What is Intraday Trading?

Intraday trading is the practice of buying and selling stocks or other financial instruments within the same trading day. The goal is to earn profits from short-term price fluctuations without holding any open positions overnight.

What Is Intraday Trading? (Simple Definition)

• Intraday trading means: Buying and selling on the same day with leverage benefit
• No overnight holding
• Profits come from price volatility
• Using Technical Analysis is important for Intraday Trading
• Requires discipline and risk management
• If a trader forgets to close the trade, brokers may automatically square off the position.

How Intraday Trading Works:

• Traders who identifies a suitable stocks using Screeners, volume of the stock and volatility
• Uses charts and indicators to find entry points
• Buys or sells the stock during market hours
• Exits the trade before market closing
• Profit or loss is booked the same day Indian Market Timings:9:15 AM – 3:30 PM (NSE & BSE)

Example:

Buy 100 Reliance shares at ₹2,500 at 10:30 AM

Sell at ₹2,520 at 1:00 PM

Profit = ₹20 × number of shares(100).

Even small price changes can generate profit due to high quantity trades.

Who Should Do Intraday Trading?

Intraday trading is suitable for:

• Active traders
• People who can monitor charts
• Traders with strong discipline
• Those comfortable with high risk

Not recommended for :

• Beginners without knowledge
• Emotional traders
• People expecting guaranteed income

Best Time for Intraday Trading in India

Time Slot	Market Behavior
9:15 – 9:45 AM	High volatility
10:00 – 11:30 AM	Trend formation
12:00 – 1:30 PM	Low movement
2:00 – 3:00 PM	Strong moves
3:00 – 3:20 PM	Position closing Time

Intraday Trading Strategies:

• Scalping
• Breakout Trading
• Momentum Trading
• VWAP Strategy
• Support & Resistance

Common technical indicators for Intraday trading:

• Moving Averages (20 EMA, 50 EMA)
• RSI (Relative Strength Index)
• MACD
• Bollinger Bands
• Volume Indicator
• VWAP

Intraday Trading Rules You Must Follow

• Always use stop-loss
• Trade only liquid stocks
• Avoid overtrading
• Follow one strategy consistently
• Maintain risk–reward ratio (1:2 or better)

Advantages of Intraday Trading:

• Quick profits
• No overnight risk
• Lower capital needed
• Margin benefits
• Daily cash flow potential

Disadvantages & Risks

• High risk of loss
• Requires screen time
• Emotional pressure
• Brokerage & taxes
• Not suitable for everyone

Frequently Asked Questions:

Q1: Is intraday trading gambling?

A: No. Intraday trading is skill-based, but without discipline it becomes risky like gambling.

Q:2 How much money is needed for intraday trading?

A: You can start with ₹5,000–₹10,000, but higher capital offers better flexibility.

Q3: Can beginners do intraday trading?

A: Yes, but only after learning basics, practicing, and following strict risk control.

Q4: Which is the best stock for intraday trading?

A: Stocks with high volume, liquidity, and volatility are best.