Intraday trading involves buying and selling stocks within the same trading day — all positions are squared off before the market closes, ensuring the net position is zero by day-end. You can either buy first and sell later or sell first and buy later (called short selling), but no delivery of shares happens. Instead, profits or losses are settled in cash and reflected directly in your trading account.
Let’s break down the essentials every beginner must understand before jumping into intraday trading.
5 Key Things Beginners Must Know About Intraday Trading
1. Intraday Orders Offer Higher Leverage
When placing an intraday trade, you get access to higher leverage — meaning you can trade with much more than your capital. For example, with ₹10,000, you may be allowed to take positions worth ₹70,000–₹80,000.
Tip: Define your trade as “intraday” and use bracket or cover orders (with predefined stop loss and profit target) to maximize margin benefits.
2. Leverage Magnifies Both Gains and Losses
Leverage can be a double-edged sword. If your trade works in your favor, you can make multiples of your capital. But if it goes against you, losses are equally amplified.
A 2% move against a 7x leveraged position can result in a 14% capital loss! Always use a stop-loss.
3. You Are Responsible for Closing Positions
Don’t rely on your broker’s system to auto-close your intraday trades.
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Most brokers close all open intraday positions between 3:00 pm and 3:15 pm.
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But if there’s a technical issue or low liquidity, you bear the risk.
Always aim to exit trades well before the broker’s cutoff time.
4. Consistency Matters More Than One-Day Gains
Intraday trading isn’t about daily profits — you will have both winning and losing days. What matters is:
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Consistent strategy
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Controlled losses
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Cumulative profitability over time
Think in weeks or months, not just single trades.
5. Learn Charting Basics — Don’t Rely on Tips
Avoid blindly following tips from social media or groups.
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Learn basic chart patterns, price action, and volume behavior.
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Even simple indicators like moving averages, RSI, or support/resistance can guide your trades.
You don’t need to be a pro — just be confident in reading simple charts.
How Beginners Should Approach Intraday Trading
Intraday trading has a steep learning curve. Here are 3 golden rules to ease your journey as a beginner:
1. Start Small, Scale Gradually
Begin with a small trading capital and small order sizes.
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This limits your exposure and helps build confidence.
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Gradually increase size only when your strategy shows consistent results.
Focus first on learning, not earning.
2. Create a Plan — and Stick to It
Before every trade, know:
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Your entry price
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Stop loss
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Target profit
Once the plan is made, follow it with discipline. Don’t change decisions mid-trade based on emotions or sudden news.
Inconsistent behavior is a major reason beginners fail.
3. Minimize and Manage Losses
Losses are part of trading, but large losses are avoidable.
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Use stop-loss orders.
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Exit quickly when trades go against you.
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Never let a small loss turn into a big one.
Stay humble. Let the market teach you — and learn from it daily.
Final Thought: Master the Process, Not Just Profits
Intraday trading can be exciting and rewarding, but only if approached with the right mindset, tools, and discipline. As a beginner, your first goal should be to preserve capital, learn the process, and build confidence.
Once you’re comfortable with risk management and chart reading, profits will follow.
