How to Make Money in Intraday Trading: 10 Tips to Know

Intraday trading is one of the stock market's most dynamic and potentially rewarding areas. Unlike long-term investing, intraday trading focuses on short-term price movements and requires quick decision-making, discipline, and a clear strategy.

But how can beginners and aspiring traders make money from intraday trading? In this guide, you'll discover 10 actionable tips to help you succeed in intraday trading, with explanations, examples, and insights to make informed decisions in this fast-paced trading environment.

What Is Intraday Trading?

Intraday or day trading involves opening and closing positions within the same day. The goal is to profit from short-term price fluctuations in stocks, indices, forex, commodities, or derivatives. Unlike swing or positional trading, intraday traders don't hold positions overnight, which limits exposure to overnight risk.

Traders often use technical analysis, chart patterns, news, and indicators to find entry and exit points. Success in intraday trading depends on precision, speed, capital management, and psychological discipline.

Is It Possible to Make Money in Intraday Trading?

Yes, traders can make consistent profits in intraday trading, but it does not guarantee success. Many traders lose money because they lack preparation, discipline, or risk management. Intraday trading is a skill that requires practice, strategy, and continuous learning.

However, following our proven tips and techniques can help improve your odds of success and reduce unnecessary losses.

10 Tips on How to Make Money in Intraday Trading

1. Choose Liquid Stocks for Better Execution

Liquidity is crucial in intraday trading. A liquid stock allows traders to enter and exit trades quickly without significantly affecting the price. These stocks have higher trading volumes, tighter bid-ask spreads, and more accurate price discovery.

Examples of liquid instruments include:

• Large-cap stocks like Apple, Reliance Industries, or TCS

• Index-based ETFs such as SPY or NIFTYBEES

• Major currency pairs like EUR/USD or USD/JPY

Avoid illiquid or low-volume stocks, as they can result in slippage and make it harder to close positions at your desired price.

2. Set a Daily Profit and Loss Limit

Next, set clear daily profit targets and maximum loss limits. Once you hit your limit, stop trading for the day. This helps prevent emotional trading and minimises damage during volatile sessions.

For example, if your daily loss limit is 2% of your capital, stop trading once you reach that threshold, even if you believe the next trade could be a winner.

This approach promotes consistency and longevity in your trading journey.

3. Follow the Trend, Don't Fight It

A common mistake among intraday traders is trying to predict market reversals. Instead, trade with the trend. Use moving averages, trendlines, and volume indicators to identify the market's direction. Trend-following increases the probability of winning trades.

For example, if the market is in an uptrend and the price pulls back to a support level, that could be a buying opportunity. Don't go against the momentum unless there's a strong technical signal and confirmation.

4. Use Stop Loss Orders to Limit Risk

A stop loss is an essential risk management tool that automatically closes a trade if the price moves against you. Always set a stop loss before entering a position. Never assume the market will come back in your favour.

Without a stop loss, an intraday loss can quickly turn massive. Determine your risks per trade (e.g., 1% of capital) and place the stop accordingly based on technical support/resistance. This discipline can protect your capital over the long run.

5. Learn to Read Charts and Patterns

Technical analysis is the backbone of intraday trading. Learn how to read candlestick charts, identify support and resistance zones, and recognise patterns like:

• Flags and pennants

• Double tops and bottoms

• Head and shoulders

• Breakouts and breakdowns

These patterns can help you predict price action and identify profitable entry and exit points. Combine them with volume and momentum indicators to validate signals. The more proficient you are with chart reading, the more confident your trades will become.

6. Choose the Right Trading Strategy

There's no one-size-fits-all strategy in intraday trading. You must find a method that suits your personality, risk tolerance, and trading schedule.

Popular intraday strategies include:

• Breakout Trading: Buying when the price breaks above resistance or selling below the support.

• Scalping: Making multiple small trades daily to profit from minor price movements.

• Momentum Trading: Entering trades based on strong volume and price trends.

• Reversal Trading: Identifying overbought or oversold conditions for potential price reversals.

Backtest your strategy and follow a consistent plan. Avoid switching strategies too frequently based on short-term outcomes.

7. Time Your Trades with Market Sessions

Timing is everything in intraday trading. Some parts of the trading day are more active than others. For example:

• Opening hours (9:15 AM to 10:30 AM IST or 9:30 AM to 11:00 AM EST) tend to have high volatility and volume, making them ideal for breakout trades.

• Midday sessions are slower and prone to false signals.

• Closing hours can see a pickup in activity as traders square off positions.

Understanding the rhythm of the market can help you plan when to trade and when to stay out.

8. Avoid Overtrading and Revenge Trading

Overtrading is the enemy of discipline. It usually happens when traders get emotional after a loss or try to chase profits without solid setups. This leads to bad decisions, increased costs, and massive losses.

Stick to a defined number of trades per day. Focus on quality over quantity. After a losing streak, take a break instead of doubling down to recover quickly — this is known as revenge trading and is one of the fastest ways to blow up an account. Self-control is a core trait of successful intraday traders.

9. Keep a Trading Journal for Improvement

A trading journal helps you track performance, identify patterns, and learn from successes and failures. Record each trade with details like:

• Entry and exit price

• Time of trade

• Strategy used

• Reason for entry

• Outcome (profit/loss)

• What went right or wrong

Review your journal weekly to evaluate your consistency and make necessary adjustments. It's one of the most powerful tools for self-improvement and trading mastery.

10. Stay Updated with Market News

Intraday traders must stay up-to-date on economic events, earnings announcements, and breaking news. These can lead to sudden price swings and impact your trades.

Use an economic calendar to track key events such as:

• Interest rate decisions

• Inflation data

• Jobs reports

• Corporate earnings

Trading during high-impact news releases can be risky. Many traders prefer to avoid trading during these periods unless they specialise in news-based strategies.

Also, stay informed on overall market sentiment — whether bullish or bearish — which can influence price action across sectors.

Is Intraday Trading Right for You?

Intraday trading isn't for everyone. It demands time, focus, and emotional control. If you enjoy analysing charts, reacting quickly, and handling high-pressure environments, it could be a good fit.

However, if you prefer a slower pace or have a full-time job, consider swing trading or long-term investing instead. Remember, the goal is to find a trading style that matches your lifestyle and psychology.

Conclusion

In conclusion, making money in intraday trading is possible, but not a shortcut to riches. It requires discipline, preparation, strategy, and patience. Following the 10 tips outlined in this guide can help you build a strong foundation, manage risks effectively, and improve your performance over time.

Success doesn't come from winning every trade but staying consistent, limiting losses, and letting your edge play out over many trades. Keep learning, stay humble, and approach trading as a lifelong journey, not a get-rich-quick scheme.

Disclaimer: This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by EBC or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.