Intraday trading has gained immense popularity among Indian traders looking to earn quick profits from the stock market. But let's face it — succeeding in this fast-paced world isn’t just about luck; it requires skill, strategy, and discipline.
If you're searching for intraday trading tips that can help you trade smarter and improve your chances of success, you're in the right place. In this blog, we’ll break down expert strategies, essential rules, and actionable advice tailored for both beginners and experienced traders.
Intraday trading, also known as day trading, involves buying and selling stocks within the same trading session. Unlike long-term investing, where traders hold stocks for days, weeks, or months, intraday traders aim to profit from short-term price movements.
The key rule in Day trading is to close all open positions before the market closes. This eliminates the risk of overnight price gaps caused by global events, news, or company updates.
Here are some important points to understand about intraday trading:
Success in intraday trading depends on following proven strategies and maintaining discipline. Here are some essential tips that can help you trade more effectively:
For beginners, developing the right mindset and learning effective strategies are key to succeeding in day trading. Below are detailed explanations of crucial Intraday trading tips that can help new traders make informed decisions and reduce unnecessary risks.
Liquid stocks are those that have high trading volumes, meaning they are frequently bought and sold in the market. Such stocks allow you to enter and exit trades quickly without impacting the stock's price significantly.
For example, stocks of well-known companies in sectors like banking, IT, or FMCG often experience strong trading activity. Beginners should avoid low-volume stocks as they can have wide bid-ask spreads, making it difficult to sell the stock at the desired price.
Volatility means how much the stock price moves in a day. Some movement is necessary for profits but extremely volatile stocks are risky especially for beginners.
Focus on stocks that have stable yet noticeable price movement. These stocks provide enough trading opportunities without the extreme risk of sudden and unpredictable swings. Check the stock’s average true range (ATR) or recent price history to identify moderately volatile stocks that are suitable for intraday trading.
Setting clear profit and loss limits is an essential intraday trading tip to avoid emotional decisions. Before entering a trade decide:
For example if you want to make ₹2000 from a trade you should also set a stop loss to limit your loss to a reasonable amount like ₹1000. Using a risk to reward ratio of at least 1:2 (risking ₹1 to make ₹2) helps you to be balanced and not overexpose yourself to losses.
A stop loss is a powerful risk management tool that automatically closes your trade when the stock hits a pre-defined price. This prevents your losses from going beyond a certain limit.
For example, if you buy a stock at ₹500 and set a stop loss at ₹490, your trade will get closed if the price falls to ₹490 — protecting you from more losses. Beginners should make stop loss a non negotiable part of their trading strategy to manage risk.
It is considered one of the essential intraday trading tips. Overtrading occurs when traders place multiple trades daily without proper planning or analysis. This leads to higher transaction costs, mental fatigue and impulsive decisions.
Instead of following every small price movement, focus on quality trades with clear signals and analysis. Stick to a limited number of well-researched trades to reduce errors and improve decision-making.
Too many stocks can be overwhelming especially for a beginner. Focus on 2-3 reliable stocks that fit your trading strategy.
Tracking selective stocks allows you to see their patterns, understand their behaviour and identify trading opportunities better. For example, focusing on NIFTY 50 stocks or other heavily traded large-cap stocks will give you trading opportunities without much risk.
News events, economic data, and corporate announcements can heavily impact stock prices. Staying informed about these developments helps you anticipate market movements and adjust your trades accordingly.
Key updates to watch include:
Reliable sources like Moneycontrol, Lakshmishree News, and NSE/BSE websites can provide timely updates to help you make informed trading decisions.
Timing is everything in Single day trading. Market is very volatile in the first hour of the day and in the last hour before close.
For beginners, avoiding trading in the first 15-30 minutes when the market is unpredictable is safer. Instead, observe the price trends and then decide on your entry point. Similarly, exit your trade once you achieve your profit target to book profits and avoid losses.
Emotional trading is the biggest trap for beginners. Fear of loss can make you panic sell, while greed can make you hold on to trades for longer than necessary.
Discipline is key to long term success in intraday trading. Having strict rules for when to enter and exit trades helps you stay objective even during market volatility.
Keeping a trading journal helps you analyze your past trades, identify trading patterns, and improve your strategy. Record details such as:
Reviewing this data regularly allows you to identify mistakes, refine your approach, and develop more effective trading strategies.
Staying prepared with the right approach can make a significant difference in your intraday trading performance. Here are expert tips to improve your trading decisions today:
Following essential rules is critical to managing risks and increasing success in intraday trading. Here are five golden rules that every trader should follow:
Having a defined trading plan is crucial in day trading. A good plan outlines:
Trading without a plan often leads to impulsive decisions and unnecessary losses. Sticking to a structured plan helps you maintain focus and discipline.
Stock market can be unpredictable and even the best trades can turn against you. A stop loss protects your capital by closing your trade when the price hits a certain level.
Example: If you buy a stock at ₹500, placing a stop loss at ₹490 limits your loss to ₹10 per share. You never lose more than you can afford to.
Experienced traders follow the 2% rule, meaning they never risk more than 2% of their total trading capital on a single trade.
For instance, if your total capital is ₹1,00,000, your maximum risk per trade should be ₹2,000. This strategy protects your account from major losses even during a series of bad trades.
Since intraday trading requires closing trades on the same day, leaving positions open after market hours can expose you to overnight risks. Global news, company updates, or unexpected events can cause price gaps when the market reopens.
To avoid such risks, ensure all your trades are squared off before the closing bell, even if the stock hasn't yet hit your target.
Emotional trading — driven by fear, greed, or panic — is one of the biggest reasons traders lose money.
Selecting the right stocks is crucial for successful intraday trading. Picking random stocks without proper analysis can lead to losses, while strategically choosing stocks improves your chances of making profitable trades. Here are key factors to consider when selecting stocks for Day trading:
1. Prioritise Highly Liquid Stocks
Liquidity ensures there are enough buyers and sellers for smooth trade execution.
2. Look for Stocks with Moderate Volatility
3. Focus on Stocks with Strong Correlation to Index Movement
4. Identify Stocks Influenced by Market News
5. Prefer Stocks with Defined Support and Resistance Levels
Even experienced traders can fall into common traps that lead to unnecessary losses. Avoiding these mistakes is key to improving your success in intraday trading:
Using the right tools can significantly improve your success in day trading by helping you analyse market trends, manage risks, and make informed decisions. Below are some essential tools that everyone should use along with the mentioned intraday trading tips:
Mastering intraday trading requires a combination of strategy, discipline, and risk management. By following the right intraday trading tips, using effective strategies, and choosing suitable stocks, traders can improve their chances of success. Beginners should start with small trades, focus on liquid stocks, and always use stop-loss orders to manage risk. Consistency, patience, and learning from past mistakes are key to achieving long-term profitability in Day trading.
Beginners should focus on liquid stocks with moderate volatility for better trade execution. Setting realistic profit and loss targets and strict stop-loss orders is essential to manage risks. Avoid emotional decisions, overtrading, and unreliable tips to improve your chances of success in intraday trading.
The 3-5-7 rule suggests risking no more than 3% of your capital per trade, aiming for a 5% profit target, and exiting if losses exceed 7%. This method helps traders manage risks effectively and maintain better control over their trading capital.
Popular intraday trading strategies include momentum trading, breakout trading, and the VWAP strategy. These strategies focus on identifying strong trends, breakout points, or volume-based price movements to improve trading accuracy and maximise profits.
No method guarantees 100% accurate intraday tips, but combining technical analysis with tools like RSI, MACD, and VWAP can improve trade precision. Following market trends, setting stop-loss orders, and trading with discipline can increase your chances of success.
To choose the best stocks for intraday trading, focus on liquid stocks with strong trading volumes. Stocks from active sectors or those influenced by recent news events often provide better opportunities. Using stock screeners and technical indicators can also help identify ideal trading candidates.
Disclaimer: This article is for educational purposes only and should not be considered financial advice. Always conduct your research and consider consulting with a financial advisor before making any investment decisions.
