Day Trading 101: A Beginner’s Guide to Intraday Trading in India

Introduction

Have you ever watched stock prices fluctuate throughout the day and wondered if you could profit from those movements? Welcome to day trading, where traders buy and sell stocks within the same trading session to capitalize on short-term price changes.

Many people believe that day trading is risky and only for experts. While it does require skill, discipline, and strategy, beginners can also succeed by following the right approach.

If you're new to intraday trading in India, this guide will help you understand how it works, how to get started, and the key strategies that can help you trade like a pro.

What is Day Trading?

Day trading, also known as intraday trading, is the buying and selling of stocks within the same trading day. The goal is to take advantage of small price movements and make quick profits.

Unlike long-term investing, where you hold stocks for months or years, day traders do not carry positions overnight. All trades are closed before the market closes.

Example:

• A trader buys 100 shares of TCS at ₹3,500 in the morning and sells them at ₹3,550 in the afternoon. The profit is ₹5,000 (before brokerage and taxes).

How to Start Day Trading in India?

1. Open a Trading and Demat Account

To begin day trading, you need:
✅ Trading Account – To buy and sell stocks.
✅ Demat Account – Stores your stocks electronically (not needed for pure intraday trades).

You can open accounts with brokers like Zerodha, Upstox, Angel One, ICICI Direct, or HDFC Securities.

2. Choose the Right Trading Platform

A fast and user-friendly trading platform is crucial for intraday trading. Look for platforms with:
✔️ Real-time charts
✔️ Fast order execution
✔️ Technical indicators

Popular platforms: Zerodha Kite, Upstox Pro, Angel One App, and TradingView.

3. Learn Market Basics and Trading Strategies

Before placing trades, understand:
📈 Stock Market Basics – NSE, BSE, market hours (9:15 AM – 3:30 PM IST).
📊 Technical Indicators – RSI, Moving Averages, VWAP, Fibonacci Retracement.
📉 Chart Patterns – Candlestick patterns, Head & Shoulders, Double Top/Bottom.

4. Choose Highly Liquid Stocks

Trade stocks that have high trading volume and low bid-ask spreads. Examples include:

• Reliance Industries (RIL)

• HDFC Bank

• Infosys (INFY)

• Tata Steel

5. Set Stop-Loss and Target Price

Never trade without a stop-loss (maximum loss you can bear).
Example: If you buy a stock at ₹200, set:
📍 Stop-Loss at ₹195 (limit risk).
📍 Target at ₹210 (expected profit).

6. Follow Risk Management

A golden rule: Never risk more than 1-2% of your capital on a single trade.

7. Avoid Emotional Trading

📌 Stick to a trading plan.
📌 Don’t panic-sell due to market volatility.
📌 Avoid revenge trading after a loss.

Best Intraday Trading Strategies for Beginners

1. Breakout Trading Strategy

🔹 Buy when stock price breaks above a resistance level with high volume.
🔹 Sell when stock price breaks below a support level.

✅ Best for volatile stocks like Tata Motors, Bajaj Finance.

2. Moving Average Crossover Strategy

🔹 When the 50-day Moving Average crosses above the 200-day Moving Average → Buy Signal.
🔹 When the 50-day MA crosses below the 200-day MA → Sell Signal.

✅ Best for trending stocks like Infosys, Reliance.

3. VWAP (Volume Weighted Average Price) Strategy

🔹 If stock trades above VWAP, look for buying opportunities.
🔹 If stock trades below VWAP, look for selling opportunities.

✅ Ideal for short-term scalping.

4. RSI (Relative Strength Index) Strategy

🔹 RSI below 30 → Stock is oversold (buy opportunity).
🔹 RSI above 70 → Stock is overbought (sell opportunity).

✅ Great for momentum trading.

Risk Management in Day Trading

Day trading involves high risk, so it's essential to manage losses.

📌 Follow the 1% Rule: Never risk more than 1% of your trading capital per trade.
📌 Use a Stop-Loss: Always set a stop-loss to protect capital.
📌 Avoid Overtrading: More trades ≠ More profits. Only take quality setups.
📌 Keep an Eye on News: Market-moving news can impact your trades.

Common Mistakes to Avoid in Day Trading

❌ Trading Without a Strategy – Random trades lead to losses.
❌ Ignoring Stop-Loss – Can wipe out your capital.
❌ Overleveraging – High leverage = High risk.
❌ Emotional Trading – Don’t chase losses or get greedy.
❌ Lack of Discipline – Successful traders follow a strict plan.

FAQs on Intraday Trading

1. Is intraday trading profitable?
Yes, but it requires skill, practice, and discipline. Beginners should start small and gain experience before increasing trade size.

2. How much capital do I need to start day trading?
You can start with ₹10,000 – ₹25,000, but having a capital of ₹50,000+ gives more flexibility.

3. What are the best times for intraday trading?
The most volatile and profitable periods are:

• 9:15 AM – 10:30 AM (Opening session)

• 1:30 PM – 3:00 PM (Pre-closing session)

4. Is intraday trading taxable in India?
Yes, intraday profits are considered speculative income and taxed as per your income slab.

5. Can I use margin trading for intraday?
Yes, brokers offer margin trading, but it increases both profits and risks.

Conclusion

Day trading in India can be a highly rewarding but risky venture. With proper strategy, discipline, and risk management, you can make consistent profits over time.

🚀 Want to master day trading strategies? Join our exclusive Intraday Trading Course at TradExperts.in and learn from experienced traders!

📢 Start your day trading journey today—profit from market movements like a pro!