Intraday Trading

📘 What is Intraday Trading?

  • Buying and selling stocks or derivatives on the same trading day
  • No overnight holding
  • Profits made from small price movements
  • Requires quick decisions and discipline

✅ Advantages of Intraday Trading

  • No overnight risk (gap up/down)
  • Leverage/margin benefits
  • Daily income potential
  • Good for learning price action quickly

⚠️ Challenges of Intraday Trading

  • Highly stressful if undisciplined
  • Overtrading leads to losses
  • Emotions (greed/fear) cause mistakes
  • Requires fast reaction and proper setup

📊 Timeframes Used

  • 1-minute, 5-minute, 15-minute charts
  • Use higher timeframes (1hr/day) for trend confirmation

📈 Strategies for Intraday Trading

  1. Breakout Trading
    • Buy above resistance / Sell below support
    • Use volume confirmation
  2. Pullback Trading
    • Wait for a small reversal in the trend, then enter
    • Ideal with moving averages
  3. VWAP Strategy
    • Buy above VWAP in uptrend / sell below in downtrend
    • Good for banknifty/nifty
  4. Gap Up / Gap Down Trading
    • Trade first 15-min breakout with stop loss
  5. Reversal Strategy
    • Identify false breakouts or trend reversals

🧠 Intraday Mindset & Psychology

  • Stick to your plan
  • Accept small losses
  • Don’t chase the market
  • Avoid revenge trading

📌 Important Indicators

  • VWAP (very effective)
  • Moving Averages (EMA 9, EMA 20)
  • RSI (for overbought/oversold)
  • MACD (trend confirmation)
  • Supertrend (for beginners)

📋 Risk Management

  • Never risk more than 1–2% of your capital on one trade
  • Use strict stop-loss
  • Predetermine target and SL
  • Avoid trading with full capital

🔍 Stock Selection for Intraday

  • Liquid stocks (e.g., Reliance, HDFC, TCS)
  • Nifty 50 or Bank Nifty stocks
  • Check:
    • Volume
    • News
    • Technical levels

📅 Best Time to Trade

  • First 15 mins: avoid if beginner
  • Best: 9:30 AM to 11:30 AM
  • Avoid trading during lunch hours

🧾 Checklist Before You Enter a Trade

  • ✅ Market trend clear?
  • ✅ Stock in news or high volume?
  • ✅ Entry, SL, Target set?
  • ✅ Stop-loss placed?
  • ✅ Trading with capital you can afford to risk?

🛡️ Common Mistakes to Avoid

  • No stop-loss
  • Overtrading
  • Trading based on tips
  • Trading all stocks in watchlist
  • Holding intraday trade overnight