Intraday Stock Tips: What to Know Before You Trade
Intraday trading can be rewarding but also risky, especially for beginners in the Indian stock market. Unlike swing or long-term investing, intraday trades must be executed and closed on the same day. If you’re planning to start, it’s crucial to understand the basics, risks, and best practices before diving in.
What Is Intraday Trading?
Intraday trading involves buying and selling stocks on the same trading day. The goal is to capitalize on small price movements during market hours. It requires speed, strategy, and strict discipline.
Is Intraday Trading Right for Beginners?
Intraday trading is not ideal for everyone. Beginners often underestimate the emotional pressure and the need for quick decision-making. However, with the right tools and tips, new traders can approach intraday trading smartly and safely.
Top Intraday Stock Tips for Beginners in India
1. Start with Liquid Stocks
Trade stocks that have:
- High trading volume
- Tight bid-ask spreads
- Consistent price movement
Examples include Reliance, HDFC Bank, TCS, Infosys, and ICICI Bank.
2. Avoid Trading During the First 15 Minutes
The first 15–30 minutes after the market opens are highly volatile. Wait for the market to stabilize before making decisions.
3. Use Simple Technical Indicators
- Moving Averages: Confirm short-term trends
- VWAP (Volume Weighted Average Price): Acts as dynamic support/resistance
- RSI: Detects overbought or oversold conditions
4. Always Set Stop Loss and Target
Don’t trade without defining your risk and reward upfront. Example:
- Entry: ₹1,000
- Target: ₹1,020
- Stop Loss: ₹990
Stick to your stop loss even if the stock reverses later.
5. Avoid Overtrading
Limit your trades to 1–2 quality setups per day. Overtrading due to FOMO (Fear of Missing Out) leads to losses and fatigue.
6. Follow the Market Trend
Go with the broader market direction. If Nifty or Sensex is falling, avoid long positions unless there’s a strong reversal signal.
When to Trade Intraday in India?
Best time windows:
- 9:30 AM to 11:00 AM: Most reliable moves
- 1:30 PM to 2:30 PM: Midday volatility opportunities
Avoid the final hour unless you’re experienced.
Common Mistakes to Avoid
- Trading on tips without analysis
- Ignoring risk management
- Averaging losses (adding more to a losing trade)
- Not reviewing your trades for improvement
Useful Tools for Intraday Trading
- TradingView: Chart analysis
- Zerodha Kite or Upstox Pro: For fast execution
- Moneycontrol & NSE India: To track live market data
- Investing.com app: For real-time news and alerts
FAQs
Q1: How much money should a beginner use for intraday trading?
Start with ₹5,000–₹10,000 and trade with caution. Focus on learning, not profits.
Q2: Are intraday tips reliable?
Not always. Rely on your own analysis and risk management over random tips.
Q3: Do I need a separate account for intraday trading?
No, but you must select “intraday” or “MIS” (Margin Intraday Square-off) while placing the order.
Q4: What happens if I forget to square off my trade?
Your broker will automatically square it off before market close, possibly at an unfavorable price.
Q5: Is intraday trading legal in India?
Yes, it’s completely legal and regulated by SEBI.
