A Complete Guide About Intraday Trading

Intraday Trading

If you want to achieve short-term goals in your investments, intraday trading is the ideal option. It involves trading within one day and gaining profits by price fluctuations throughout the day.

It is beneficial for both investors, who are experienced or who are just starting out to invest. However, one should always know the nitty-gritties of the intraday stocks before investing in the intraday trading.

We will discuss all the areas of intraday trading to give a better idea of what the stocks present in this article.


An intraday trading is known as the trade option the trading hours of stocks open and close both at the same day. The stocks are primarily purchased because of transacting new capital gains on purchased securities, along with minimizing risks on secured money.

If you have purchased a significant amount of stocks in the morning, you will see it increase within a matter of 2-3 hours in a day. Thus, it makes it flexible for both small & large businesses to trade in intraday trading for profits.

For installation, if you purchase a 100 rupees stock in the morning, you will see it getting increased to 150 within a matter of one to two hours. Now, you have purchased 20 stocks in the morning. You can now sell each stock at 150 rupees and earn 3000 rupees easily within a matter of one to two hours in the day.

 Features & Benefits

The main features and benefits of intraday trading are listed below:-

1. Automatic Square-off:

When you trade in intraday trading, your main aim is not to own it but to sell at the market at good profits. So, once you buy an intraday stock in the day, try to close it within the trading hours, or otherwise, it will get squared off automatically at the market price.

2. Increased Profits:

In intraday trading, there are a lot of scopes to earn massive profits on investments as capital appreciation in a rising stock is gained easily. If you are planning to extend the period by waiting for one or two weeks, you can also have potential benefits from stocks.

3. Minimal Risks:

Risks can be minimal in the case of intraday trading, as the losses incurred are not as bigger as that of regular trading. However, you need to be careful if you are not trading for the specific lock-in period, rather than the daytime. Therefore, in that case, risks can be associated significantly.

4. Market Oscillation:

Intraday trading can be dependent significantly on market oscillation. If the market condition rises, gains are allocated broadly. On the other hand, if the market condition is slow or in the event of a failure in the market, you can pursue short-selling techniques to gain profits.

5. Nominal Fess Charging:

The commission fees for brokers in intraday trading are low. Unlike, the standard trading option, the expenses for brokers in intraday trading are usually 1/10th of the trading stocks.

Tips and Examples

Here are some tips to follow in intraday trading:-

1. Technical Analysis:-

If you are well versed in technical analysis and dealing with marketing trends, you can opt for intraday trading, as it will bring about many scenarios where you have to predict the status of currency.

2. Limited Trading:-

As intraday trading can be associated with a lot of risks, you should only invest the amount that you can afford to lose. So, it is recommended to go for standard trading if you are planning to gain larger profits in the long term.

3. Indicators:-

Whether you are a beginner or an experienced stock marketer in intraday trading, you should do a thorough study of the market trends and follow indicators that will help you gain insight. There are various types of indicators in the price chart, which you can utilize to predict the trends for investments.

  Risk and Methods

Intraday trading is prone to risks. Therefore, before diving into investments, you have particularly oversee the market performance of the stocks that you are choosing. There are various training methods to help you optimize the risks and do well performance.

  • Momentum trading is a technique where investors can choose relative or maximum-performing trades to reach more capital gains over a long time of holding securities.
  • Swing trading is done for stocks in short selling. So, here vulnerable stocks are invested, and once the stock performance arises, it is sold at a maximum price.
  • Lastly, one can opt for standard trading to gain profit from capital appreciation over a long-term period. Here, some percentage of the profits goes to brokerage fees. It can be a steady option for beginner investors.


Intraday trading can be the best trading option if you are competent to take risks for the trading hours in a day. It comes with potential risks if you take the step without prior study. So, be mindful to invest in intraday trading as it can incur some potential hazards for beginner investors. Along with the time, you will be habituated to day trading as the market fluctuates in a steady manner, which the experienced can reap the benefits.