In intraday trading we can buy and sell stocks on the same day before the market close. Intraday trading is also known as day trading.Our goal in internal trading is to book profit before the market closes.Traders focus on capturing price movements within the trading day.
For Example –
I bought a share of ABC company at a price of Rs.100 and before the market closed its price increased to Rs.110, so I sold it and booked a profit of Rs.10 per share on it. If I had not sold the shares before the market closed, my share will close automatically.
Timing of intraday trading
In India, the market opens at 9:15 a.m. and closes at 3:30 p.m., Monday to Friday. If there is a public holiday on any given day, it will be closed.
- Morning session 9:15 am to 10:15 am
- Mid season 10:15 am to 2:30 pm
- Closeing season 2:30 pm to 3:30 pm
how to start intraday trading
Follow the given steps to start intraday trading.
1.Need A Demat Account
To start intraday trading you need a Demat Account.Their are many brokerage platforms in market who provide demat account opening facility.
Such as
- Angle one
- Upstox
- Groww
And many more.
You can open a demat account with any of these brokerage platforms,Fill up the required information.
But according to my opinion,I prefer angle one brokerage because it provides a good leverage in trading and entry and exit is performed smoothly.
Your account will got activated in 48 to 72 hours.
2.Add Fund
After successfully opening the demat account, it is necessary to add funds to it to start intraday trading.
Go to account section, click on add fund add funds as per your need.
3.Learn Technical analysis
To do intraday trading we will have to seek technical analysis, without technical analysis we cannot do intraday trading.
Technical analysis includes
- Support and resistance
- Stoploss
- Chart pattern
- Candlestick
- Market Trend 📈📉
Support and Resistance
Support occurs when a decline is likely to stop due to a concentration of demand. Resistance arises when a rise is predicted to stop due to a concentration of supply. Using trendlines and moving averages, chartists can identify support and resistance zones.
Stoploss
The trigger price is an important aspect of stop-loss orders. A stop-loss order enables traders to limit their losses by placing an order when a predetermined trigger price is achieved. When the security price hits the trigger price, the stop-loss order is automatically executed, with no need for human action.
There are two types of stop loss orders:
(a)Stoploss Market Order
It involve only the trigger price. In this situation, once the trigger price is met, the stop-loss order is converted into a market order and executed as soon as possible at the best price.
(b)Stoploss Limit order
Stop-loss limit order involves both the trigger and limit prices. When the security price exceeds the trigger price, the stop-loss order is changed into a limit order, which is executed at the limit price or a price higher than the limit price. However, even if a stop-loss order is activated, it is not guaranteed to be executed if the price rises too quickly.
Chart Pattern
Chart patterns visually indicate price fluctuations, allowing you to better understand and judge market trends. To make better trading selections, you need to first understand the most prevalent chart patterns.
A chart pattern is an unique structure on a stock chart that generates a trading signal or predicts future price movements. It’s similar to a roadmap that helps you understand where a stock might be going based on its previous movements.
Candlestick
Candlestick charts represent how prices change over a trading day or session. Each candle displays four significant prices: the opening, closing, and highest and lowest prices of the day. The color of the candle indicates whether the price has climbed or dropped.
Market Trend
Trend is your friend,trade with trend do not try to trade against trend.
There are two trends
- Up Trend
- Down Trend
4.Select Liquid Shares
For internal trading we will have to buy and sell shares with high liquidity.
Liquid stocks are those with high trading volumes and volatile price changes in both directions. Because of the strong investor engagement, these stocks are extremely liquid, allowing you to purchase and sell in large quantities without affecting prices. Large-cap stocks that are also included in an index, such as the NIFTY 50 or the BANK NIFTY, are typically the most liquid. In contrast, many mid-cap or small-cap companies are not liquid, and if you choose such stocks, you may be stranded for days before gaining the necessary momentum.
5.Discipline
In intraday trading discipline is very necessary.
Before taking any trade, we should decide the entry and exit point. We should not trade without a stop loss. We should exit the trade after hitting the stop loss.
Without discipline we can never become profitable traders.youhave to pay full attention in market hours.
6.Don’t Be Greedy
Most of the intraday traders got ruined because of greediness.
We should exit the trade as soon as the stoploss is hit. If you become too greedy you will never be able to become a successful trader.
points to be remember
- Do not take loan for trading you have with that amount in which you can take risk.
- Always use support and resistance.
- Always use stoploss .
- Start with minimum amount and grow it with time.
- set a strong mindset before trading.
Who can do intraday trading
- You have to spend time during Market hours.
- You have to be quick decision maker.
- Avoid emotional attachment.
- Enjoy reading charts.
Strategies for trading
- Momentum Trading
- Breakout Trading
- Scalping
- Reversal
conclusion
Intraday trading is a zero sum game. You have to learn technical analysis. Practice the charts so much that the charts start talking to you.
Don’t try to become rich overnight, keep practicing.
If you follow strategy intraday trading is a good source of income .you can be full time trader . In intraday trading broker provides levaredge.
It is very helpful thanx a lot