Tips for Share Market Intraday Trading
Intraday trading is one of the most active ways of participating in the share market. It involves buying and selling stocks within the same trading day to take advantage of short-term price movements. While intraday trading can offer quick opportunities, it also requires discipline, planning, and risk awareness.
Many traders enter intraday trading expecting fast profits, but without the right approach, losses can occur just as quickly. This blog explains practical and general tips for intraday trading that can help traders build a structured and responsible trading mindset.
Understand What Intraday Trading Means
Intraday trading refers to trades that are opened and closed on the same day before market closing hours. Positions are not carried overnight, which reduces exposure to unexpected news or global market events.
Key features of intraday trading:
Short-term trades
Focus on price movement and volume
Requires quick decision-making
Demands strict risk control
Understanding these basics is essential before placing any intraday trade.
Start With Proper Market Preparation
Preparation is one of the most important intraday trading tips. Traders who prepare before market hours often make better decisions during live trading.
Pre-Market Preparation Includes:
Checking overall market direction
Reviewing global market cues
Identifying important support and resistance levels
Shortlisting stocks with good volume
Entering the market without preparation is similar to trading blindly, which increases risk.
Choose the Right Stocks for Intraday Trading
Not all stocks are suitable for intraday trading. Selecting the right stocks improves liquidity and execution quality.
Ideal Intraday Stocks Usually Have:
High trading volume
Good liquidity
Clear price movement
Moderate volatility
Avoid illiquid stocks, as they can be difficult to exit at the desired price.
Trade With the Market Trend
One of the most common intraday trading rules is to trade in the direction of the trend. Following the trend increases the probability of success.
How to Identify the Trend:
Observe overall market movement
Use basic chart patterns
Check moving averages
Look for consistent higher highs or lower lows
Avoid trading against strong trends unless there is clear confirmation.
Always Set Entry, Target, and Stop-Loss
A trade without a stop-loss is one of the biggest mistakes in intraday trading. Every trade should have a predefined plan.
Before Entering a Trade, Decide:
Entry price
Target price
Stop-loss level
This approach removes emotional decision-making and helps maintain discipline.
Importance of Stop-Loss in Intraday Trading
Stop-loss protects trading capital. Markets can move unexpectedly, and a stop-loss helps control losses.
Benefits of Using Stop-Loss:
Limits downside risk
Protects capital
Reduces emotional stress
Encourages disciplined trading
Accepting small losses is part of long-term survival in the share market.
Manage Risk Before Thinking About Profit
Risk management is more important than profit in intraday trading. Protecting capital ensures you can trade consistently over time.
Simple Risk Management Tips:
Risk only a small portion of capital per trade
Avoid excessive leverage
Do not trade too many stocks at once
Set a daily loss limit
Good risk management keeps losses under control even during unfavorable market conditions.
Avoid Overtrading
Overtrading often leads to unnecessary losses. Not every market movement offers a good trading opportunity.
Common Reasons for Overtrading:
Trading out of boredom
Trying to recover losses quickly
Lack of patience
Emotional decision-making
Quality trades matter more than the number of trades.
Best Time for Intraday Trading
Market volatility varies throughout the day. Understanding time-based movement helps traders plan better entries.
Typical Market Phases:
Opening hours: High volatility
Mid-session: Slower movement
Closing hours: Increased activity
Many traders prefer active sessions when volume and price movement are higher.
Use Technical Indicators Carefully
Technical indicators help analyze price behavior, but using too many can cause confusion.
Commonly Used Intraday Indicators:
Moving averages
Volume analysis
Support and resistance levels
Momentum indicators
Indicators should support price action, not replace it.
Control Emotions While Trading
Emotions like fear and greed are major challenges in intraday trading. Emotional decisions often lead to poor outcomes.
Tips to Control Trading Emotions:
Follow a written trading plan
Accept losses calmly
Avoid revenge trading
Take breaks when needed
A disciplined mindset is key to long-term trading success.
Avoid Trading on Tips and Rumors
Relying on unverified tips or rumors can be risky. By the time information reaches traders, prices may have already moved.
Focus on:
Chart analysis
Volume confirmation
Market behavior
Independent analysis is safer than following rumors.
Maintain a Trading Journal
A trading journal helps traders analyze performance and improve over time.
Record Details Like:
Entry and exit prices
Reason for trade
Profit or loss
Emotional state
Reviewing past trades helps identify strengths and mistakes.
Keep Learning and Improving
Markets change continuously, and traders must adapt. Continuous learning is essential for improvement.
Ways to Improve:
Review past trades
Study market behavior
Focus on discipline and consistency
Improve risk management skills
Trading is a journey that improves with experience and learning.
Conclusion
Intraday trading in the share market offers opportunities, but it also carries significant risk. Success depends not on prediction but on discipline, planning, and risk control.
By following these general intraday trading tips—such as proper preparation, trend-following, risk management, and emotional control—traders can build a more structured and responsible trading approach.
Disclaimer:
This content is for educational purposes only. Share market trading involves risk, and outcomes depend on market conditions and individual decisions.