How to Make Money in Intraday Trading

In the fast-paced trading world of today, where the thrust is often on quick and effective results, the term period of a deal has emerged as an important parameter. Intraday share trading is a detailed trade activity that has emerged as one of the most popular modes of trading in recent times. Intraday trading is the type of trading where the deal maturity period is less than 24 hours i.e. one day. This means that the traded stock option is retained for not more than one day at a time by any trader before the sale of the same is done.

As the name implies, intraday trading is a high-frequency model of trading that focuses more on the quick volume of trade instead of any long-term returns on the trade. Needless to say that such a trade can impede your financial growth if sufficient analysis and understanding is not displayed and if decisions not backed by market surveys or analysis are taken. 

By its very nature, intraday trading works on a day-to-day scenario and does not take any long-term implications into consideration. The trading is high paced and the focus is solely on a quick evaluation of the market situation during the day time. This means that any idea of overnight ownership of a stock option does not exist and as such, the trade deal must be finalized before the closure of business hours.  

While on one hand, this may seem quite a bit risky, given the fact that there are no long-term implications, yet in the case of intraday trading, this very factor also amounts to an advantage. This advantage stems from the fact that as overnight ownership of stock options is not possible, the traders do not have to worry about or speculate about the fund’s performance.

This, therefore, means that if done properly and with sufficient understanding, intraday trading can act as a cushion for protecting your funds from any kind of market instability or rapid fluctuations. Intraday trading thus acts in your favor by offering a hedge against the ill performance of a fund.

Basics of intraday trading:

In intraday trading, the trader executes a deal and earns a marginal profit. At a high frequency, this profit margin keeps on building up and is then utilized for rotation in the trade market. Needless to say that price fluctuations and the net evaluation of the stock plays a significant role in deciding the exact profit margin as well as the interest of the trader in keeping up the tempo of the trade volume, This effectively allows the buyer to utilize the generated benefits from a previous intraday trade deal as the input resource for the next deal and so on. A seasoned trader who knows and keenly understands the market trends can reap huge benefits from intraday trading as has been shown time and again.

The whole mechanism works like this:

Suppose a trader X invests a particular amount in a stock that is doing well owing to net evaluation and favourable demand. Now, this trader evaluates the stock and buys the option at a particular percentage of the total fund value that he/she has already kept aside. After the deal is listed in intraday charts, another buyer Y buys the stock and offers a day bid to X. Once this deal is made and is carried out, trader X receives the net payables as the net price for the stock that he/she had listed.

This allows a marginal profit along with the original price of the bid. This profit margin is then used for a new deal through a new bid and so forth. Given that the deals and the stock options are favourable, the net profit reaped after a given time is huge. Even if the trade bids do not always act in the trader’s favour, yet the gross losses suffered will not be substantial, implying thereby that the overall loss suffered by the trader will be limited.

Thus, in both the scenarios, intraday trading gave a significant ground to the trader is an order to reap major profits as well as keep the earnest funds secure form huge market losses.


In intraday trading, significant care must be taken to ensure that the decision to invest your funds is backed by significant market research and analysis. Any decision taken on the basis of a “hunch” is bound to create problems and one can go on suffering loss after loss if proper care is not taken. 

As already mentioned, long term pricing fluctuations in a stock’s pricing or evaluation do not impact the profit margin of a trader significantly. This is because the overall gains are to be reaped from the volume of trading and not the net quality or long term valuation of the stock in question. In addition to this, many firms offer credit facilities under certain terms for intraday trading and so, the high-frequency intraday trading can work best for you if you know how and where to invest. 

You must keep in mind the fact that although research is needed before investing yet this research does not have to be extensive or too detailed. Understanding the current situation of the stock market is where the key lies. For this, you need to be able to successfully and accurately understand the daytime price projections that often suffice for intraday trading.

Furthermore, those who are engaged in intraday trading know how to analyze the trends carefully before any major event can cause a catastrophic event in relation to the stock pricing and causing major upheavals in your profit margins. In case of any major occurrence of sudden consequences, those engaged in intraday trading generally gauge the trends before the rest. This allows them to benefit from sudden and unexpected market volatility.

From the above, it follows that detailed share trading should ideally involve credible market research. Such research is usually based on critical and technical parameters for which the assistance of certified firms must be taken duly so that the price projections are as accurate as they can be.

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