Buy Today, Sell Today!” That’s the heartbeat of Intraday Trading — a style where every second matters, and decisions must be fast and calculated. In our previous article, “What is Trading?”, we explored the different styles of trading, from long-term investing to short-term speculation. One of the most active and exciting forms we briefly touched upon was Intraday Trading — and that’s exactly what we’ll explore in depth here.
What is Intraday Trading?
Intraday Trading involves buying and selling stocks (or other assets) within the same trading day, before the market closes. Traders aim to take advantage of small price movements in highly liquid stocks or indices.
Unlike long-term investing, where you wait for months or years, intraday traders might hold a stock for minutes or hours.
Intraday vs Positional Trading
| Feature | Intraday Trading | Positional Trading |
|---|---|---|
| Holding Period | Within a single trading day | More than one day |
| Risk Level | High (due to market volatility) | Moderate to Low |
| Capital Required | Can use margin (lower capital needed) | Requires full capital or margin |
| Profit Potential | Smaller but frequent | Larger but less frequent |
| Suitable For | Active, fast decision-makers | Patient, long-term thinkers |
Key Skills Needed
- Quick Decision Making – Market can reverse in seconds.
- Technical Analysis – Candlestick patterns, moving averages, and indicators are critical.
- Discipline – Stick to stop-losses and targets. No emotions.
- Market Timing – Entry and exit should be precise.
Common Tools Used
| Tool/Indicator | Purpose |
|---|---|
| Moving Averages | Identify trend direction |
| RSI/Stochastics | Spot overbought or oversold conditions |
| VWAP | Track average price for intraday bias |
| Volume Analysis | Confirm strength of price movement |
| Supertrend Indicator | Identify buy/sell opportunities |
Example of an Intraday Trade
Let’s say it’s 10:00 AM and Reliance stock is trading at ₹2,400.
- Entry: You buy 100 shares at ₹2,400 based on a breakout.
- Target: ₹2,430 (profit ₹30 per share)
- Stop-loss: ₹2,390 (risk ₹10 per share)
🔹 If the stock hits ₹2,430 → Profit = ₹3,000
🔹 If the stock hits ₹2,390 → Loss = ₹1,000
You exit the trade before 3:15 PM, regardless of profit or loss.
Pros and Cons of Intraday Trading
✅ Advantages
- Capital-efficient (due to the use of margin)
- No overnight risk (positions are closed by day end)
- Potential for consistent daily income
❌ Disadvantages
- High risk and volatility (due to rapid price swings)
- Requires significant screen time and strict discipline
- Can cause emotional stress if not handled properly
Who Should Try Intraday Trading?
Intraday trading is ideal for you if:
- You can spare time to track charts during market hours.
- You enjoy fast-paced decision-making.
- You’re willing to learn advanced risk management and technical analysis.
If you can’t monitor markets live or prefer slow and steady growth, consider positional or long-term investing instead.
Final Thoughts
Intraday trading offers excitement and quick profits—but it’s not a gamble. It demands discipline, strategy, and constant learning. Start small, use virtual trading if needed, and always use a stop-loss to protect your capital.
“Trading is not about being right; it’s about managing risk and following your system with discipline.”
Ready to delve deeper into the world of active trading?
Master the Art of Trading