HOW TO GET ENRTY IN INTRADAY TRADING

1. Understand Intraday Tradin4g Basics

• What is it? Intraday trading (or day trading) involves executing trades within a single market session, closing all positions before the market closes to avoid overnight risks.
• High Risk, High Reward: It requires quick decision-making, market knowledge, and risk management due to volatility.
• Time Commitment: You need to monitor markets actively during trading hours.

2. Gain Knowledge and Skills

• Learn Market Basics: Understand stock markets, trading terminologies (e.g., bid-ask spread, volume, volatility), and how prices move.
• Study Technical Analysis: Focus on:
  • Charts: Candlestick patterns, support/resistance levels.
  • Indicators: Moving averages, RSI, MACD, Bollinger Bands.
  • Volume Analysis: High volume often confirms price trends.
• Understand Fundamental Factors: News, earnings reports, and economic events can impact intraday price movements.
• Resources: Books like Trading for a Living by Alexander Elder, online courses (e.g., Zerodha Varsity, Udemy), or YouTube tutorials.

3. Choose the Right Broker

• Select a Reputable Broker: Look for low brokerage fees, fast execution, and a reliable trading platform (e.g., Zerodha, Upstox, Interactive Brokers).
• Trading Platform Features: Ensure the platform offers real-time charts, technical indicators, and quick order execution.
• Demat and Trading Account: Open a Demat and trading account with the broker. Complete KYC (Know Your Customer) requirements.

4. Set Up Your Trading Infrastructure

• Capital: Start with an amount you can afford to lose (e.g., ₹10,000–₹50,000 for beginners in India). Intraday trading often requires higher capital for meaningful profits due to small price movements.
• Leverage/Margin: Brokers offer margin for intraday trading (e.g., 5x leverage), but use it cautiously as it amplifies both profits and losses.
• Tools: Use a fast internet connection, a computer/smartphone, and charting software (e.g., TradingView, MetaTrader).

5. Develop a Trading Strategy

• Choose a Style: Common intraday strategies include:
  • Scalping: Quick trades for small profits (1-2% per trade).
  • Momentum Trading: Trade stocks with strong price movements, often triggered by news or high volume.
  • Breakout Trading: Enter trades when a stock breaks above resistance or below support levels.
  • Reversal Trading: Trade when a stock reverses from a trend.
• Set Entry/Exit Rules: Define clear entry points (e.g., breakout above a key level), stop-loss (to limit losses), and target profit levels.
• Risk-Reward Ratio: Aim for a minimum 1:2 ratio (risk ₹100 to gain ₹200).

6. Practice with a Demo Account

• Use a paper trading or demo account to test strategies without risking real money. Platforms like TradingView or brokers like Zerodha offer simulators.
• Practice for 1–3 months to refine your strategy and build confidence.

7. Start Small and Manage Risk

• Position Sizing: Risk only 1–2% of your capital per trade. For example, with ₹50,000 capital, risk ₹500–₹1,000 per trade.
• Stop-Loss Orders: Always set a stop-loss to exit losing trades automatically.
• Avoid Overtrading: Limit to 2–3 trades per day to maintain discipline.

8. Stay Disciplined and Emotionally Detached

• Follow Your Plan: Stick to your strategy and avoid impulsive trades based on emotions or tips.
• Track Performance: Maintain a trading journal to record trades, outcomes, and lessons.
• Avoid Revenge Trading: Don’t chase losses by increasing trade sizes.

9. Stay Updated

• Market Hours: In India, equity markets operate from 9:15 AM to 3:30 PM IST. Be aware of pre-market and post-market sessions for preparation.
• News and Events: Monitor economic calendars, company announcements, and global market trends (e.g., via Moneycontrol, Bloomberg).
• Volatility: Trade liquid stocks (e.g., Nifty 50 stocks) with high volume for easier entry and exit.

10. Comply with Regulations

• Taxation: In India, intraday trading profits are treated as speculative business income and taxed as per your income tax slab. Maintain records for tax filing.
• SEBI Guidelines: Follow Securities and Exchange Board of India (SEBI) rules, such as margin requirements and risk disclosures.

11. Continuous Learning

• Join trading communities on platforms like X or Reddit (e.g., r/IndianStreetBets) to learn from others.
• Analyze past trades to identify mistakes and improve.
• Stay updated on market trends and new tools.

Tips for Beginners

• Start with 1–2 stocks to understand their behavior before diversifying.
• Avoid trading during high-volatility events (e.g., budget announcements) until experienced.
• Focus on consistency over quick profits.

Risks to Understand

• Losses: Intraday trading is high-risk, and most beginners lose money initially.
• Time-Intensive: Requires constant market monitoring.
• Emotional Stress: Rapid price movements can be stressful.

If you’re in India, platforms like Zerodha Varsity offer free resources tailored to Indian markets. For global markets, check brokers like Interactive Brokers. Always start small, practice, and prioritize risk management to build a sustainable trading habit.