Beginners guide to intraday trading India


Intraday trading specifies Trading of stocks and ETF during one single day. You can also buy and sell shares within a short period of time without having to undergo the tedious process of availing physical share certificates. In short, the same works on the concept of price movements. 

As a result, you can buy shares when the price goes down and then sell them off when the same rises. As a result of the same, you earn money from this price differential through intraday trading India.

Starting with intraday trading India

Beginners are baffled about selecting the right tools and trading accounts for their entry to intraday trading India. As a trader, you need to use real time charts to identify the price movements. Hence, a brief understanding of the charting process is considered effective. 

Here are a few tips to help you with intraday trading India – 

  • Enter and exit from the trade at ideal time – 

One of the first things that you need to focus on while making intraday trades is to stick to the day trend. This allows you to have low risk entries and gain potential for larger profits. 

These trends also provide entry and stop loss strategies to help you understand when you need to invest and when to leave. You can exit if – 

  • You have achieved desired profits
  • Have reached the condition of maximum loss

In short, you need to set profit and stop loss targets before the actual trade begins. Also, never try to let emotions get better of you. 

  • Conduct historical research to select the best stocks

Another important aspect of intraday trading India is that one should be able to create a relevant stock picking strategy. This helps you to preserve capital and control risks. 

For this, you can start by trading in a single stock and then learn the characteristics, trends and risks associated with the given stock. Further, you need to understand the stock behavior to get an idea about the best performing stocks. 

  • opt for highly liquid stocks – 

While making entry into intraday trading India, you need to identify the stocks that carry high average volume. These stocks are highly liquid in nature and cannot impact your prices. Also, the trade in such stocks should be made after making correlation between indices and sectors. In the initial stages, stick to these stocks instead of highly volatile ones.