10 Steps to Make Profit in Intraday Trading | Espresso

Steps to Being Profitable for Intraday Trading

This can sound quite amusing! What are the steps to make profits in intraday trading? There are no set rules for making constant profits, and there are times when we tend to do all the right things, yet we face losses. But intraday trading is all about how you manage the risks and returns by using logic and trading charts.



While there is no guarantee of profitability, there are some intraday trading steps that you can take to enhance your chances of success. So, let us understand the top steps for intraday trading and how they will help you increase your shot at profitability as an intraday trader.

Top Steps for Intraday Trading

Here are the top intraday trading steps that you can take to increase your chances of profits as an intraday trader.

  • Create a trading rule book: The first step to being successful as an intraday trader is to create a rulebook. You must abide by the rules and regulations mentioned in the rulebook so that you can increase your chances of profits. The book should include information on the loss that you are willing to take, the capital depletion that you are able to afford, the stocks that you wish to choose, etc.
  • Define a stop loss and abide by it: As an intraday trader, no matter whether you are on the short side or the long side, you should have an in-built stop loss. The stop losses can be set at a level of resistance or support or as per the level that you think is affordable for you. Remember not to add the stop-loss after the trade has been executed. Once the stop-loss has been triggered, you have to close your position. Even if the trade goes against you, do not try to average it.
  • Set the loss that you want to take: This is one of the most important steps for intraday trading. You must define the amount of capital that you are ready to lose. Once you arrive at this point, you must stop all trading and return to the drawing board. For example, if you encounter this loss in the first hour of trading, then it is time for you to close the terminal for the day. Moreover, define the risk to reward ratio, which means the relationship that exists between the stop loss and the profits that you wish to earn.
  • Define clear targets for profits: As an intraday trader, no matter whether you are on the short side or the long side, you must have predefined profit targets that you wish to achieve. You can input these targets into the trading system as a means of bracket orders. So, when the stop loss is triggered or the profit target is achieved, it will lead to the cancellation of the other leg of the trade. Of course, you must not wait to add the profit target, but you do have a chance of trailing stop loss when you are on top of a trend.
  • Do not depend on tips and recommendations: If you are assuming that reading trading charts are rocket science, then you are mistaken. It is essential that you learn how to read the charts like Bollinger bands, resistances, supports, etc., so that you can become your own chartist. It is best not to depend upon any tips and recommendations as these can go wrong and lead to losses.
  • Sell on news and buy on rumours: This might seem a bit out of the ordinary, but this is one of the essential steps for intraday trading. Generally, when there is an announcement, it already has an effect on the price, so you have little to nothing on the table to help you. Hence, it is better to initiate the trade on the basis of expectations and then make profits once the announcement is made. This is a good strategy to get the maximum out of your intraday trading. But, do not give too much importance to rumours; instead, keep your ears open to hear what is happening around you.
    Also Read: When is Intraday Profit Credited?
  • Do not keep too many positions simultaneously: As an intraday trader, this is one of the major mistakes that you make. When you have a lot of positions open simultaneously, you are unable to do justice to each one of them as you can track a limited number of positions at one time. So, you tend to overlook some of the positions leading to losses. Therefore, it is advisable to keep 4-5 positions open at the same time to book profits.
  • If the market confuses you, do nothing: There are three ways to make money as an intraday trader: buying, selling and not taking part at all. This might sound a bit off track, but if you think that the market is too confusing at any moment, it is better to not take part in trading. Fishing in troubled waters often leads to losses and can be avoided if you just stay out of the market for some time. In this way, you will have the liquidity to trade when the right time arrives.
  • Listen to the trend: Following the trend is a fundamental rule that every intraday trader should follow. If a trend is relaying a message to you, listen to that message and trade according to what is being sent across. You must remember that you will not be able to outsmart the market and once you understand that, you will start generating profits.
  • Make a trading diary: A trading diary of how you fared during each day, the mistakes you made, and the improvements that can be made are essential. This will help you in understanding the problem areas, which will eventually lead to better intraday trading strategies.


Thus, these are some of the best intraday trading steps that you can follow to increase your chances of making profits in intraday trading. You can use some of these strategies so that you can become a better intraday trader and generate profits from your trades.

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Frequently Asked Questions

Some of the top intraday trading strategies include creating a trading rulebook, setting a stop loss, setting a target for profits, listening to the market trends, and staying out of the market if it is too confusing.

The movement of intraday stocks is dependent on the sentiments of the market. Therefore, you must study the stock market movements and trade based on your findings. It is also important to follow the above-given steps if you want to enhance your profitability.

In intraday trading, you have to square off your positions before the closing of the market. Therefore, you must choose stocks that have the required liquidity to execute these types of trades. But, it depends upon the trader, and you can trade depending upon your risk profile and understanding of the market.