Intraday trading means buying and selling within the same trading day, closing all positions before the market closes. No overnight risk, quick results, and the feeling of being in the action — it is easy to see why it attracts beginners.
It is also the hardest style to do well. SEBI's study of intraday traders in the equity cash segment found that around seven out of ten individual intraday traders lost money in FY23, and losses were higher among frequent traders. This guide explains how intraday trading works and how to approach it responsibly.
How intraday trading works in India
- The normal market session runs 9:15 am to 3:30 pm IST, with a pre-open session from 9:00 am (market timings).
- Intraday positions must be squared off before the close; brokers auto-square positions near the end of the day.
- Brokers offer intraday leverage within SEBI's margin rules, which magnifies both gains and losses.
- You can short sell intraday — sell first and buy back later — in the cash segment.
Understand the costs first
Intraday traders pay costs on every trade: brokerage, STT (on the sell side for intraday equity), exchange transaction charges, SEBI fees, GST and stamp duty — plus slippage. Small targets can be eaten entirely by costs. Calculate them with the brokerage calculator before you trade.
Choosing stocks for intraday
- High liquidity: large daily volume and tight bid-ask spreads.
- Enough movement: stocks that move meaningfully during the day.
- Clear charts: clean levels and trends.
- Avoid illiquid penny stocks — easy to enter, hard to exit.
Many beginners focus on index heavyweights or index-linked instruments for liquidity.
A pre-market routine
- Check global markets and major news on our markets and news pages.
- Mark the previous day's high, low and close, and today's pivot points.
- Identify key levels on the daily chart (support and resistance).
- Write a short plan: which setups, maximum trades, daily loss limit.
Three beginner-friendly intraday setups
1. Opening range breakout
Mark the high and low of the first 15–30 minutes. Trade a breakout of that range in the direction of the daily trend, with volume confirmation. Stop on the other side of the range or below the breakout candle.
2. VWAP pullback
On a trending day, buy a pullback to VWAP that holds with a bullish candle (or short a rally to VWAP in a downtrend). See VWAP trading strategy.
3. Previous day high/low break
A strong break of yesterday's high (or low) with volume can lead to trend days. Trade the break or the retest.
Risk rules for intraday traders
- Risk a small fixed amount per trade — 0.5–1% of capital (position size calculator).
- Always use a stop-loss order.
- Daily loss limit: stop after, for example, 2% loss or three losing trades.
- Maximum two or three trades a day while learning.
- Avoid trading the first few minutes after the open until you are experienced.
- Do not hold an intraday trade overnight because it is in loss.
Why many beginners should not start with intraday
- It requires full attention during market hours.
- Decisions are fast, and emotions run high.
- Costs are higher relative to typical gains.
- Mistakes compound quickly.
Many traders do better learning on daily charts first with swing trading, then moving to intraday once they have discipline and a tested method.
Practise before risking money
- Paper trade your setups for a few weeks.
- Record every trade in a trading journal.
- Test rules on historical data where possible — the strategy builder supports 15-minute and 1-hour crypto data.
Tax note
In India, profits and losses from intraday equity trading are generally treated as speculative business income and taxed at slab rates, with specific rules for set-off. Read tax on intraday and F&O income and consult a tax professional.
Key takeaways
- Intraday trading is the most demanding style; most beginners lose money.
- Know your costs, trade liquid stocks and follow a pre-market plan.
- Use simple setups (opening range, VWAP, previous day levels) with strict stops.
- Set daily loss limits and consider learning swing trading first.
Frequently asked questions
How much money do I need for intraday trading?
You can start with a small amount, but costs and risk management matter more than capital. Risk only money you can afford to lose while learning.
What is the best time for intraday trading?
The first and last hours are usually the most active. Beginners may prefer to wait 15–30 minutes after the open for the first moves to settle.
Can I do intraday trading part-time?
It is difficult, because intraday requires attention during market hours. Swing trading fits part-time schedules better.
Where can I learn intraday trading properly?
Our technical analysis course covers intraday setups, VWAP and risk control. Start with a free demo class.
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