What Is Intraday Trading? Simple Explanation for Beginners

If you’re new to the stock market, you’ve probably heard the term Intraday Trading. But what exactly does it mean? Let’s break it down in a simple way.

What do we call Intraday Trading

Buying and selling of stocks on the same day is called intraday trading. In this method, the target of the trade is to take quick profit from the market and get profit on the same day

We said that to do long term trading we have to wait for a few weeks, months or years but in intraday trading it happens in a same day, Intraday traders close all their positions before the market closes—usually by 3:15 PM in India (NSE/BSE).

Let us Understand Intraday Trading with Some Examples

Let’s say you buy 100 shares of XYZ Company at ₹300 in the morning. If the price rises to ₹310 during the day, you sell them and make a profit of ₹10 per share.

Buy Price: ₹300
Sell Price: ₹310
Profit: ₹10 x 100 = ₹1,000 (before taxes and charges)

If the price drops, you will have to bear the loss,

What are the Features for Intraday Trading

Same-Day Trading: All trades are squared off before market close.
Short-Term Profits: Aim to make money from small price changes.
Leverage Available: Brokers often offer margin Up to 4X (borrowed money)
High Risk, High Reward: Quick gains are possible, but losses can also come fast.

How to do Intraday Trading

Basically intraday trading is not for everyone, if you want to do it then you have to follow all these things

You need a good setup like a computer, Lapto And Mobile where you can trade.
You should monitor the market until the trading hours.
To trade, you need to know how to trade on that platform, how to execute orders etc.
You should know how to read technical and charts so that you can take decisions.
You should always follow the risk reward.

This Should Always be in Your Mind Regarding Trading

Lose only the amount you can afford to lose.
Always do a stop loss so that your loss is limited.
start small and learn.
You should use paper trading or demo account before trading with real money.
If you have made a good trade then follow consistency by taking any one rule or discipline.

Conclusion

Intraday trading can be exciting and profitable, but it comes with significant risk. As a beginner, it’s important to understand the basics of stock maeket, Secrets of Successful Trading and Things to Avoid in the Stock Market. ith discipline and patience, you can slowly build your trading skills. So this was my What Is Intraday Trading? Simple Explanation for Beginners article,