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Understand intraday trading — timing, strategy, indicators, risk management. A step-by-step guide for beginners with real examples.
Published by The Retail Trader · AUG 07, 2026 · Features
Understand intraday trading — timing, strategy, indicators, risk management. A step-by-step guide for beginners with real examples.
Intraday trading means buying and selling a stock within the same day. The position is opened during the day and closed during the day — not held for days, only within market hours.
Market hours: 9:15 AM – 3:30 PM (Mon-Fri)
Intraday vs Delivery:
• Intraday: Same day buy + sell. No delivery. Lower brokerage (usually). Higher leverage.
• Delivery: Buy today, hold as long as you want. Shares are transferred to your demat. Full payment needed.
Intraday data on TRT: The Pro plan (₹2,499/mo) includes intraday candles (1m, 5m, 15m, 30m, 1h, 4h). The Free plan has EOD data only.
Timeframes:
• 1 min — Use: Tick-by-tick, Best For: Scalping (advanced only)
• 5 min — Use: Short signals, Best For: Intraday entries/exits
• 15 min — Use: Balanced, Best For: Intraday main timeframe
• 1 hour — Use: Trend context, Best For: Intraday trend filter
• Daily — Use: Big picture, Best For: Align intraday trades with the daily trend
Beginners: Take trades on the 15 min chart. Use 5 min for entries. Don't use 1 min.
Margin/Leverage:
• Brokers offer 5x-10x leverage in intraday
• ₹10,000 capital = ₹50,000-1,00,000 buying power
• WARNING: Leverage is a double-edged sword. Profit grows, and so does loss.
• Don't always use full leverage. 2-3x max for beginners.
9:15 - 9:45 AM: Observation Period:
• DO NOT TRADE in the first 15 minutes
• Volatility is highest
• Price direction is not clear
• Wait for the first 15 min candle to form
9:45 - 10:30 AM: First Setup:
• The trend is clearer now
• Check: Price above VWAP? (bullish)
• Check: Volume above average? (participation)
• Check: Nifty/Bank Nifty trend? (market context)
• Entry: When the setup is confirmed
10:30 - 11:30 AM: Active Trading Window:
• Best time for intraday trades
• Trends established
• Volatility reasonable
• Clear signals on 5/15 min charts
11:30 AM - 1:30 PM: Choppy Zone:
• European markets haven't opened yet
• Volume is low
• Sideways movement is common
• Avoid new trades unless the setup is very clear
• Manage existing trades (trail SL)
1:30 - 2:30 PM: European Market Impact:
• European markets open (1:30 PM IST)
• Volume picks up again
• Trend change possible
• New setups possible
2:30 - 3:00 PM: Position Closing:
• Start closing positions
• Don't carry overnight risk
• Book profits on winning trades
• Cut losses on losing trades (don't hope for reversal)
3:00 - 3:30 PM: Closing Auction:
• High volatility in the last 30 min
• Institutional orders get executed
• Beginners: Avoid trading the last 30 min
• Advanced: Closing auction strategies possible
Must-Have (2-3 max):
• VWAP — intraday anchor, institutional level
• Supertrend (10, 2) — fast trend direction
• RSI (14) — momentum confirmation
Setup:
• Chart: 15 min (main) + 5 min (entry)
• VWAP on 5 min chart
• Supertrend on 15 min
• RSI on both
Buy Signal:
• 15 min Supertrend = green (bullish trend)
• Price above VWAP on 5 min
• RSI > 50 (momentum positive)
• Volume above 20-period average
• Entry: 5 min bullish candle close
• SL: Supertrend line OR VWAP (whichever is closer)
• Target: 1:2 minimum
Sell Signal:
• 15 min Supertrend = red (bearish trend)
• Price below VWAP on 5 min
• RSI < 50 (momentum negative)
• Volume above average
• Entry: 5 min bearish candle close
• SL: Supertrend line OR VWAP
• Target: 1:2 minimum
Position Sizing:
• Risk per trade: MAX 1-2% of capital
• ₹1,00,000 capital = ₹1,000-2,000 risk per trade
• If SL is ₹5 from entry, position size = ₹1,000/₹5 = 200 shares
Daily Loss Limit:
• Set daily loss limit: 3% of capital
• ₹1,00,000 capital = ₹3,000 daily loss limit
• If you lose ₹3,000 in a day → STOP TRADING
• Come back the next day. Don't revenge trade.
Max Trades Per Day:
• Beginners: Max 2 trades/day
• Intermediate: Max 3-4 trades/day
• More trades ≠ more profit. More trades = more fees + more emotion.
Mistake 1: Taking Every Trade:
• "The market is open, let's trade something" — WRONG
• No setup = no trade. Patience is profit.
Mistake 2: Not Placing A Stop Loss:
• Intraday without an SL = suicide with leverage
• Always place an SL. ALWAYS.
Mistake 3: Trading In The First 15 Min:
• Opening volatility will eat your SL
• Wait till 9:30 minimum
Mistake 4: Carrying A Position Past 3:30:
• Intraday means SAME DAY close
• Brokers charge extra for auto-square-off
• Overnight risk = unlimited
Mistake 5: Leverage Abuse:
• At 10x leverage, a 10% loss = 100% capital gone
• Use 2-3x max. Survive today to trade tomorrow.
Mistake 6: Multiple Simultaneous Trades:
• 3-4 open positions in intraday = impossible to manage
• Max 1-2 open positions at a time
Minimum ₹25,000-50,000. With less than this, it is hard to follow risk management.
High liquidity stocks: Reliance, TCS, HDFC Bank, ICICI, SBI, Infosys, Tata Motors, SBIN. Nifty 50/Bank Nifty options are also good.
1-2% per day maximum is realistic. ₹1,000-2,000/day on ₹1,00,000. With compounding, ₹20K-40K/month is possible — but with strict risk management.
Yes! The Pro plan (₹2,499/mo) includes 1m, 5m, 15m, 30m, 1h, 4h intraday candles. Free has EOD only. theretailtrader.org/charting
Swing trading (2-10 days) is better for beginners. Intraday demands experience and discipline.
Try intraday on TRT Pro: theretailtrader.org/pricing — ₹2,499/mo Free charting practice: theretailtrader.org/charting Telegram daily calls: @theretailtrader_in
Educational only. Intraday trading carries a high risk of capital loss. NOT investment advice.
This article is educational only — it contains no buy or sell recommendation, no claim of guaranteed returns, and no advisory. Rules, rates and mechanics are changed from time to time by the exchanges, SEBI and the RBI, so verify every number yourself with your broker or the official source.