What is Intraday Trading in share market?

Intraday Trading is buying and selling of shares on the same day. This type of trading is also called as ‘Day Trading’.

In India, any share that you buy after the market opens at 9AM and sell before the market closes at 3:30PM is called an ‘Intraday Trade’.

The intention behind ‘Intraday Trading’ is to earn profits from fluctuations in stock prices. Traders try to buy low and sell high or sell high and buy low.

Example of Intraday Trading

  • 1:00 PM: During lunch break, you check the price of Bajaj Finance. The price is ₹ 4165.
  • 1:05 PM: You notice that the price is falling and has come down to ₹ 4161. You buy 100 shares.
  • 1:30 PM: You keep tracking the price and see the price has risen to ₹ 4170. You sell.
  • Total profit: ₹ 900.
What is Intraday Trading in share market? 1
Bajaj Finance: ₹ 4170 at 13:30PM on 24 December 2019. That’s when we sold our shares, after buying it a few minutes ago at ₹ 4161.

That’s how an ‘Intraday Trade’ works.

You entered the market during lunch break, made quick money and got out. Sounds easy? Unfortunately, it isn’t. That’s because price movements are almost impossible to predict.

The market always has more traders than investors. A lot of people want to become intraday traders, but only 1-2% make serious money from day-trading. These are the people who have plenty of experience in the market and good understanding of technical analysis.

Most others, try their luck. If they make money in one trade, they try once more. If they lose money, they may try again. But if they lose a few times, they quit.

Tip #1: Do not enter the stock market thinking you can make easy money. It’s not the right place to try your luck, you are likely to have a better chance at a casino. But if you are willing to invest time and effort into learning, the market will begin rewarding you one day.

Tip #2: Intraday is one of the tougher forms of trading. Consistently making profit requires trading discipline, mental toughness and even a bit of luck. Less experienced traders are more successful in trades that are taken for longer periods of time (1 week or more).

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