What Is Intraday Trading? Pros, Risks & Key Tips for Beginners
What Is Intraday Trading? Pros, Risks & Key Tips for Beginners
Have you ever heard people say, “I bought and sold the same stock today”? That’s intraday trading — also known as day trading.
It means buying and selling a stock on the same trading day. The goal is to make a quick profit from the small price movements during market hours.
🔹 How Does Intraday Trading Work?
Traders look for stocks that are volatile — where price movements are fast. They use charts, indicators, and patterns to decide when to buy or sell — all within the same day.
No delivery happens — you don’t actually “own” the shares after the market closes. Everything gets squared off before the market ends at 3:30 PM (India time).
🔹 Benefits of Intraday Trading
- Quick Returns: You don’t have to wait for days or weeks for profit.
- Margin Facility: Brokers often allow you to trade with more money than you actually have.
- No Overnight Risk: Since all trades close the same day, there's no risk from global news affecting your stock overnight.
🔻 Risks of Intraday Trading
- High Volatility: Prices move quickly — both in your favour and against.
- Emotional Stress: Fast decision-making can cause panic or greed-based trades.
- Loss Amplification: Margins can increase both profits and losses.
✅ Tips for Beginners
- Start small — don’t risk big amounts on day one.
- Always use Stop Loss to protect your capital.
- Learn chart basics — support, resistance, volume, etc.
- Follow a strategy and keep emotions away.
🎯 Final Word
Intraday trading can be exciting, but it’s not for everyone. It needs discipline, speed, and constant learning. For beginners, it’s smart to practice on paper or in small amounts before jumping in fully.
Remember: In trading, survival comes before success.
📚 Join my Telegram channel for educational stock market insights and research:
👉 https://t.me/Investtrade_by_Ankit
⚠️ This is for learning purposes only. Please do your own research before making any investment decisions.
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