Intraday trading, also known as day trading, is the practice of buying and selling stocks within the same trading day. The goal is to take advantage of short-term price movements and earn profits quickly. If you’re planning to begin intraday trading in 2025, this guide will help you understand how to get started step by step.
1. Understand What Intraday Trading Means
In intraday trading, you buy and sell a stock on the same day before the market closes. Traders aim to profit from price fluctuations that occur during trading hours. Unlike long-term investing, intraday trading focuses on timing and market momentum rather than fundamentals.
2. Open a Demat and Trading Account
To start intraday trading, you need both a Demat account (for holding stocks digitally) and a Trading account (for buying and selling shares). Choose a reliable broker that offers low brokerage, fast execution, and real-time data.
Popular trading platforms in India include:
- Zerodha Kite
- Upstox Pro
- Angel One
- Groww
- ICICI Direct
3. Learn Basic Market Concepts
Before placing your first trade, you must understand essential stock market concepts such as:
- Market Orders and Limit Orders
- Support and Resistance Levels
- Volume and Volatility
- Technical Indicators (like RSI, MACD, Moving Averages)
These concepts help you make informed trading decisions and manage risks effectively.
4. Choose the Right Stocks for Intraday Trading
Not all stocks are suitable for day trading. The best intraday stocks usually have:
- High liquidity and trading volume
- Volatility with frequent price movements
- News or event triggers
Focus on 3–5 stocks daily instead of tracking dozens. It helps you understand patterns better.
5. Develop a Trading Strategy
Every successful trader follows a clear strategy. Some popular intraday trading strategies include:
- Momentum Trading: Buying stocks showing strong upward momentum.
- Breakout Trading: Entering when price breaks above resistance or below support.
- Scalping: Making multiple small trades to capture tiny price changes.
- Reversal Trading: Identifying when a trend is about to change direction.
Practice these strategies using a demo account before trading with real money.
6. Risk Management Is the Key
Intraday trading involves high risk. To protect your capital, follow strict risk management rules:
- Never risk more than 2% of your capital in a single trade.
- Always use a stop-loss order to limit losses.
- Book profits using a target price.
- Don’t trade on emotions or rumors.
Consistency and discipline are more important than winning every trade.
7. Use Technical Analysis Tools
Intraday traders rely on technical charts and indicators to find entry and exit points. Learn how to read candlestick charts and apply tools such as:
- Relative Strength Index (RSI)
- Moving Averages (SMA, EMA)
- Bollinger Bands
- Volume Analysis
Most trading apps like Zerodha Kite and Upstox offer built-in charts and indicators for easy analysis.
8. Start Small and Practice Daily
Don’t jump in with a large capital. Begin with a small amount and trade in small quantities. Gradually increase your position size as you gain confidence and experience.
Keep a trading journal to track your trades, mistakes, and improvements.
9. Stay Updated with Market News
Stock prices often move due to breaking news, company announcements, or government policies. Follow reliable financial news sources like:
- Moneycontrol
- Economic Times
- Bloomberg Quint
- CNBC TV18
Keeping up with market trends helps you make better trading decisions.