Intraday Trading Guide for Beginners

For anyone starting their journey in the stock market, intraday trading is one of the most attractive prospects. In recent years, it has emerged as a full-time job for multiple investors.

What is Intraday Trading

When you buy and sell stocks on the same day, it is known as intraday trading. In intraday trading, buying and selling correspond to taking positions

How is Intraday Trading different from Regular Trading

In regular trading, you buy shares and hold them for some days, months or even years before selling them to book profits.

Basic Rules for Intraday Trading

1. Trades should be settled on the same day.

2. Trade with capital that you can afford to lose

3. Set a target and stick to it with discipline

4. Stay updated on the news and research in detail about the stock you are trading in

Understanding Entry, Exit and Stop Price Settings

Entry: It is the price at which the trader decides to enter the trade.

Exit Price: It is the price at which the trade is finally settled.

Stop Price: This indicates your loss threshold. Based on the maximum losses you can bear

How to Start with Intraday Trading?

1. Open a Demat & Trading account with them

2. Use the charts, tools, and other technical assistance to analyse and pick stocks

3. Select the order type as “Intraday”

4. Set SL to protect against volatility

5. Settle the trade before the end of the day

Strategies for Intraday Trading

Momentum Strategy: Intraday traders stay on top of news and updates related to stocks and grab every trading opportunity.

Breakout Strategy: Intraday traders identify the price points from which the stocks tend to rise or fall at great speeds.

Open-High Low (OHL) Strategy: If the opening price of the share is higher than the previous day’s closing price, then the trader goes for a short position.

Who Should Participate in Intraday Trading

There are no such defined criteria to participate in intraday trading. However, one must have a basic understanding of how the markets move. It is also important to have a basic knowledge of how to read charts before you trade in intraday.

What Kind of Stocks to Choose for Intraday Trading

1. Choose stocks with controlled volatility

2. Tade in stocks of the same sector

3. Always ride the trend

4. Choose stocks with high liquidity and volume

Why Should You Participate in Intraday Trading

1. A small and regular stream of income can be generated through intraday trading

2. Traders can avoid overnight risks of dramatic price movements

3. High leverage allows traders to invest more than their available capital and increase their chances of realising more gains

Trade in Intraday with Low Brokerage and get Stock Recommendations

Bajaj Financial Securities Limited offers demat and trading accounts through which you can conveniently trade Intraday and enjoy low brokerages as well.

Explore the ease of trading with Bajaj Securities

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