chartink provides many default screeners on their platform. Traders can use any of these screeners as it is, or they modify according to their requirements.
Tip 5 - If you see other traders' profit screenshots, it will trouble your emotional balance. So follow your trade plan.
Most traders give up too soon on intraday trading.
They put 1-2 months of effort into learning the trading game and expect huge returns. When they don’t see any substantial results, they either take more risks or quit trading.
6 - Upstox Pro Option Strategy Builder
Traders love to read and discuss many Options Trading Strategies.
Sometimes, these options strategies appear to be complicated.
Besides, traders face a tough time imagining or calculating some parameters related to option strategies such as breakeven point, maximum profit potential, maximum loss potential, etc.
Upstox came up with a tool called Option Strategy Builder to answer these questions.
It is a simple online tool and helps traders know all these details for any options strategies. Besides, it also shows all the necessary margin details.
The above image shows a good breakout in the Asian Paints Daily chart.
Hence a trader is bullish on this stock and decides to try Credit Put Spread strategy on this.
It will be better if he comes to the margin required, maximum profit potential, and maximum loss potential for the selected strike price.
This tool helps to get that information before placing the trade.
Go to Upstox Pro Option Strategy Builder and enter the option details.
For example, in the above case, a trader decides the sell 2500 PE and buy 2480 PE to initiate the credit put strategy.
It indicates the margin required is Rs. 32,253, the maximum profit potential is Rs. 28710 (when the stock moves above 2584.65), and the maximum loss potential of Rs. 22950 (when the price trades below 2530.85).
After seeing all these details, traders can make a better decision to trigger and manage their options trades.
Intraday Trading is like any other skill which demands focus, dedication for some time.
Pick a trading strategy that suits your personality, study in-depth, backtest it with past data. If the results are promising, start taking a small risk.
In this process, traders make a few mistakes. Note down these mistakes and don’t repeat them. This is the simple way to succeed in trading.
To learn more about intraday trading take the below online course.
You will learn 3 tested intraday trading strategies.
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