How Can I Learn Day Trading in India?
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How to Learn Intraday Trading Step-by-Step
Learning intraday trading requires education, practice, and a disciplined approach. Here’s a step-by-step guide to help you get started:
1. Learning:
Read Books:
Begin by reading books and articles on intraday trading. Some recommended books include
“A Beginner’s Guide to Intraday Trading” by Matthew Driver
“Technical Analysis of the Financial Markets” by John J. Murphy.
Attend Online Courses
Enroll in online courses offered by reputable traders. Websites like Investopedia, Udemy, and Khan Academy provide courses on trading strategies, technical analysis, and risk management.
Few reputable traders like Rachana Ranade, Pranjal Kamra, and PR Sundar offer free content on their YouTube channels.
2. Understand Market Basics:
Familiarize yourself with the basics of the stock market, including order types, market orders, limit orders, stop-loss orders, and margin trading.
As a beginner, you must learn everything from scratch. Do not hesitate to learn the basics.
Learn the fundamentals of technical analysis, including candlestick patterns, chart patterns, support and resistance levels, and various technical indicators like Moving Averages and Relative Strength Index (RSI).
3. Practice with a Demo Account:
Before risking real money, implement the strategies in paper trading websites with virtual money.
Practice executing trades, test different strategies, and get comfortable with the trading strategy in various market conditions without any financial risk.
4. Start Small:
Begin with a small capital and gradually scale up as you gain experience and confidence.
Avoid the temptation to invest large sums of money, you will get out of the market within no time.
5. Join Online Communities:
Join online forums, communities, and social media groups where experienced traders share insights and strategies.
Networking with other traders can provide valuable perspectives and support.
6. Adjust your Strategies:
Regularly review your trading performance and make adjustments to your strategy as needed.
The ability to adapt to changing market conditions is essential for long-term success.
Best Books to Learn Intraday Trading in India
There are many ways to learn intraday trading India like
In this article, I have listed the Top 5 Books to Learn Intraday Trading to become a Professional.
Intraday Trading requires a deep understanding of market dynamics, technical analysis, and risk management strategies.
For an aspiring trader like you books can serve as invaluable resources.
Here is the list of the best-selling books on intraday trading authored by experts in the field.
Best-Seller Intraday Trading Books:
1. Day Trading and Swing Trading the Currency Market
Technical and Fundamental Strategies to Profit from Market Moves
Author: Kathy Lien (Director of Currency Research at GFT)
Amazon Price: 4,765/-
Amazon Rating: 4/5
Buy on Amazon
2. A Beginner’s Guide to Day Trading Online
2nd Edition
Author: Toni Turner (Author of A Beginner’s Guide to Short-Term Trading)
Amazon Price: 1,309/-
Amazon Rating: 4.4/5 (1447 Ratings)
Buy on Amazon
3. How to Day Trade for a Living
A Beginner’s Guide to Trading Tools and Tactics, Money Management, Discipline and Trading Psychology
Suitable for Beginners
Author: Andrew Aziz
Amazon Price: 398/- Including GST
Amazon Rating: 4.4/5 (441 Ratings)
Buy on Amazon
4. Mastering the Trade, Third Edition
Proven Techniques for Profiting from Intraday and Swing Trading Setups
Author: John F. Carter
Suitable for those who want to learn Swing Trading & Day Trading techniques.
Amazon Price: 4,680/- Including GST
Kindle Edition: Rs. 1,441/- Including GST
Amazon Rating: 4.6/5 (701 Ratings)
Buy on Amazon
5. The Complete Guide to Day Trading
A Practical Manual From a Professional Day Trading Coach
Author: Markus Heitkoetter
Amazon Price: 2,500/- Including GST
Amazon Rating: 4.0/5 (79 Ratings)
Buy on Amazon
FAQs on Intraday Trading:
Q1: What is Intraday Trading?
Ans: Intraday trading involves buying and selling of equity stocks within the same day, aiming to get profits from short-term price fluctuations.
Q2: Is Intraday Trading Risky?
Ans: Yes, intraday trading carries risks due to the volatile nature of short-term price movements. It requires disciplined risk management and thorough market analysis. You have to sell the stocks by the end of the same day even if your positions are in losses.
Q3: Do I need prior trading experience to start intraday trading?
Ans: Reading a few books and attending courses is not enough to earn profits in intraday, practice with virtual money on paper trading sites like TradingView.
Q4: What are some common intraday trading strategies?
Ans: Breakout Trading, Pivot Points, Price Action Trading are some of the high probability strategies for intraday traders..
Q5: How do I choose the right stocks for intraday trading?
Ans: Look for stocks with high liquidity, volatility, and volume, as they are good to earn profits.
Q6: What role does technical analysis play in intraday trading?
Ans: One who become pro in using technical analysis will definitely stays at profit side in intraday trading. Price action and breakout trading are must learn strategies in technical analysis.
Q7: How important is risk management in intraday trading?
Ans: Risk management is essential in intraday trading to protect capital and minimize losses. Setting stop-loss orders, position sizing, and adhering to risk-reward ratios are common risk management techniques.
Q8: Can I make a living from intraday trading?
Ans: It requires skill, discipline, and continuous learning. Do not enter stock market if you are not able to make your living from other source of income.
Q9: Should I rely solely on books for learning intraday trading?
Ans: Books are valuable resources for learning trading strategies and techniques, but practical experience and continuous learning through practice, mentorship, and real-time market observation are also crucial for success.
Q10: How can I manage emotions while intraday trading?
Ans: Emotions such as fear, greed, and anxiety can impact trading decisions. Developing a disciplined trading plan, practicing mindfulness techniques, and maintaining emotional balance are key to managing emotions in intraday trading.
Best Way to Learn Intraday Trading
You should go through YouTube channels and ebooks that deliver good stuff for free.
Make a note of all functionalities that go into the process of trading Intraday.
Understand the flow chart that explains stock exchange activities, stock brokers, and the nature of enrollment for practicing trade more prominently Intraday trading.
You must for some days get into the WhatsApp groups, facebook groups, and online stock exchange (day trading) forums.
After learning inside out of the trading/intraday trading you must check whether it suits your appetite.
You must visualize whether you can make it to be an investment instrument or transform your participation into a full-time trading professional.
Make a note of the pros and cons of the intraday, and validate it with your personality, your financial preferences, and your interactiveness with the stock markets.
If you are inclined to make it a full-time profession, place your finances and time for it. In addition, you need to seek guidance from a stock broker/Official agency like SEBI, NSE, or BSE.
For a full-time professional, you must always consider online intraday trading sessions. You can find several trading experts on YouTube, just enter the video sessions and reach out by clicking the link provided in the description box.
Join Online Courses for Day Trading
After learning, you must enroll with an expertise to seek live help on risk factors when you indulge in trading, it may cost a few additional bugs but doing it can cut down losses on the trade earnings.
On the YouTube channel, you will find stock experts like Pranjal Kamra, Sunil Miglani, and ProCapital.MohdFaiz, CA Rachana Phadke Ranade, Groww, B Wealthy, Trading Chanakya, Siddharth Bhanushali, and many more.
In addition, you can approach StockPro which renders live learning sessions and the company has a massive following on the Telegram channel as well. It is a good platform for day trading live sessions and getting the company’s services.
Get an Exposure to Paper Trading
Remember your theoretical learning about Intraday Trading doesn’t make you a real-time player in stock’s day trading.
To become a good buyer in day trading, you must have sufficient live practice without making a financial investment.
Many companies have come up with new live trading platforms but it is only for practice and therefore you need not put real money in it. It is termed Paper trading.
One of the leading discount brokerage firms is Zerodha, which indulges in providing virtual experiences with unreal money.
Paper Trading:
As I said, paper trading is a trading platform, you practice trade with virtual money yet it creates a real-time environment. You can equate it with simulators that generate a real-time presence in trading.
You must enroll with such paper trading platforms, and conduct everything that you intend to do in real stock trades.
You must generate the previous day’s time frame, and the current day’s 1-minute, 4-minute, and 15-minute time frame to draw inferences.
You must practice candlestick charts which define buying and selling patterns. Then, invest unreal money to purchase stocks and sell them to make profits.
You will get a complete picture of the entry and exit levels through paper trading and shall comfort you in real-time situations.
Caution:
Remember, day trading is a buyer’s market so you face tough and tricky situations when trading as the stock volatility is high in it.
Intraday Trading Rules
In intraday trading, you need to play by the rules. You must identify the best ways and means of conducting day trading just to obtain good returns on your trades.
One advantage is, that if you follow a set of rules that govern the day trading you can execute your trade plan with ease.
When I began to adopt those ground rules in day trading, I developed a thorough principle in day trading and a harnessed temperament that suits the stock market trading environment.
As an individual investor when I did conduct the stock trades efficiently then why can’t you do it?
Blindly follow the trading rules defined by stock experts and you can visualise it in the upcoming lines. visualize the info penned in the later lines.
Tips for Selecting the Right Stock Brokers:
You must never reconcile losses incurred in stock trading but be alert from the movement you enter the markets to exit the markets. For that, you must follow the ways.
Always try to seek expert advice and try to obtain the best trading services.
Get registered with stock brokers providing technical indicators and analyze candlestick charts dependent on different time frames.
Keep a proper note of the service charges levied by stock brokers on your investments, do check for hidden charges.
Caution:
Intraday trading allows you to have margins from stock brokers with whom you are registered.
Margins allow you to trade more than five times your trading account. In case you have Rs 100/- in your trading account, you will be permitted to trade up to Rs 500/- and your stock broker shall cover the stock expenses.
Winning will give you the most but losing money will cause a heavy burden as you are indebted to the stock broker for an additional amount of Rs 400/-.
Simple Strategies to Evaluate Your Day Trading:
Technical Indicators:
The buying and selling activity lasts from a few minutes to a few hours in a day trading sessions and hence technical indicators form a backbone in analyzing the probable stock price swings.
You will have to be in the direction of the trade, the technical indicators explain the upward trend, downward trend, and sideways.
Time Frame Charts:
You will come across candlestick charts that are derived in a specified time frame such as a 1-minute, 4-minute, or even a day timeframe.
These time frames expose the right timings to make an entry or exiting from, in a day trade.
Adopt Multi Time Frame Analytics:
You may have heard of multi-time frame analysis, which suggests combining an analysis of the previous day’s time frame, and the current day’s small time frame chart.
The resultant analytics provides entry and exit from day trading with higher profits.
Step-in 15 Minutes After Market Opening Bells:
The first five minutes is a time when the market needs to settle down, so from 09:15 am to 09:30 am. Do not place a trade at that time, since human emotions are high, it actively leads to unpredictable results.
Aspire for a High RR ratio:
Economists say the risk-reward ratio is what governs your returns, the higher the risk you will secure a higher reward.
Therefore, aspiring for a higher RR ratio is always recommendable. Most of the successful traders maintain at least a 1:2 risk-reward ratio.