Capturing favorable price movements in a disciplined manner (without being greedy) is critical for making money in day trading. Once you learn this art, you would easily start picking the best stocks for intraday trading in India.
For example, you can buy ACC Cement stock at Rs. 955 and sell it at 960 to capture Rs. 5 profit.
All you need is to be disciplined enough to close the trade at Rs. 960 and not wait (get greedy) for the price to climb to Rs. 965.
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Which unfortunately many people do and lose money because the price moves sharply. Instead of rising to Rs. 965 the prices can move back to Rs. 950 in a few minutes.
As a beginner, you need to avoid such mistakes while doing intraday trading in India.
Likewise, you can make money even when the stock price is falling. In day trading you can sell the stock first and buy later (it’s called shorting a stock).
For example, if you predict that shares of Infosys will go down, then you can sell first at Rs. 597 and buy within the same day at Rs. 588, again making a profit of Rs. 9 per share.
This is what exactly people were doing (shorting) when the stock market crashed due to fear of COVID-19 in March 2020. People made tons of money by selling shares in the beginning and then buying later during the day when the prices have come down substantially.
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For example, people were making money using the above technique when the shares of Maruti Suzuki were falling on 23rd March 2020.
The stock started falling from Rs. 4600 to Rs. 4200 during the day giving ample chance to do sell-buy trades.
In case if you are not sure of the individual stock price movements then you can sell NIFTY.
During March 2020, NIFTY fell 3000 points, starting from 11,000 at the beginning of March to 8,000 points at the end of March 2020.
In day trading the buy/sell or sell/buy sequence does not matter because in the end, you won’t get any shares delivered to your account.
Experienced traders know this, but if you are new to intraday trading then the article has essential resources to help you get started.
You Need A Trading Account To Do Intraday Trading in India
Demat and Trading accounts help you to access the stock market for stock investing and trading.
Intraday trading requires a Trading Account and a linked bank account only. But stockbrokers will provide you the option of a Demat account as well so that you can invest long term in stocks.
If you don’t have Demat & trading account, I would suggest you to open a Zerodha account. I have explained all the steps for trading using the Zerodha account in the later part of the article.
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