Intraday trading involves buying and selling stocks within the same day to profit from small price changes. This beginner’s guide will cover the basics, strategies, and tips to help you start trading confidently and effectively.
Table of Contents
What is Intraday Trading?
Intraday trading means entering and exiting trades within the same day. It is also called day trading.
It aims to profit from small price movements. Unlike long-term investing, day traders do not hold positions overnight. This trading style can be exciting and profitable, but it requires a good understanding of the market and quick decision-making skills.
Key Strategies for Intraday Trading
- Scalping: This involves making dozens or even hundreds of trades in a day to “scalp” small profits from each.
- Momentum Trading: This strategy involves trading stocks that are moving significantly in one direction, typically on high volume.
- Breakout Trading: Traders buy stocks breaking out of a predefined range, expecting the stock to continue moving in the breakout direction.
Tips for Successful Intraday Trading
- Choose the Right Stocks: Look for stocks with high liquidity, volatility, and volume.
- Use Technical Analysis: Rely on charts, patterns, and indicators to make informed trading decisions.
- Set Stop-Loss Orders: Protect yourself from significant losses by setting predetermined exit points for your trades.
- Stay Informed: Keep up with market news and events that can affect stock prices.
What is 5x in intraday trading?
5x in intraday trading refers to leverage, which allows you to trade with five times the amount of money you actually have. For example, if you have ₹10,000 in your account, 5x leverage lets you trade with ₹50,000. This can amplify both your potential profits and losses.
How risky is intraday?
Intraday trading is risky because the market can change very quickly, which means you can make money fast, but you can also lose money just as quickly. To stay safe, it’s important to learn about the market and use strategies like setting stop-loss orders. These orders help limit your losses if a stock’s price moves against you, protecting the money you’ve invested.
ALSO READ – Are F&O and Intraday the Same? – Some Common Questions Answered
How to practice intraday trading?
Paper Trading: You can practice intraday trading on TradingView through a demo account.
Study the Market: Learn about market trends, technical analysis, and trading strategies.
Start Small: Begin with small amounts of money to minimize risk as you learn.
What is the golden rule of intraday trading?
The golden rule of intraday trading is to always have a predefined risk management plan. This includes setting clear profit targets and stop-loss levels before entering any trade. By sticking to these predefined levels, traders can minimize emotional decision-making and ensure they don’t lose more money than they can afford. This disciplined approach helps maintain consistency and reduces the impact of potential losses on overall trading performance.
The Bottom Line
Intraday trading can be an exciting and profitable way to trade stocks, but it comes with significant risks. By using strategies like setting stop-loss orders and sticking to a predefined risk management plan, you can protect your capital and make smarter trading decisions. Starting with a small amount, like ₹2,000, and practicing with paper trading can help you gain experience. Always stay informed about the market, continuously learn, and trade responsibly to increase your chances of success in the fast-paced world of intraday trading.
Can You Earn ₹1,000 daily from Intraday Trading?
Yes, you can earn ₹1,000 daily from intraday trading, but it depends on your skills, strategies, and market conditions. Intraday trading can be profitable, but it also involves high risks. To consistently earn profits, you need to have a good understanding of the market, use effective strategies, and manage your risks properly.
Can You Start Intraday Trading with ₹2,000?
Yes, you can start intraday trading with ₹2,000. However, your profits and risks will be limited due to the small capital. Using leverage can increase your buying power, but it also increases your risk. It’s important to start small, learn the market, and gradually increase your investment as you gain experience.
Can You Buy 10,000 Shares in Intraday?
Yes, you can buy 10,000 shares in intraday trading if your broker allows it and you have sufficient funds or leverage. The ability to buy this many shares depends on the stock’s price, your available capital, and the leverage provided by your broker. Be aware that buying a large number of shares also increases your risk.
Can I Buy 1 Lakh Shares in Intraday?
Yes, you can buy 1 lakh (100,000) shares in intraday trading if you have enough capital or leverage and your broker permits such a large trade.