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What Is Intraday Trading? A Beginner’s Guide to the Indian Stock Market

Posted by NIFM Academy

Intraday trading is one of the most talked-about trading styles in the stock market, especially among beginners who are looking for quick opportunities. For learners in the UK, USA, and Europe exploring the Indian Stock Market, understanding how intraday trading works is essential before placing any trades.

This guide explains what intraday trading is, how it works, its risks, and whether it is suitable for beginners, using clear and globally understandable language.

Before Trying Intraday Trading, Learn the Market Basics Properly

What Is Intraday Trading?

Intraday trading, also known as day trading, involves buying and selling stocks within the same trading day. All positions are closed before the market closes, and no trades are carried forward to the next day.

The goal of intraday trading is to benefit from small price movements that occur during the trading session.

How Intraday Trading Works

In intraday trading:

  • Stocks are bought and sold on the same day

  • Positions must be squared off before market close

  • Traders focus on short-term price movements

  • Technical charts and indicators are commonly used

Intraday trades are executed during normal market hours and are settled on the same day.

To understand the complete trading process, beginners should first know
How Does the Stock Market Work in India? Step-by-Step

Want to Trade Intraday With Discipline? Learn Professional Trading Skills

Key Features of Intraday Trading

Intraday trading has some unique characteristics that beginners must understand.

  • Trades are short-term

  • Requires quick decision-making

  • Involves higher risk compared to long-term investing

  • Depends heavily on market timing

  • Requires strict risk management

Because of these features, intraday trading is considered more demanding than other trading styles.

Tools Commonly Used in Intraday Trading

Intraday traders rely on specific tools to make decisions, such as:

  • Price charts

  • Technical indicators

  • Volume analysis

  • Support and resistance levels

Understanding these tools takes time and practice, which is why beginners should avoid rushing into live trading.

Confused by trading terms? These basic stock market words make intraday trading easier

Is Intraday Trading Suitable for Beginners?

Intraday trading is not always suitable for beginners, especially those who are new to market behavior.

Beginners often struggle with:

  • Emotional pressure

  • Rapid price movements

  • Overtrading

  • Poor risk control

For global traders, time-zone differences can also make intraday trading challenging.

Most Intraday Losses Happen Due to Emotions — Learn How to Control Them

Risks Involved in Intraday Trading

Every trading style carries risk, and intraday trading is no exception.

Common risks include:

  • Fast losses due to sudden price movements

  • Emotional decision-making

  • High transaction costs

  • Over-exposure due to leverage

Understanding risk is essential before choosing intraday trading as a strategy.

Capital Requirements for Intraday Trading

Intraday trading often requires:

  • Adequate capital

  • Ability to handle short-term losses

  • Discipline to follow stop-loss rules

Master Charts and Indicators Used in Intraday Trading

Beginners should clearly understand capital requirements before starting. You can learn more here:
How Much Money Is Required to Start Trading in India

Intraday Trading vs Other Trading Styles

Compared to swing trading or long-term investing, intraday trading:

  • Requires more time and attention

  • Carries higher short-term risk

  • Offers faster results but less margin for error

Many beginners prefer starting with swing trading or investing before moving into intraday trading.

Common Beginner Mistakes in Intraday Trading

Beginners often make mistakes such as:

  • Trading without a plan

  • Ignoring stop-loss levels

  • Chasing quick profits

  • Trading based on tips

Learning basic terminology and concepts helps reduce these errors. Understanding
Basic Stock Market Terms Every Beginner Should Know
is a good starting point.

Before trying intraday trading, understand how the Indian stock market actually works

Role of Regulation in Intraday Trading

Intraday trading in the Indian Stock Market operates under strict regulatory oversight. Rules related to trading hours, margins, and settlement are designed to protect market participants.

Understanding market regulation is important for responsible trading, as explained in
Role of SEBI in Indian Stock Market (Rules & Regulations)

How Beginners Should Approach Intraday Trading

A safer approach for beginners includes:

  • Learning market basics first

  • Practicing with small capital

  • Using strict risk management

  • Avoiding emotional trading

Education and discipline are more important than speed when starting out.

Not sure how much capital intraday trading really needs? Read this first

Final Thoughts

Intraday trading offers opportunities but also carries higher risk, especially for beginners. For learners in the UK, USA, and Europe, understanding how intraday trading works in the Indian Stock Market is essential before participating. Starting with education, risk awareness, and realistic expectations helps build confidence and reduces avoidable mistakes in the long run .


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