The stock market offers endless opportunities for traders, but without a solid strategy, even seasoned investors can face losses. For beginners, having a simple and effective trading plan is the key to staying consistent and minimizing risks. In this article, we’ll break down the top 5 trading strategies popular among Indian traders in 2025 — perfect for those starting their market journey.
📈 1️⃣ Intraday Trading Strategy
What it is:
Buying and selling financial instruments (stocks, options, commodities) within the same trading session. No positions are carried overnight.
Why use it:
- Capture small intraday price movements
- Avoid overnight risk from global news or gap-ups/gap-downs
Common Indicators/Tools:
- EMA (Exponential Moving Averages 9, 21, 50)
- VWAP (Volume Weighted Average Price)
- RSI (Relative Strength Index)
- Pivot Points
Example Setup:
- Stock crosses above 9 EMA and VWAP on a 5-minute chart
- RSI above 60
- Entry: At breakout candle’s close
- Stop-loss: Below VWAP
- Target: 1:2 risk-reward or near resistance
Risk Tip:
Never risk more than 1-2% of your capital per trade.
📊 2️⃣ Swing Trading Strategy
What it is:
Holding a position for several days to a few weeks to capitalize on short to medium-term price swings.
Why use it:
- Ideal for people with jobs or part-time traders
- Less screen time, more positional gains
Common Indicators/Tools:
- EMA (21, 50, 200)
- RSI (14)
- MACD (Moving Average Convergence Divergence)
- Support & Resistance zones
- Candlestick Patterns (Bullish Engulfing, Hammer, Doji)
Example Setup:
- Stock retests 50 EMA after a breakout
- RSI between 50-70 (bullish zone)
- Enter long at bullish reversal candle
- Stop-loss: Below recent swing low
- Target: Next major resistance
Risk Tip:
Use trailing stop-loss as trade moves in your favor.
📉 3️⃣ Scalping Strategy
What it is:
Making multiple trades in a day to take advantage of small price changes, typically within minutes.
Why use it:
- Quick, small profits
- Focused trading for highly liquid stocks/options
Common Indicators/Tools:
- VWAP
- Bollinger Bands
- 5/15-minute chart
- ATR (Average True Range) for volatility
Example Setup:
- Stock pulls back to VWAP
- Entry on bullish reversal candle
- Target: 0.3% to 0.5% move
- Stop-loss: 0.2% below entry
Risk Tip:
Strict discipline and instant stop-loss execution is a must. Avoid overtrading.
📊 4️⃣ Positional Trading Strategy
What it is:
Holding trades for several weeks or months, based on broader market trends.
Why use it:
- Requires less frequent monitoring
- Can benefit from major price moves
- Ideal for swing/position traders
Common Indicators/Tools:
- EMA (50, 100, 200)
- RSI (14)
- MACD
- Trendlines
- Breakout chart patterns
Example Setup:
- Stock crosses 200 EMA on daily chart
- MACD crossover
- Entry: On breakout candle’s high
- Stop-loss: Below breakout zone
- Target: 10-20% positional move
Risk Tip:
Stay aware of quarterly results, news, or macro events.
📈 5️⃣ Breakout Trading Strategy
What it is:
Entering trades when price breaks through predefined support or resistance levels, accompanied by high volume.
Why use it:
- Can catch big moves early
- Works well in trending markets
Common Indicators/Tools:
- Support & Resistance lines
- Volume spikes
- Candlestick Patterns (Breakout candle, Marubozu)
- RSI for momentum confirmation
Example Setup:
- Stock consolidates between ₹950-₹1000
- Breaks above ₹1000 with volume 2x average
- Entry: ₹1003-₹1005
- Stop-loss: ₹980
- Target: ₹1035, ₹1060 (based on chart levels)
Risk Tip:
Check for false breakouts — confirm with volume and momentum indicators before entry.
📌 Final Advice:
✔️ Practice on a demo account first
✔️ Use proper position sizing (don’t risk >2% of capital per trade)
✔️ Keep a trade journal to review and improve
