How to do intraday trading in share market

 

Intraday trading means buying and selling on the same day. There's no overnight risk, but speed and discipline are required. Understand step by step:

Ø First, prepare the base.

- Account: Demat + trading account with intraday/MIS products.

- Margin: Brokers offer 3x to 5x leverage. You can buy ₹40,000 worth of stock for ₹10,000. Profit 4x, loss 4x.

- Tools: TradingView or broker's chart. Set a 5-minute or 15-minute timeframe. Include Supertrend, VWAP, and Volume.

 

Ø 2. How to choose stocks - Between 9:00 and 9:15

Not all stocks work for intraday trading. Apply these filters:

1. High Liquidity: Volume > 1 million shares daily. Like Reliance, HDFC Bank, Infosys.

2. High Volatility: Stocks that fluctuate 2-4% daily. Look for the top gainers/losers among the Nifty 50.

3. News/Catalyst: Stocks with results, bulk deals, and sector news. Stocks with gap ups/downs are best.

4. Avoid: Penny stocks, operators, and illiquid stocks. You'll lose money.

 

Ø 3. When to Buy/Sell - Entry Timing:

1. 9:15-9:30: Just watch. Let the opening range form.

2. 9:30-11:00: Golden hour. ORB breakout, VWAP pullback entry.

3. 12:00-1:30: Avoid. Volume is dry.

4. 2:00-3:00: Second chance. Entry if the morning trend continues.

5. After 3:15: Don't enter a new trade. Just square off. It will automatically square off at 3:20.

 

Ø 4. Strategy - 2 Simple Wale

A. Opening Range Breakout

1. Mark the high-low between 9:15 and 9:30.

2. If the price breaks the high after 9:30 with volume = Buy.

3. SL: OR Low. Target: 1:2 minimum.

 

B. VWAP Bounce

1. When the price pulls back to the VWAP in an uptrend.

2. Green candle near the VWAP + Supertrend green = Buy.

3. SL: Below the VWAP or Supertrend. Target: Day high.

 

Ø 5. Risk Management - Most Important

1. Capital Rule: Do not risk more than 2% of your capital in one trade. If you have 1 lakh, then a maximum of 2000 SLs per trade.

2. Position Size: Qty = Risk Amount / (Entry - SL). Entry 100, SL 98, risk 2000, so 2000/2 = 1000 shares.

3. Stop Loss: Decide on SL before entry. If you think about it after entering the trade, you will definitely incur a loss.

4. Target: Always 1:2 or 1:3. Earn 2-3 rupees for 1 rupee risk. Even with 50% accuracy, you will make a profit.

 

Ø 6.  5 Mistakes 90% of newcomers make

1. Not setting SL: A single trade will wipe out an entire week's profit.

2. Averaging Losses: Buying more shares in a falling stock = capital loss.

3. Overtrading: If you place 15 trades a day, you will be ruined by the brokerage.

4. Trading on tips: News channels, Telegram tips = the fastest way to lose.

5. Not having a plan: Taking trades after saying "let's see" is like a casino.

 

Ø 7. Daily Routine

9:00: Check global markets, SGX Nifty. Create a watchlist of 5-6 stocks.

9:15-9:30: Mark the opening range. Do not trade.

9:30-11:30: Setup time to trade. Maximum 2-3 trades.

11:30-2:00: Book profit or trail SL. Avoid new trades.

2:00-3:00: If the morning trend was strong, take one more trade.

3:10: Close all positions. Never hold.

 

Real talk: 95% of people lose money intraday because they think it's a lottery, not a job. First, spend three months paper trading or start with one share. Develop a strategy, backtest it, and then invest.