Day trading or intraday trading has always been popular in India. After all, it’s about making huge profits in just one day. You might have often heard the “buy low, sell high” mantra among day traders, which means buying stocks at low prices and selling them at higher prices. Sounds simple, right? Well, it’s not! Even seasoned traders sometimes lose more than thousands of rupees in day trading. If you’re an amateur trader in the Indian stock market, the following intraday trading tips can help maximize your profits and prevent losses.

Choose only liquid stocks

In simple terms, liquid stocks are those that can be easily bought and sold. Such stocks are traded in high volumes, so they are always in demand. The reason day traders focus on liquid stocks is that they want to sell stocks on the same day. If you select stocks with lower trade volumes, you may not find a seller and end up holding them. So, before starting trading each day, ensure you have shortlisted a few stocks for the day.

Enter the market after the first hour

An important tip for day trading in India is to avoid the first hour of trading. Typically, the market is extremely volatile in the opening hour. After about an hour, the day’s trend usually becomes clear, and that may be the best time to make your move. It’s also a good idea to follow stocks that you’re interested in and try to determine the right time to buy them during the day.

Set price targets

It’s crucial that day traders—beginners as well as advanced—set price targets before entering the market. You should always have a clear idea about how much profit is enough and how much loss is acceptable. This helps prevent unbearable losses and keeps you from becoming overly greedy if a stock price surges momentarily. To limit losses, experts advise setting a stop-loss target for each stock you buy. If the trade turns against you, the stop-loss will get triggered, closing the trade and minimizing losses.

Avoid going against the market

A beginner should avoid taking positions against the market trend. Going against the trend in day trading almost always results in a loss. If the market is bullish for the day, buy stocks that are already going up or are highly likely to rise in prices. An expert trading tip is that for a day trader to maximize the profit and avoid loss, they should always follow the market trend. If you go against the trend, you may trigger stop loss and end up losing money.

Remember – You’re not an investor

It’s important to keep in mind that day trading is different from investing. When you invest, you’re expecting profits in the long run, so price fluctuations during the day mean nothing. Day trading, on the other hand, is all about buying and selling on the same day. However, when prices don’t hit the trader’s target, they tend to hold the stocks, which can eventually incur losses. So, ensure your expectations are realistic and exit the market on the same day.

Keep reading and learning everyday
The tried-and-tested trading tip for becoming a successful intraday trader is to educate yourself. Read extensively about stock markets and follow reliable stock analysts online. Try to understand how experts analyze external factors and their impact on the market. Over time, it should become easy for you to select the right stock for intraday trading confidently. Additionally, you can also look for stock recommendations from renowned brokers if you’re not confident about your research.