How to Make Money in Intraday Trading?

Make Money in Intraday Trading: As online trading and discount brokerage have grown, many people have started actively trading in the stock market, which is a very beneficial thing.

And if we talk about intraday trading in the stock market, then it can be a great career in the financial market for those who like to perform on challenging conditions and who also enjoy taking risks.

There is both risk and profit in intraday trading and we have heard that the profits of smart intraday trading are also very good. So in such a situation, we have to know what is this intraday trading and how we can make money from it.

What is Intraday Trading?

Intraday trading means buying and selling of stocks. This is also called day trading and profit is made through the movement of market indices. Intraday trading is not done for investment purposes but for the purpose of making quick profits.

Intraday trading can be done in almost every type of stock. For example, a stock is worth Rs 500 in the morning and then within 2 or 3 hours, it becomes worth Rs 550.

In such a situation, if you have bought 1000 shares in the morning, then you can buy it at the same day. When its price increases, you can sell it at Rs 550 and by doing this you can make a profit of Rs 50,000 in a few hours and this is called intraday trading. [Make Money in Intraday Trading]

Steps to Make Money in Intraday Trading:

Here are step-by-step processes to earn money in intraday trading.

Step 1: Pick Highly Liquid Stocks

The most important and first step in intraday trading is to choose the stock because if you choose the right stock then you can make huge profits and if you choose the wrong stock then there is bound to be loss.

You should keep all these things in mind while picking the stock, so that you do not suffer loss but get profit, such as high volume trade should be selected, it should be very liquid like penny stocks which are shares of small-cap companies as much as possible whose share price is at ₹ 20.

You should pick maximum of 2 or 3 stocks at a time because it becomes difficult to monitor more stocks simultaneously. Apart from this, you should avoid volatile stocks which means don’t trade on stocks which seem unstable.

Find stable stocks and choose them only. You should always select your trades according to the market trends because the one which is in trend often brings profit.

Step 2: Use Technical Analysis

An intraday trader must have a good knowledge of the marketplace and the sense develops with experience because on the basis of this, profit can be made in the stock market, otherwise there are chances of huge losses.

That’s why you should develop technical analysis and chart reading skills and utilize technical analysis to spot the trend, candlestick patterns and also use technical indicators like moving averages, bollinger bands, relative strength index etc. It’s better to take more risk in the beginning, try to understand the market gradually and then you can invest more money on trending market. [Make Money in Intraday Trading]

Step 3: Select a Trading Platform

While choosing a trading platform, you should always choose the best quality platform for intraday trading as you will be stuck on this particular platform. Choose platform which is easy to navigate and also provides a good user interface to the users.

Zerodha Kite is the largest and most popular trading platform for intraday trading in India. Through Zerodha Kite, you can buy and sell shares and along with it, also monitor your trades. Apart from this, people also choose platforms like Angel One and Dhan because these platforms provide the best quality services.

Step 4: Volatility

If you want to make big profits in intraday trading, then volatility is very important. Volatility means that any stock you buy has a high chance of movement.

If you choose a stock where there is no movement then you can’t make profit from that particular stock. That’s why it’s very important for a stock to be volatile. So if you do not see any special movements on any stock, then that stock is not good for intraday trading. [Make Money in Intraday Trading]

Things to Know Before You Start Making Money in Intraday Trading:

1. Start Small

Always start small in intraday trading which can be a good approach and it also helps the traders to gain experience and minimize the risk. Learn the basics of intraday trading like technical analysis, technical indicators, chart patterns, candlesticks patterns etc. Before getting into intraday trading try to learn about all of these things.

Learn about intraday trading from books, watch YouTube videos, take online courses which can help you understand different strategies and you can also use paper trading platforms where you can practice without investing real money.

2. Right Entry / Exit Points

You should decide the price at which you want to buy and sell the stock in an intraday trade and have a clear entry and target price.

In intraday trading, your entry and exit make your trade a perfect trade and it also decides your profit and loss.

3. Stop-Loss is Mandatory

In intraday trading, the importance of stop-loss order becomes very crucial because it reduces your losses. It’s an advance order to sell the shares in which the share price is sold as soon as it reaches the particular price point.

After placing the order, it’s important to monitor and as soon as the price hits your target or stop loss levels, you should exit while respecting the market. [Make Money in Intraday Trading]

4. Manage Risk

Managing risk in intraday trading is very important to protect your capital. You should always set a stop-loss before taking any trade so that you can reduce your losses as much as possible.

By managing risk in intraday trading helps you stay in the market long-term and also improves your overall trading performance.

5. Discipline

Talking about discipline, without discipline, intraday traders can’t have a good day and it can also be said that if any trader does not have discipline, then he will not be able to match his criteria within a day and will go into loss.

That’s why even though intraday trading appears to be an aggressive and hasty role, in reality it’s a role of discipline so that every day’s target can be accomplished on the same day and profit can be made.

6 Trading Strategies to Make Money in Intraday Trading:

Here are the best strategies and qualities on the basis of which you can become a successful intraday trader and make money from day trading.

1. Moving Average Strategy

Most of the traders depend on the daily moving average (DMA) of the stock. This moving average is a line on the chart which shows the behavior of the stock over a period of time and this chart shows the opening and closing rates of the stock.

So, through this moving average line, intraday traders get an idea of the average closing rates of a particular stock and also the up and down in price, due to which they can take the right decision for their stocks in a limited time and on the basis of this moving average. You can also track trends in the market through moving averages.

2. Relative Strength Index Strategy

Relative Strength Index (RSI) is an index form of particular time trading of a stock, which is called RSI. It ranges from 1 to 100 and graphically shows when a share will be bought and sold at the highest price.

RSI can be called a special friend of intraday traders because this indicator keeps giving moment-to-moment information about profit and loss to the traders so that they can make profit and avoid loss.

This means that to become a successful intraday trader and make money from intraday trading, it’s very important to understand this RSI indicator, only then this indicator can be very beneficial for you.

3. Range Trading Strategy

Range trading means that the price is neither going up nor down and moves sideways in a range. A beginner loses all his profit in the sideways market. The reason behind this is that almost all the indicators give us wrong signals. The market is in trending only 30% of the time and is in the range 80% of the time.

In the range market, we can trade in two ways, first on the basis of support and resistance and second on the basis of range breakout. During the range market, if we get any bullish and bearish candlestick pattern on support or resistance or any chart pattern then we can take trade on that basis. [Make Money in Intraday Trading]

4. Scalping Strategy

Scalpers have the mindset of taking quick entry and quick exit from any trade, hence it’s certain that along with time management, risk management is also very important in scalping.

If you do scalping in intraday trading then your mindset should be very strong, only then as a trader possible that you can make profit from it. If you do scalping then you have to select 5 to 10 stocks that are in Nifty 50 and you have to stick to them.

If we talk about scalping strategy, timing becomes a very important thing in intraday trading because if you choose wrong timing then you can also suffer loss, that’s why in the morning from 9:15 am to 10:30 am and in the afternoon at 2:00 pm to 3:30 pm, you can trade because maximum movement and volatility are seen during these times and while scalping always use chart time frames of 1, 3, 5 and maximum 15 minutes.

5. High-Frequency Trading Strategy

High-Frequency Trading (HFT) this complex algorithm is a type of financial trading that allows it to transact a large number of orders in a very short period of time, i.e. in a fraction of a second.

6. News-Based Trading Strategy

In News-Based Trading Strategy, traders look for events through various sources that can impact the stock price movement and take profit from it. According to various reliable news sources, company A also announces its intention to acquire company B. Such news increases the volatility in the stock market which benefits the intraday trend by buying and selling at the right time. [Make Money in Intraday Trading]

Can I Earn 5000 Per Day from Intraday Trading?

Yes, it’s not at all impossible to earn Rs 5000 per day through intraday trading. For this, you will have to do continuous learning and gain experience from the market. If you are trying to earn Rs 5000 per day from intraday trading, then it requires combination of discipline, patience and also strategies.

Many people search that can I earn Rs 5000 from intraday trading? Now you have to understand one thing that you will trade within a single day, that means you are not going to carry forward your position, there will be profit or loss today itself.

So can we make Rs 5000 per day with intraday trading? Yes, you can make more money from this, it depends on what is your capital and the second thing is that intraday trading is very risky, it can also lead to your loss, there is no guarantee of success. You have to trade properly according to a systematic strategy.

Sometimes there will be profit or sometimes there will be loss. You will have to see what is the risk and reward ratio and what is the percentage of your profitability. If you understand all these things then only you will be able to make money from intraday trading.

Conclusion

Hope you have learned everything about intraday trading with the help of which you can become a successful intraday trader and make money from intraday trading. Now next to this, a successful day trader can be made on the basis of your own knowledge, research, learning and discipline.

For this you should always keep one thing in mind which is patience, do not invest or trade anywhere by getting over excited and take advantage of day trading thoughtfully.

So I hope you have liked the information we have shared in this article, to know more about trading you can read our other articles too. [Make Money in Intraday Trading]

Frequently Asked Questions –

Q1. Can we really make money in intraday trading?

Yes, you can definitely make money through intraday trading. For this, you have to develop patience and discipline. Don’t get over-excited and trade or invest anywhere, otherwise you can also go into losses.

Q2. How can I earn 1000 daily in intraday trading?

Here are the rules to earn 1000 daily in intraday trading:

Choose the quality stocks
Develop a trading plan
Start small and grow gradually
Practice with paper trading
Implement risk management
Keep your emotions in control
Continuous learning

Q3. Is intraday trading very risky?

Yes, intraday trading is very risky. It can also lead to your loss, there is no guarantee of success. So you have to trade with a proper systematic strategy.

2 thoughts on “How to Make Money in Intraday Trading?”

Abdur Rahim

16 May 2024 at 17:02

To deposit money,we first need to know whether we are going to keep the money we want to deposit in a safe place.It is important to save money only if you know the basics.
Wendell Nom

26 August 2024 at 17:32

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