Intraday trading involves buying and selling stocks within the same trading day — no stock delivery happens, and all positions must be squared off before market close. While it seems straightforward, getting started the right way is crucial for long-term success.
Here’s everything you need to know before taking your first intraday trade.
Setting Out on Your Intraday Trading Journey
You don’t need a new account — your existing equity trading account is enough to start intraday trading. But here’s the catch:
Do you still need a demat account?
Yes. SEBI mandates that all equity trading accounts must be linked to a demat account, even if you’re not taking delivery. So make sure both are active.
When placing an order, clearly mark it as an “Intraday” trade — this gives you access to higher leverage and lower margin requirements.
Pre-Trading Checklist: 5 Steps Before You Trade
1. Build Your Watchlist — Focus on 10 Quality Stocks
Choose stocks based on:
Strong fundamentals and trustworthy management
High liquidity (so you can enter and exit easily)
High beta (stocks that move more than the market)
Limit yourself to just 10. That way, you can track them in-depth without being overwhelmed.
2. Define Your Trading Framework
For each stock:
Identify support & resistance levels
Set stop-loss levels to cap downside
Set profit targets based on expected price moves
Have all this defined before you place any order. Don’t improvise mid-trade.
3. Decide on Your Order Type
Use a market order when fast execution matters.
Use a limit order when price precision is more important.
Evaluate the volatility and liquidity before making your call. With only 5–6 hours of trading time, your order entry must be quick and precise.
4. Trade with Discipline — No Emotion, No Impulse
When stop loss is triggered, exit. Don’t rationalize or delay.
When target is hit, book profits. Don’t get greedy.
Stick to the plan you made at the start of the trade.
Discipline is more important than predicting the market correctly.
5. Always Close Out All Positions
Don’t convert an intraday trade into a delivery unless that was your plan. Keep delivery and intraday separate.
If you’ve shorted a stock and forget to buy it back, it could result in short delivery penalties or auctions.
Always reconcile your open positions with your trade book before the market closes.
Make a habit of maintaining an end-of-day checklist.
3 Must-Know Principles for Intraday Trading Success
1. Control Your Trading Costs
Intraday trades involve two transactions (buy + sell) per trade.
Add up brokerage, STT, GST, and exchange fees — they eat into your profits.
Choose a broker with low intraday brokerage or a flat-fee structure.
Your break-even depends heavily on keeping costs low.
2. “Do Nothing” is Also a Strategy
You don’t have to trade every day.
If markets are choppy or confusing, staying out is often the smartest decision.
Learn to recognize unclear market conditions — capital preservation > forced trading.
Good traders know when not to trade.
3. Your Next Trade is All That Matters
Don’t get too attached to your last win or loss.
Every trade is a new opportunity. Focus on executing well each time.
Keep a journal: log what worked and what didn’t to refine your strategy.
In intraday trading, learning never stops — and neither should your discipline.
Final Thoughts: Start Smart, Scale Later
Starting intraday trading isn’t just about placing fast trades. It’s about:
Following a structured, rule-based approach
Managing risks and emotions
Learning from every trade
Start small, stay disciplined, and track your progress. That’s how successful traders are made.
