What is Intraday Trading or Day Trading

What is Intraday Trading

Intraday trading involves buying and selling stocks within the same trading day, aiming to make profits by capitalizing on the movement of stock prices. It is different from long-term investing as the stocks are not purchased for investment purposes.

Intraday trading is conducted using an online trading account. It is important to specify that the orders placed are specifically for intraday trading. The term “intraday trading” is used because all the trades are closed or “squared off” before the end of the trading day.

Intraday Trading Tips

Intraday trading carries higher risks compared to regular stock market investing. It is crucial, especially for beginners, to grasp the fundamentals of this type of trading to minimize potential losses. It is recommended that individuals only invest an amount they can afford to lose without causing financial hardships. Learning a few intraday trading tips can be beneficial for enhancing trading skills. Discover valuable insights and guidance on intraday trading tips to navigate this form of trading more effectively.

Intraday Trading Indicators

To maximize profits in intraday trading, conducting thorough research is essential. This involves following specific indicators that can guide your trading decisions. While intraday tips are often considered highly valuable, it is important to note that they are not a guaranteed solution. Intraday trading indicators serve as helpful tools when used in conjunction with a comprehensive strategy to enhance returns.

Also Read: What is the best strategy in intraday trading?

How to Make Profit in Intraday Trading

Intraday traders constantly encounter inherent risks present in the stock markets. Factors such as price volatility and daily trading volume significantly impact the selection of stocks for daily trading. To ensure proper risk management, traders should avoid risking more than two percent of their total trading capital on a single trade.

Intraday Time Analysis

In intraday trading, daily charts are widely utilized as they display price movements within a single day. These charts are a popular technique for intraday trading and provide a visual representation of price changes from the opening to the closing of the daily trading session. Intraday charts can be employed in various ways, and it is valuable to familiarize oneself with some of the commonly used charting methods. Explore the different types of charts frequently employed in intraday trading.

How to Choose Stocks for Intraday Trading

To be successful as a day trader, it is crucial to understand the process of selecting stocks for intraday trading. Many individuals struggle to generate profits because they struggle to pick suitable stocks for their daily trades. The ability to choose the right stocks that will yield profits is a skill that develops over time and with experience. Mastering the art of selecting profitable stocks comes with practice and learning from previous trades.

Also Read: Stock Market Basics


Who should participate in intraday trading?

An intraday trader typically has a limited timeframe of 5-6 hours each day to conduct both buying and selling activities. Therefore, this type of trading is suitable for individuals who are self-motivated, well-informed about the market, willing to take risks, and capable of setting profit and loss limits for their trades.

What are self-generated intraday trades?

Self-generated intraday trading occurs when the client independently places both buying and selling orders directly using an online trading platform.

Is there any limit for intraday trading?

No, your trading potential is not restricted except by the amount of capital you have and your willingness to take risks. If you choose to utilize margin funding, you can trade up to ten times the value of your account, which can expand your profit opportunities.

What is timing for intraday trading?

In intraday trading, it is important to open and close your positions within the trading hours. In the equity markets, intraday trading begins at 9:15 am and concludes at 3:15 pm.

However, the optimal time for intraday trading is usually one or two hours after the markets open. During this period, many stocks establish a price range within the first 30 minutes of trading. This price range can provide valuable information for making trading decisions.

Can I sell intraday-shares the next day?

If you do not trade intraday shares on the same day, they will be automatically delivered to your account. However, this process depends on the policy of the broking house you are using. Some broking houses have different classifications, such as intraday options and delivery options, as they charge varying brokerage fees for different categories.

Under the intraday category, shares that are chosen for day-trading will be automatically sold at 3:00 pm.

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