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 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 make a profit on the same day. We said that to do long-term trading, we have to wait for a few weeks, months, or years. However, in intraday trading, it happens on the 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 of 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

Intraday trading is not suitable for everyone. If you want to do it, then you have to follow all these things

You need a good setup, like a computer, a laptop, and a Mobile where you can trade.
You should monitor the market during 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 charts so that you can make 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 use a stop loss to limit your losses.
Start small and learn.
It is recommended to use paper trading or a demo account before trading with real money.
If you have made a good trade, then follow consistency by taking any one rule or discipline.

Best Intraday Trading Tips

In intraday trading, you will always have to trade in the stocks which have high liquidity and at the right time you will have to make entry exit strategy by using it and both your target and stop loss will be fixed according to the Risk Reward, if you consider some points then you can do excellent intraday trading and can become a successful trader in future.

Strategy	Key Technique	Suitable For	Risk Management
Momentum Trading	RSI, price breakouts	Volatile markets	Fast stop-loss
Range Trading	Bollinger Bands, pivots	Stable periods	Buy low, sell high
Scalping	High volume, fast execution	Active traders	Small trade size
Trend Following	Moving averages, trend lines	Trending markets	Ride momentum
Breakout Trading	Support/resistance breakouts	News events	Tight stop-loss

Q&A Explanation

Can I invest 100 Rs in intraday?

If the answer is yes, then it will be yes because we can start intraday trading in ₹100; this is not called trading, this is the auspicious amount of trading.

Can I earn 5000 days in intraday trading?

Earning Rs 5000 per day from the stock market is not a big deal. A big thing for beginners is that if you follow the right strategy and discipline, you can earn Rs 5000 per day from the stock market. This is possible.

Is intraday good for beginners?

In my experience, beginners should start intraday trading only when they have a solid strategy. Otherwise, you will have to Learn everything from technical aspects to order execution. Otherwise, you should know the entire market; only then can you start intraday trading gradually.

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 the stock market, Secrets of Successful Trading, and Things to Avoid in the Stock Market. With discipline and patience, you can slowly build your trading skills. So this was my What Is Intraday Trading? Simple Explanation for Beginners article,