Intraday Trading Tips and Strategies for Beginners

by Nikesh | Last Updated On September 27, 2022

Free Intraday Trading Tips and Strategies for Beginners for Today and Tomorrow.

What is Intraday Trading?

Intraday Trading or Day Trading is the practice of buying and selling financial instruments such as stock, stock options, currencies, futures contracts such as equity index futures, interest rate futures, and commodity futures within the same trading day.

In any day trading business, a transaction is closed before the market close of the trading day. People or traders participating in day trading business are called active traders or day traders.

Most of the day traders are normally employees of bank or investment firm because they have better knowledge and understanding. Most of them are specialists in equity investment and fund management.

With the advancement of technology and internet, day trading has become increasingly popular among common investors.

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Making Money with Intraday Trading

One can make a lot of money as a day trader, but it’s not as simple as other small business, currency trading or work from home jobs. Day trading jobs can be done from home but generally need more time and involvement than other work from home business.

It involves risks but if one can take calculated risks, he / she can make a lot of money in a short period of time. A beginner or a newbie to this business may even end up losing money.

Intraday Trading Tips and Strategies for Beginners

To be a successful Intraday Trader, one needs to follow some Tips, Strategies and Rules of the game and understand some of the basics.

1. Basics of Intraday Trading

Many people or investors consider day trading an easy means of Investment and making money in a short period of time and get rich quickly easily because they don’t need to wait for long periods of time to see their investments grow.

One should always keep in mind that while it can be fun to invest in day trading, it’s important not to allocate more than 3-5% of total equity corpus for the purposes of day trading. This is a safe amount to stick with because if it is all lost it won’t ruin the investor financially.

Many people get carried away and will take as much as 25% off their equity corpus for Intraday trading and finally they end up losing all their money.

2. Understanding Intraday Trading

Any individual who really wants to make money as a intraday trader needs to learn and understand some of the basics before investing. Learn day trading and stock market terminology like futures, call option, put option, delta, and stop loss trigger. An understanding of these terms can be very helpful.

3. Pick the Right Stocks

Before buying shares in Indian Stock Market, it is important to do some study and research to pick the best stocks to buy.

Do some Fundamental Analysis of a Company before trading.

4. Intraday Trading Tools and Software

Today there is 24 hour access to the stocks via stock market tickers, stock market websites etc. Many people think that with all these technologies available today, they are not going to lose their money. This is wrong. These tools may help in day trading but they don’t guarantee success.

One should always remember that day trading is always a risky business. It is extremely important to keep an eagle’s eye on the stocks. Use all available tools, but don’t mistakenly think that Intraday Trading is safe.

5. Day Trading Rules

There are some important rules associated with day trading. Firstly, always be aware of worldwide economic status and the company or stocks’ business practices. One should always try to choose large cap stocks with high trading volumes. This will help to avoid getting stuck with volatile stocks or an illiquid stock.

An Intraday Trader may also have to book losses. This will improve future profits. As a day trader one can always learn with experience and time. A day trader should set standards and try to achieve set targets.

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FAQs: Intraday Share Trading

What is Intraday Share Trading?

Intraday means "within the day". Intraday Share Trading means buying and selling stocks on the same trading day. It is also known as Day Trading.

Share prices in a stock market keeps fluctuating during a trading day. Day Traders try to speculate prices of which stocks will go up or down sharply within the day and they bet on these stocks to earn profit.

How can I do Intraday Trading?

Following are the steps to do Intraday Share TRading:

Open a Demat Account (Trading Account attached).
Do your research on stocks for Intraday.
Buy or Sell the stocks, generally after 30 Minutes of Market Opening. In India, the Working Hours of Stock Market is 9.15 am to 3.30 pm.
Put Stop Loss.
Sell or Buy the stocks before market close, generally 30 Minutes before the closing time.

Intraday Trading Example

Check: Intraday Trading Example

Is Intraday Good for Trading?

I personally suggest beginners and even some experienced investors to stay away from Intraday Share Trading. You may earn some money for few days, but in the long run you will eventually lose your money. It is like gambling where Players NEVER Win. It is the Bookie who earns all the money at the end of the day. In this case, the Broker is the Bookie.

Conclusion & Disclaimer

Intraday Trading is always a Risky Business. Play Safe.

I hope these Intraday Trading Tips and Strategies for Beginners was helpful. Please SHARE with others. Thanks!

What is Intraday Share Trading?

How can I do Intraday Trading?

Intraday Trading Example

Is Intraday Good for Trading?

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