Intraday trading is super popular nowadays, especially with beginners in the stock market who want to make quick money. It’s all about buying and selling stocks on the same day to make profits from price changes. But wait! While profits sound exciting, intraday trading is risky too. So, before you jump in, let’s break it down in a simple way.
What is Intraday Trading?
Intraday trading means buying and selling stocks within the same day. Traders look for small price changes during the day and try to make profits. Unlike long-term investors who keep stocks for years, intraday traders close all their trades before the market shuts.
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Key Concept: Buy and sell on the same day.
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Goal: Make money from small price changes.
Basic Terms You Should Know
Before starting, here are some common words you will hear in intraday trading:
How Intraday Trading Works?
Let’s say you buy shares of Company A at ₹1000 per share in the morning. By afternoon, the price goes up to ₹1050, and you sell them. Boom! You just made ₹50 per share in profit.
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Buy Price: ₹1000
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Sell Price: ₹1050
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Profit: ₹50 per share
The idea is to find such chances during the day and make small profits multiple times.
Open Demat Account and Start Trading !
Intraday Trading Strategies
Here are some common ways traders make money:
Risks in Intraday Trading
Not everything is fun and games. There are risks too!
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Stock Prices Move Fast – You may lose money if prices drop suddenly.
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Leverage is Risky – Borrowing money to trade can give big profits, but also huge losses.
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Stress & Quick Decisions – The stock market moves fast, and emotional decisions can lead to bad trades.
Pro Tip: Always use stop-loss to avoid big losses.
Tips for Beginners
Here’s how you can start safe and smart:
Start Small – Trade with small amounts until you gain experience.
Use Stop-Loss – Set a limit so you don’t lose too much money.
Pick Liquid Stocks – Trade stocks that have high volume so you can buy and sell easily.
Follow Market News – Stay updated on events that affect stock prices.
Don’t Chase Losses – If you lose money, don’t rush into another trade to recover it.
Best Trading Tools & Platforms
To trade smart, you need good tools. Here’s what helps:
Intraday Trading vs. Long-Term Investing
Here’s how intraday trading is different from long-term investing:
FAQs – Common Questions from Beginners
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What is intraday trading?
Buying and selling stocks within the same day to make a profit from price changes.
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How much money do I need to start?
You can start with a small amount, but only trade what you can afford to lose.
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What are the best strategies for intraday trading?
Scalping, momentum trading, range trading, and breakout trading.
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How can I reduce risks?
Use stop-loss, start with small trades, and don’t trade on emotions.
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Can I trade from my phone?
Yes! Many brokers have mobile apps where you can trade easily.
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Is intraday trading good for beginners?
It’s risky but can be learned. Start small, practice, and learn before investing big.
Happy Trading!
Related Blogs: Things to remember when you Trade Intraday | How is Intraday Profit Credited | Intraday Trading Chart Patterns | Intraday Trading with Candlestick Trading | Basics of Intraday Trading | Intraday vs Positional Trading