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Intraday Trading

What Is Intraday Trading?

Writer
Santosh Meena
timer
August 1, 2025
What Is Intraday Trading?blog thumbnail

Quick Takeaways

  • Intraday trading involves buying and selling a stock on the same day.
  • It’s fast paced, high risk, but can offer quick gains with discipline.
  • Technical analysis, stop-losses, and volume tracking are key tools.
  • SEBI regulates all trades, ensuring safe market participation.
  • Swastika offers tools, education, and advisory to support new traders.

🧠 What Is Intraday Trading?

Intraday trading, often called day trading, is the process of buying and selling stocks (or other financial instruments) within the same trading day before the market closes.

📌 Example: You buy Reliance shares at ₹2,500 at 10:00 AM and sell them at ₹2,530 by 1:30 PM you’ve made ₹30 per share. But if the stock dips, you must exit the position the same day.

This contrasts with delivery trading, where shares are held for days or months. Intraday focuses purely on short-term price fluctuations, often using chart patterns, market news, and momentum.

🔍 Who Should Try Intraday Trading?

While intraday trading is not for everyone, it appeals to:

  • Active retail investors with time during market hours.

  • Those seeking short-term profit opportunities.

  • Investors looking to learn price action and technical charts.

⚠️ Disclaimer: Intraday trading involves high risk. It's not ideal for long-term wealth creation. But with discipline, strategy, and proper tools, many traders succeed.

📊 How Does Intraday Trading Work in India?

✅ 1. Choose a Reputable SEBI-Registered Broker

Trading can only be done through a SEBI-recognized broker like Swastika Investmart that provides:

  • High-speed platforms

  • Low latency execution
  • Real-time charts and analytics

✅ 2. Open a Trading + Demat Account

Even though you don’t hold shares overnight, a demat is linked for compliance. With Swastika, the onboarding is paperless, instant, and guided.

✅ 3. Select ‘Intraday’ While Placing a Trade

When buying a stock, choose “Intraday” or MIS (Margin Intraday Square-off) as the product type. Your trade must be squared off before 3:15 PM.

✅ 4. Use Margin (Leverage)

Brokers often allow 5x to 20x leverage meaning you can trade stocks worth ₹1,00,000 with ₹10,000 margin.

⚠️ High leverage = high risk. Losses can wipe out your capital quickly if not managed with stop-loss orders.

🧠 Popular Intraday Trading Strategies

🔁 1. Momentum Trading

Buy stocks that are moving rapidly due to news, results, or volume spikes.

🧪 Example: If Infosys declares strong quarterly results and opens 5% higher, a momentum trader rides the wave for quick profits.

📈 2. Breakout Trading

Watch key resistance levels. When a stock crosses it with volume, buy it.

🧠 Pro Tip: Use VWAP, RSI, and moving averages for confirmation.

🔄 3. Reversal or Pullback Trading

Identify when stocks are overbought/oversold and bet on a small correction.

Example: Nifty50 rises sharply in the morning and shows a bearish candlestick at 12 PM. A reversal trader may short for 30–50 points.

🧾 Key Tools Every Intraday Trader Must Know

Swastika's trading platforms integrate these tools with real-time alerts, so traders can act instantly.

📉 Risks Involved in Intraday Trading

  1. Market Volatility: Prices can reverse quickly on news.

  2. Emotional Trading: Greed and fear cause overtrading.

  3. High Leverage: A small price movement can amplify loss.

Overtrading: Multiple trades can rack up brokerage and taxes.

✅: At Swastika Investmart, we educate first-time traders via webinars, daily research reports, and one on one guidance ensuring informed decisions and responsible trading.

🔐 How SEBI Regulates Intraday Trading in India

  • Brokers must report trades in real time.

  • Leverage norms and margin requirements are strictly enforced.

  • Auto square-off is mandatory for intraday positions by 3:15 PM.

  • T+1 settlement ensures quick compliance.

Only SEBI-registered brokers like Swastika can provide the infrastructure needed for legal and safe trading.

🧠 Tips to Succeed in Intraday Trading

Tip Description

🧮 Start Small

Begin with 1–2 trades/day using low capital

⏰ Avoid Opening Volatility

Trade post 9:45 AM when trends settle

📉 Always Use Stop-Loss

Protect your capital against large drops

📚 Keep a Trade Journal

Analyze your wins and losses weekly

🧠 Learn Continuously

Markets evolve — stay updated via Swastika Academy

📲 Why Trade Intraday with Swastika Investmart?

  • SEBI-registered broker since 1992

  • Fast, intuitive mobile + desktop platforms

  • Zero brokerage on 1st trade of the day

  • Live technical research calls

  • Daily intraday tips & WhatsApp updates

  • Local relationship managers for handholding

🧠 Real Story: Rajesh, a retail trader from Indore, started intraday trading with ₹10,000 in 2023. With guidance from Swastika’s research desk and free training, he consistently earns ₹1,000–₹2,000/day all from his mobile.

🏁 Conclusion

Intraday trading is a high-speed game of psychology, discipline, and pattern recognition. It is not a shortcut to wealth but with the right tools, broker, and mindset, you can build a reliable source of income.

Swastika Investmart brings 30+ years of trust, transparent systems, and dedicated advisory perfect for beginners and seasoned traders alike.

🔗 Want to Start Intraday Trading?

👉 Open Your Intraday Trading Account with Swastika Today

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