Intraday trading
Intraday trading

Intraday Trading in 2025: A Complete Guide to Earn Fast Profits

Intraday Trading in 2025: A Complete Beginner-Friendly Guide to Earn Fast Profits

Intraday tradings has emerged as one of the most preferred ways for new and experienced traders to make money from the stock market.

Unlike long-term investing, intraday trading focuses on capturing small price movements within the same trading day. A trader buys and sells a stock before the market closes, aiming to profit from short-term volatility.

Intraday trading
Intraday trading

In India, the official stock market timing is 9:15 AM to 3:30 PM, and all open intraday positions must be squared off before the session ends.

Because price movements are fast and unpredictable, intraday trading offers great profit potential—but also carries equally high risk without proper knowledge and discipline.

If you want to start intraday trading in 2025, this guide explains everything step by step: meaning, working process, strategies, indicators, tips, risk management, and the biggest mistakes beginners should avoid.


What Is Intraday Trading?

What Is Intraday Trading?
What Is Intraday Trading?

Intraday trading (also called day trading or same-day trading) refers to buying and selling financial instruments such as stocks, commodities, currency pairs, or indices within the same trading day. Traders do not hold positions overnight. Instead, they rely on:

  • Price action
  • Technical indicators
  • Market psychology
  • Short-term trends

The goal is to generate quick profits from frequent price fluctuations.

Unlike long-term investors, intraday traders do not analyze company fundamentals. Their decisions are based purely on charts and market behavior.


How Intraday Trading Works

To succeed as a day trader, understanding the workflow is essential.

1. Selecting the Right Stock

The ideal intraday stock should be:

  • Highly liquid
  • Volatile
  • Actively traded
  • From a trending sector

High-volume stocks make buying and selling easier.

2. Understanding Price Movements

Prices change due to:

  • Demand and supply
  • Market news
  • Economic data
  • Institutional buying/selling

Day traders study these movements using charts.

3. Using Charts and Indicators

Common tools include:

  • Candlestick charts
  • Support and resistance levels
  • Moving Average
  • RSI, MACD, VWAP
  • Volume analysis

These help traders time entries and exits.

4. Placing Orders

A typical intraday setup includes:

  • Buy or Sell order
  • Stop-loss order
  • Target price
  • Risk–reward ratio (minimum 1:2 or 1:3)

5. Squaring Off Positions

All intraday trades must be closed before market closing time. If not, brokers automatically square them off.


Benefits of Intraday Trading

1. Fast Profit Potential

Price movements within minutes or hours allow quick gains.

2. Leverage / Margin

Many brokers offer 5x, 10x, or even 20x margin, allowing traders to take larger positions with small capital.

3. No Overnight Risk

Intraday traders avoid risks from:

  • Global news
  • Gap-up/gap-down opening
  • Economic events overnight

4. Multiple Opportunities Daily

Markets move every minute, providing plenty of chances to trade.


Risks Involved in Intraday Trading

1. High Volatility

Prices can move sharply, causing big losses if stop-loss isn’t used.

2. Over-leverage

High margin can multiply both profits and losses.

3. Emotional Pressure

Fear, greed, and impatience often lead to poor decisions.

4. Lack of Knowledge

Traders who follow tips without learning charts tend to lose money.


Best Intraday Trading Strategies for Beginners

1. Breakout Strategy

A breakout happens when:

  • Price crosses a resistance zone (uptrend)
  • Price breaks support (downtrend)

Rules:

  • Confirm breakout with strong volume
  • Use 5–15 min charts
  • Enter after a retest
  • Place stop-loss below/above the retest candle

2. Scalping Strategy

Scalping means taking quick trades for tiny profits.

Best for:

  • Highly liquid stocks
  • 1–3 minute charts
  • Experienced traders

Scalpers rely on VWAP, momentum, and bid-ask behavior.

3. Moving Average Crossover

A basic trend-following strategy.

Example:

  • Buy when 9 EMA crosses above 21 EMA
  • Sell when 9 EMA crosses below 21 EMA

Works well in trending markets.

4. VWAP Strategy

VWAP (Volume Weighted Average Price) shows institutional trading zones.

Rules:

  • Buy above VWAP in an uptrend
  • Sell below VWAP in a downtrend
  • Avoid sideways markets

5. RSI Trading Strategy

RSI helps identify reversals.

  • RSI above 70 → Overbought
  • RSI below 30 → Oversold

Combine with support/resistance for greater accuracy.


Most Useful Indicators for Intraday Trading

  • Moving Averages – trend direction
  • VWAP – buy/sell zones
  • RSI – market momentum
  • MACD – trend strength
  • Bollinger Bands – volatility and reversals

Intraday Trading Tips for Beginners

1. Always Use Stop-Loss

Protects your capital from major losses.

2. Avoid Emotional Trading

Stick to your plan, not your feelings.

3. Trade Only 1–2 Stocks Daily

Too many trades = more mistakes.

4. Avoid Trading During Big News

Volatility becomes unpredictable.

5. Start Small

Begin with less capital and learn gradually.

6. Maintain a Trading Journal

Record entries, exits, and reasons for trading.


Risk Management Rules

1. Risk Only 1–2% Per Trade

If capital = ₹10,000
Risk = ₹100–₹200 per trade

2. Follow 1:2 or 1:3 Risk–Reward

If you risk ₹100, aim for ₹200–₹300 profit.

3. Avoid Over-Trading

More trades don’t mean more profit.

4. Position Sizing

Use fixed quantities; don’t randomly increase after losses.


How to Choose the Best Stocks for Intraday Trading

1. Highly Liquid Stocks

E.g., Reliance, ICICI Bank, Infosys, TCS, HDFC Bank

2. Volatile Stocks

Stocks showing strong price movement.

3. Sector-Based Stocks

Trade stocks from strong-performing sectors.

4. Stocks With News/Events

Such stocks show bigger intraday moves.


Best Time for Intraday Trading

TimeMarket Behavior
9:15 AM – 9:45 AMHighly volatile
10:00 AM – 12:30 PMBest for stable trends
1:30 PM – 3:00 PMMarket becomes directional
After 3:20 PMAvoid trading

Common Mistakes Beginners Should Avoid

  • Trading without a plan
  • Using too much leverage
  • Holding losing trades
  • Relying on tips/Telegram calls
  • Not using stop-loss

Intraday Trading vs Investing

FeatureIntraday TradingInvesting
TimeframeSame dayMonths/years
RiskHighMedium
StrategyTechnicalFundamental
Profit TargetSmall & frequentLarge & long-term
HoldingNo overnightYes

How Much Can You Earn Through Intraday Trading?

Income varies but typically:

  • Beginners: ₹500 – ₹5,000/day
  • Intermediate: ₹10,000 – ₹50,000/day
  • Advanced: ₹1,00,000+ per day

Your earnings depend on:

  • Capital
  • Strategy
  • Consistency
  • Discipline

Is Intraday Trading Good for Beginners?

Yes—if the beginner:

  • Learns technical analysis
  • Practices on a demo account
  • Uses proper risk management
  • Avoids emotional decisions

Intraday trading is a skill, not a gamble.


Conclusion

Intraday trading can be a rewarding skill in 2025 if approached with discipline, strategy, and continuous learning. Study charts, apply proper risk management, and trade with a clear plan. Avoid emotional decisions, don’t chase tips, and always protect your capital with a stop-loss.

With the right mindset and consistency, anyone can build a profitable intraday trading career.

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