What is Intraday Trading and How to Start? Complete Beginner Guide

The stock market offers multiple ways to earn money, and one of the most popular methods among traders is intraday trading. Many beginners are attracted to this style of trading because it allows traders to buy and sell stocks within the same day and potentially make quick profits.

However, intraday trading is not as simple as it seems. Without proper knowledge, strategy, and risk management, traders can lose money quickly. In this comprehensive guide, you will learn what intraday trading is, how it works, how beginners can start intraday trading, strategies, risks, and expert tips.

By the end of this guide, you will have a clear understanding of whether intraday trading is suitable for you or not.

What is Intraday Trading?

intraday trading stock chart example for beginners

Example of an intraday trading stock chart showing price movement during the trading day

Intraday trading, also known as day trading, refers to the practice of buying and selling stocks within the same trading day.

In this type of trading:

Stocks are purchased and sold on the same day
Positions are closed before the market closes
Traders take advantage of short-term price movements

For example:

If you buy shares of a company at ₹500 in the morning and sell them at ₹510 in the afternoon, your profit is ₹10 per share.

Unlike long-term investing, intraday trading focuses on short-term opportunities in the market.

Trading Chart Guide

How Intraday Trading Works

bull and bear movement in intraday trading

Bull and bear price movement during intraday trading.

Intraday trading works based on small price movements during the trading session.

Stock prices move constantly due to:

Market demand and supply
News and economic events
Institutional trading
Global market trends

Intraday traders analyze charts and indicators to find the right entry and exit points.

A typical intraday trade follows these steps:

Identify a stock with high volatility
Analyze price charts
Enter the trade
Monitor the trade
Exit before market close

Most traders use platforms like Zerodha, Upstox, or Groww for intraday trading.

Intraday Trading vs Delivery Trading

Understanding the difference between intraday trading and delivery trading is important.

Feature	Intraday Trading	Delivery Trading
Holding Period	Same Day	Long Term
Risk	High	Moderate
Capital Requirement	Lower	Higher
Profit Potential	Fast	Slow but stable

Intraday trading is suitable for traders who can monitor the market actively.

Advantages of Intraday Trading

Intraday trading offers several advantages if done correctly.

1 Quick Profit Opportunities

Because prices move frequently, traders can make profits within a single day.

2 No Overnight Risk

Since positions are closed before market close, traders avoid risks caused by overnight news or events.

3 Lower Capital Requirement

Intraday trading often provides margin, allowing traders to trade larger positions with smaller capital.

4 Multiple Trading Opportunities

Every day the market provides multiple trading opportunities.

Risks of Intraday Trading

While intraday trading offers profit opportunities, it also involves significant risks.

High Volatility

Stock prices can change rapidly, which can lead to sudden losses.

Emotional Trading

Many beginners lose money because of fear and greed.

Overtrading

Taking too many trades can increase losses.

Lack of Strategy

Without a proper strategy, intraday trading becomes similar to gambling.

How Beginners Can Start Intraday Trading

If you want to start intraday trading, follow these steps.

1 Learn Stock Market Basics

Before trading, you should understand:

Stock market fundamentals
Candlestick patterns
Support and resistance
Trading psychology

Before starting intraday trading, you should first learn the fundamentals of the stock market.

“Stock Market Basics for Beginners”

2 Open a Trading Account

To start trading, you need a demat and trading account.

Popular brokers in India include:

Zerodha
Upstox
Angel One
Groww

Choose a broker with low brokerage charges and good charting tools.

3 Choose Liquid Stocks

Beginners should trade in high liquidity stocks.

Examples:

Reliance Industries
HDFC Bank
ICICI Bank
TCS

Liquid stocks have:

high volume
tight spreads
better price movement

4 Use Technical Analysis

technical analysis for intraday trading strategy

Using technical indicators to analyze intraday trading opportunities.

Intraday trading relies heavily on technical analysis.

Traders analyze charts using indicators like:

Moving Average
RSI
MACD
VWAP

“Best Technical Indicators for Intraday Trading”

5 Set Stop Loss

Stop loss is the most important rule in trading.

A stop loss helps limit your loss if the market moves against your trade.

Example:

Buy stock at ₹500
Stop loss ₹495

Maximum loss = ₹5

Best Intraday Trading Strategies

Here are some popular strategies used by traders.

1 Momentum Trading

Momentum traders look for stocks that move strongly in one direction.

Indicators used:

Volume
Breakout levels

2 Breakout Strategy

A breakout occurs when a stock price moves above resistance or below support.

Breakout trading works well in high volatility markets.

3 Scalping Strategy

Scalping involves making small profits from small price movements.

This strategy requires:

quick decision making
high discipline

Best Time for Intraday Trading

Market hours in India:

9:15 AM to 3:30 PM

Best trading times:

9:30 AM – 11:30 AM
High volatility and good opportunities.

2:00 PM – 3:00 PM
Trend continuation trades.

Avoid trading during 12:00 PM – 1:30 PM due to low volatility.

Intraday Trading Tips for Beginners

Follow these tips to improve your trading performance.

Start with Small Capital

Never risk large money in the beginning.

Follow One Strategy

Do not use too many strategies at once.

Avoid Emotional Trading

Stick to your trading plan.

Maintain a Trading Journal

Track your trades to analyze mistakes.

Common Mistakes in Intraday Trading

Many beginners repeat these mistakes.

Trading without stop loss
Overtrading
Following random tips
Ignoring risk management

Avoiding these mistakes can significantly improve trading results.

Is Intraday Trading Profitable?

Yes, intraday trading can be profitable if done with proper knowledge and discipline.

However, statistics show that many beginners lose money because they trade without a strategy.

Successful traders focus on:

risk management
consistency
discipline

Intraday trading should be treated as a skill that requires practice and experience.

Conclusion

Intraday trading is an exciting way to participate in the stock market and generate short-term profits. However, it requires strong discipline, proper strategy, and risk management.

Beginners should start with small capital, learn technical analysis, and practice before trading with large amounts.

If you approach intraday trading with patience and continuous learning, it can become a profitable skill over time.

FAQ

What is intraday trading in simple words?

Intraday trading means buying and selling stocks on the same day before the market closes.

How much money is required for intraday trading?

You can start intraday trading with as little as ₹5000, but beginners should start with small capital to manage risk.

Is intraday trading safe for beginners?

Intraday trading is risky for beginners if they trade without proper knowledge and strategy.

What is the best strategy for intraday trading?

Popular strategies include momentum trading, breakout trading, and scalping.

Can I do intraday trading every day?

Yes, traders can trade every market day, but it is important to trade only when good opportunities are available.

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