Author: Sampoorna Mettilda
Website: infoplay.xyz

If you are new to the stock market, one of the first terms you will hear is intraday trading. Many beginners want to know whether intraday trading can help them earn daily income. Some people believe it is easy money, while others lose money quickly because they enter without proper knowledge.

So, what exactly is intraday trading?

In simple words, intraday trading means buying and selling stocks on the same day before the market closes. You do not keep the shares overnight. The goal is to earn profit from short-term price movement during market hours.

In India, the stock market usually opens at 9:15 AM and closes at 3:30 PM. Intraday traders try to capture opportunities within this time.

This guide will explain everything in simple English so beginners can understand clearly.

Table of Contents

What Is Intraday Trading?

Intraday trading is also called day trading.

It means:

Buying shares and selling them on the same day
Or selling first and buying later on the same day (short selling in some segments)

The main purpose is to earn profit from price fluctuations happening within a few minutes or hours.

For example:

If you buy a stock at ₹500 in the morning and sell it at ₹520 in the afternoon, your profit is ₹20 per share (excluding charges).

Unlike delivery trading, you do not hold the stock for days, weeks, or months.

You can also read our beginner guide on Difference Between Investing and Trading at infoplay.xyz for better understanding.

Quick Comparison Table

Feature	Intraday Trading	Delivery Trading
Holding Period	Same day only	More than one day
Risk Level	High	Moderate
Profit Speed	Fast	Slow
Capital Needed	Lower (Margin available)	Higher
Suitable For	Active traders	Long-term investors
Overnight Holding	No	Yes

What Is an Example of Intraday Trading?

Let us understand with a simple example.

Suppose you choose Reliance Industries stock for intraday.

Example:

Buy Price = ₹1,450
Quantity = 100 shares
Total Value = ₹1,45,000

After 2 hours:

Sell Price = ₹1,465

Profit Calculation:

₹15 profit × 100 shares = ₹1,500 profit

After brokerage, taxes, and charges, the final profit may be slightly lower.

This is called intraday trading because both buy and sell happened on the same day.

Similarly, if the stock falls to ₹1,435, you may face a loss.

That is why stop loss is very important.

You may also like our article on How to Select Stocks for Intraday Trading at infoplay.xyz

Which Is Better, Delivery or Intraday?

There is no single answer because it depends on your goals.

Delivery Trading Is Better If:

You are a beginner
You have a full-time job
You want lower stress
You prefer long-term investing
You do not want to watch charts all day

Intraday Trading Is Better If:

You can monitor the market actively
You understand price action
You know risk management
You can handle fast decisions
You have discipline

Simple Truth:

For most beginners, delivery trading is safer than intraday trading.

Intraday may look attractive because profits can be quick, but losses can also happen very fast.

How Risky Is Intraday Trading?

Intraday trading is considered high risk.

Why?

Because prices move very quickly. Sometimes a stock can move sharply within minutes due to:

News
Global market movement
FII/DII activity
RBI announcements
Crude oil changes
Gift Nifty movement

Even experienced traders can face losses.

Major Risks Include:

Sudden market reversal
Emotional trading
Overtrading
High leverage
Lack of stop loss
Poor stock selection

That is why professional traders focus more on protecting capital than chasing profit.

What Are the Mistakes of Intraday?

Most beginners lose money because of common mistakes.

Top Intraday Trading Mistakes

1. Trading Without a Stop Loss

This is the biggest mistake.

Without stop loss, one bad trade can wipe out many good trades.

2. Overtrading

Taking too many trades in one day creates confusion and emotional mistakes.

Sometimes the best trade is no trade.

3. Following Tips Blindly

Many people depend on Telegram tips or random WhatsApp groups.

This is dangerous.

Always trust your own analysis.

4. Using Too Much Leverage

Broker margin can look attractive, but high leverage increases risk heavily.

5. Revenge Trading

After one loss, many traders try to recover immediately and lose even more.

6. Ignoring Market Trend

Buying in a strong downtrend or selling in a strong uptrend creates problems.

Trend matters.

7. No Trading Journal

Without recording mistakes, improvement becomes difficult.

Who Cannot Do Intraday Trading?

Intraday trading is not suitable for everyone.

Avoid Intraday If:

You cannot control emotions
You panic easily
You expect quick riches
You do not have time to monitor the market
You are using borrowed money
You cannot accept losses
You are still learning basic market concepts

Many people think intraday is a shortcut to easy money.

It is not.

It requires patience, discipline, and experience.

Why Do People Lose Money in Intraday?

This is the most important question.

People usually do not lose because the market is bad.

They lose because of poor decisions.

Main Reasons People Lose

No Proper Strategy

Random buying and selling is gambling, not trading.

Lack of Discipline

Even a good strategy fails without discipline.

Fear and Greed

These two emotions destroy most traders.

Fear causes early exits
Greed causes late exits

No Risk Management

Professionals think first about loss.

Beginners think only about profit.

That is the difference.

Unrealistic Expectations

Trying to double money quickly usually ends badly.

Consistency matters more than speed.

Can I Make a Living from Intraday Trading?

Yes, but not immediately.

Many people ask:

“Can I leave my job and depend only on intraday trading?”

The honest answer is:

Only after years of experience and consistent results.

To Make a Living from Intraday, You Need:

Strong strategy
Good capital
Emotional control
Risk management
Consistency
Patience
Real market experience

Most successful traders first survive, then grow.

They do not chase fast profits.

Important Advice

Never depend on intraday trading for monthly expenses in the beginning.

First learn. Then practice. Then scale slowly.

Best Tips for Beginners

Follow These Rules

Start with small capital
Use strict stop loss
Trade only 1–2 good setups
Avoid overtrading
Learn price action
Track Gift Nifty daily
Watch FII and DII activity
Maintain a trading journal
Focus on consistency
Never trade emotionally

These simple habits create long-term success.

Internal Resources You Should Read

To improve your trading knowledge, also read:

What is NSE and BSE in Stock Market — infoplay.xyz
Difference Between Nifty and Sensex — infoplay.xyz
How to Start Trading Stocks for Beginners — infoplay.xyz

These will help you build strong basics before entering intraday trading.

FAQ Section

Is intraday trading good for beginners?

It is better for beginners to start slowly. First learn basics, then practice with small capital.

How much money is needed for intraday trading?

You can start with small capital like ₹5,000 to ₹10,000, but proper risk management is more important than capital size.

Can I do intraday trading on mobile?

Yes, many brokers like Angel One, Zerodha, and Dhan offer mobile apps for intraday trading.

Is intraday trading taxable?

Yes, profits from intraday trading are taxable under business income rules in India.

Which indicator is best for intraday?

There is no perfect indicator, but many traders use:

VWAP
RSI
MACD
Moving Averages
Volume Analysis
ATR

Indicators should support strategy, not replace it.

Conclusion

Intraday trading can be profitable, but it is not easy money.

It requires:

Skill
Patience
Discipline
Risk control
Experience

If you enter the market without learning, losses are very likely.

But if you treat trading like a serious profession and focus on consistency, intraday trading can become a powerful skill.

Start small.

Learn daily.

Protect your capital.

That is the real path to success in the stock market.

Disclaimer

This article is for educational purposes only and should not be considered financial advice, stock recommendation, or trading signals. Stock market investments and intraday trading involve risk. Please consult your financial advisor before making investment decisions. We do not guarantee profits or protection from losses.