By MOFSL
2025-03-31T11:05:00.000Z
4 mins read
Intraday Trading Guide for Beginners in 2025
motilal-oswal:tags/stock-market,motilal-oswal:tags/share-market,motilal-oswal:tags/equity-market,motilal-oswal:tags/share-market-india,motilal-oswal:tags/share-market-today
2025-03-31T11:05:00.000Z

Intraday Trading Guide

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.

Basic Terms You Should Know

Before starting, here are some common words you will hear in intraday trading:

Term
Meaning
Market Order
Buying or selling a stock at the current price.
Limit Order
Buying or selling a stock at a fixed price or better.
Stop-Loss
A safety feature to sell automatically if price drops too much.
Target Price
The price where you plan to sell for profit.
Margin
Borrowed money from a broker to trade more.
Leverage
Using borrowed money to trade big and make bigger profits (or losses).

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.

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:

Strategy
What It Means
Scalping
Making quick trades to earn small profits many times.
Momentum Trading
Buying stocks when they are going up fast and selling before they slow down.
Range Trading
Buying when the stock is low and selling when it is high (within a range).
Breakout Trading
Buying when stock moves above a key level, expecting it to go even higher.

Risks in Intraday Trading

Not everything is fun and games. There are risks too!

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:

Tool
Why It’s Important
Live Market Data
See stock prices in real-time.
Stop-Loss & Risk Tools
Helps protect you from big losses.
Charts & Indicators
Helps analyze stock trends.
Fast Trading Apps
Mobile-friendly apps for quick trading.

Intraday Trading vs. Long-Term Investing

Here’s how intraday trading is different from long-term investing:

Factor
Intraday Trading
Long-Term Investing
Time
Same-day buying & selling
Holding stocks for years
Profit
Quick, small profits
Slow but big profits over time
Risk
High risk due to market moves
Lower risk as stocks grow over time
Best For
Active traders who love quick action
People looking for steady long-term gains

FAQs – Common Questions from Beginners

  1.  What is intraday trading?

    Buying and selling stocks within the same day to make a profit from price changes.

  2. How much money do I need to start?

    You can start with a small amount, but only trade what you can afford to lose.

  3. What are the best strategies for intraday trading?

    Scalping, momentum trading, range trading, and breakout trading.

  4. How can I reduce risks?

    Use stop-loss, start with small trades, and don’t trade on emotions.

  5. Can I trade from my phone?

    Yes! Many brokers have mobile apps where you can trade easily.

  6.  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

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