Intraday Trading: Tips and strategies to improve your trade

Authored by
Team Espresso
November 14 2022
6 min read

Intraday trading means buying and selling shares on the same day before the market closes. It involves squaring off the position in the market before the trading hours end. It is also called Day trading.

Stock prices are volatile and keep fluctuating during the day. A day trader uses these upward and downward movements in share prices to generate profits from the trades. By the end of the day, there is either a profit or a loss from buying and selling shares. If an investor makes a profit, it will motivate them to further engage in intraday trading. That said, making profits in intraday trading is not easy, and a trader would need to follow several tips and strategies to clock profits. In this article, we talk about those intraday tips and strategies on how to choose the right stocks for intraday trading to help you generate profits.

Top Intraday Trading Tips and Strategies

A few of the top intraday trading tips that traders should note are:

Choose the Right Stocks:

Before beginning day trading, choosing the correct stock to purchase should be your top priority. Pick equities with high levels of liquidity because you would be buying and selling them during a trading session. Consider betting on large-cap or mid-cap stocks since they often have significant liquidity. Volatility in the stock price also matters, as the higher the volatility, the higher the opportunities for day traders. 

Set Stop Loss:

Setting a stop loss should be your first action after purchasing or short selling the stock. This will enable you to avoid suffering any big losses if the stock moves in the direction opposite to your predictions. Assume you buy a stock at Rs 500 and expect it to rise in value. As a backup plan, you set a stop loss at Rs 490. Now, if the market performs worse than you anticipated and drops to Rs 490, the stop loss will get triggered, and your stock will be sold at a loss of Rs 10. Additionally, you will be safeguarded from any future price drops.

Follow the Market Trends:

Ideally, stocks should be purchased if the market trend is favourable, and if it's bad, selling makes sense. It is never a smart idea to take an opposing perspective of the market since it can backfire. For instance, many people sell equities when the market is bullish in the hopes that the price will reverse. Such reversals are unusual and infrequently occur in small numbers.

Set Entry and Exit Targets:

After you've decided on a stock to trade, you'll need to set target prices for entry and exit strategies. Going into a deal without any goals in mind is a recipe for disaster. Set a price at which you want to acquire the stock and stick to it, even if that means missing out on the opportunity. Similarly, set a target price at which you'd like to sell the stock, even if doing so means you might miss out on any potential future gains.

Choose the right stocks for Intraday Trading  

Making profits in intraday trading is all about choosing the right stocks to invest in. Keep the following pointers in mind while choosing stocks:

Select News-Sensitive Stocks:

Choosing stocks that are news-sensitive is a common intraday stock selection approach. These stocks typically react to any favourable or bad news and taking positions is easy if you have a clear understanding of price movements caused by news. However, you need to exercise caution when dealing with equities that are highly news-sensitive. These equities occasionally move in opposition to the news. Even when there is good news, the stock price could still drop. Therefore, you should always invest with a stop-loss order in place to reduce the hazards of an unanticipated movement.

Choose Liquid Stocks:

While performing in intraday trading, investing in liquid stocks is crucial since the stock needs to be purchased and sold on the same day. Adequate liquidity ensures that the equity can be bought or sold whenever necessary, which aids in clocking profits that might result from significant price changes within a day.

Avoid investing in single stock:

Do not put all eggs in one basket. You might have heard this famous saying. This also applies to stock trading. It is recommended not to invest all your money in a single stock. Instead, you should diversify your intraday positions across a few stocks. Diversification helps minimise risks and balance intraday trade strategy.

How to make a profit in Intraday Trading

Any trader engaging in intraday trading does so to generate profit. To help you with that, here are a few ways how to make a profit in intraday trading:

Set Clear Profit Goals:

Regardless of whether you are long or short in the market, your intraday trade needs to have a predetermined profit target. These profit targets must be input into the system as a component of the bracket order so that when the stop loss or profit target is hit, the other leg of the order will also be immediately canceled. Don't wait to determine profit objectives for the future, but you can always use a trailing stop loss when you're jumping on a market trend.

Set Clear Loss Levels:

Set a maximum loss limit for various trading levels. Set a limit on how much of your capital you can afford to lose, and upon reaching that threshold, you must halt trading and start over. Additionally, you need to decide how much money you can lose in a single day. Have the self-control to shut down your screen for the rest of the day if such a loss happens during the first hour. Additionally, define your risk-reward as well, which is the connection between your profit aim and stop loss.

Start Small:

Although a few successful trades may have strengthened your confidence, it is still too soon to go all in. Therefore, in the beginning, don't be overly aggressive with your investments. Start by concentrating on no more than one or two stocks and increase the volume and value with time. Starting small will provide you with the chance to learn from your mistakes and gain more market knowledge so that you don't repeat the same ones. Increase the volume of trade gradually as your expertise and risk tolerance grow.


There are several charts available to show how the share has performed, including bars, graphs, candlesticks, and 5- and 15-minute charts. These enable investors to gauge a share's performance and trade accordingly while taking stop loss and profit booking into account.

Some people follow random investment recommendations without conducting their investigation and wind up losing money. Therefore, always take your time during trading sessions, thoroughly analyze the stock before investing, and never hurry.


Q. How many minutes chart is best for intraday?

The most popular intraday chart among traders is the 5-minute chart. You can use any chart, starting at 1 minute and going up to 15 minutes or an hourly chart.

Q. What is the most successful trading strategy?

Scalping is a well-known intraday strategy that involves selling stock as soon as the trade turns into a profit.

Q. What time is best for intraday?

Many industry experts believe that intraday trading should only be done between 10.15 AM and 2.30 PM. By 10 to 10.15 AM, morning volatility typically tends to settle down, making this the ideal time to execute intraday deals.

Intraday trading tools and techniques are substantially different from long-term investing. Intraday trading necessitates extensive market knowledge, and because trades are executed within hours, the margin of error is extremely small.


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