Earning money from the stock market through methods like Intraday Trading is a dream for many people. And some individuals are actually doing it quite successfully. Though everyone follows different methods, in the end, most of them are connected to the stock market in some way.
Naturally, this raises a question in the minds of others – “What are they doing differently to earn so much money, and why am I not?” This curiosity leads people to research and explore what the stock market is and how people make money through it.
Often, when someone enters the market for the first time, they are influenced by flashy social media content. Without understanding the risks, they jump into trading and end up losing a lot of money.
Understanding the concept of Intraday Trading is crucial for anyone looking to succeed in the stock market and navigate its complexities.
In this article, we’ll explain what Intraday Trading is, how it works, and how beginners can make money through it – along with why you might consider starting with this approach as a viable option.
📘 Why Consider Intraday Trading?
This type of trading allows for the potential of quick profits and helps traders capitalize on market volatility.
- What is Intraday Trading?
- How Intraday Trading works
- Required tools and setup
- Tips for beginners
- Pros and cons
📌 What is Trading on the Same Day?
In simple terms, trading on the same day means buying and selling stocks within the same trading day.
For example:
You buy Reliance stock at ₹2,500 in the morning and sell it at ₹2,530 by noon. You make a ₹30 profit per share.
But if the price drops to ₹2,470 instead, you’ll face a ₹30 per share loss.
This entire process happens within one day — that’s what makes it “intra-day.”
Unlike delivery trading (where you pay the full amount and can hold the stock as long as you like), this approach allows leverage. Most brokers provide 5X leverage, which means if you have ₹1,000, you can trade stocks worth ₹5,000. But you must close the trade before the market closes that day.
⚙️ How Does Intraday Trading Work?
Let’s understand with a simple example:
- Buy Price: ₹2,500
- Sell Price: ₹2,530
- Profit: ₹30 × 100 shares = ₹3,000 (before brokerage and taxes)
If the stock moves in the opposite direction:
- Buy Price: ₹2,500
- Sell Price: ₹2,470
- Loss: ₹30 × 100 shares = ₹3,000
Intraday trading requires quick decision-making and technical analysis.
✅ Advantages of Day Trading
- Quick Profits: You can make money within hours.
- No Overnight Risk: All positions are closed the same day, avoiding after-market volatility.
- High Liquidity: You can easily buy and sell liquid stocks multiple times a day.
❌ Disadvantages of Day Trading
- High Risk: Markets can reverse suddenly and unexpectedly.
- Mentally Exhausting: Requires constant monitoring and fast reactions.
- Not Ideal for Beginners: It can be overwhelming without proper strategy and learning.
🔧 Tools You Need to Start Day Trading
To begin intraday trading in India, you’ll need the following:
- Demat + Trading Account – with brokers like Zerodha, Dhan, or Upstox
- Trading Platform or App – like Zerodha Kite, Dhan App, or Upstox Pro
- Live Market Data + Charts – from TradingView or your broker’s charting tools
- Reliable Internet Connection
- Basic Knowledge of Technical Analysis – to understand price movements and trends
🔍 How to Choose the Best Stocks for Intraday?
Pick stocks that have:
- High Volume – ensures liquidity (e.g., Reliance, HDFC, TCS)
- Volatility – price should move enough during the day for profitable trades
- News or Events – trending stocks often show strong movement
🔴 Avoid penny stocks – low-priced stocks with low volume can be risky.
Read more About Stock Market
🧠 5 Pro Tips for Beginners
- Always Set a Stop Loss – to limit your loss on bad trades
- Plan Your Trade – with a defined entry, target, and exit strategy
- Start Small – don’t risk large capital as a beginner
- Avoid Emotional Decisions – stick to logic and data
- Keep Learning – about charts, market news, and trading strategies
⚠️ Common Mistakes to Avoid in Intraday
- Holding a losing trade hoping it will recover
- Overtrading without a proper plan
- Following random tips blindly
- Not setting a stop loss
These mistakes can wipe out your capital quickly. Avoid them at all costs.
🏁 Conclusion
Intraday trading is one of the fastest ways to make money in the stock market — but it comes with high risk and requires discipline. With the right tools, knowledge, and planning, it can be a great way to grow your wealth.
If you’re just starting, go slow, practice on a demo account, and stay consistent with learning.
🚀 Coming Next:
“How to Choose the Best Stocks for Intraday Trading?”
Stay tuned!