Intraday Trading Guide#
Intraday trading involves buying and selling stocks within the same trading day. All positions must be squared off before market close.
When to Trade#
- Best hours: 9:30-10:30 AM and 2:00-3:15 PM (IST)
- Avoid: 10:30 AM - 1:00 PM (choppy, low volume)
- Pre-market: Check global cues, SGX Nifty, gap analysis
Popular Intraday Strategies#
1. Opening Range Breakout (ORB)#
- Wait for first 15-30 minutes candle
- Mark the high and low of this range
- Buy above high / Sell below low
- Stop-loss: Opposite end of the range
- Target: 1:1.5 or 1:2 risk-reward
2. VWAP Strategy#
- VWAP (Volume Weighted Average Price) = benchmark
- Price above VWAP → Bullish bias (look for longs)
- Price below VWAP → Bearish bias (look for shorts)
- Entries on pullbacks to VWAP
3. Moving Average Crossover#
- Use 9 EMA and 21 EMA on 5-minute chart
- Buy: 9 EMA crosses above 21 EMA
- Sell: 9 EMA crosses below 21 EMA
- Filter with trend on higher timeframe
4. Support/Resistance Bounce#
- Identify key intraday S/R levels
- Wait for price to touch and show rejection
- Enter with tight stop-loss below/above S/R
Intraday Checklist#
- Check global markets (US, Asia, Europe futures)
- Identify stocks with good volume (> 5L daily)
- Mark pre-market support/resistance levels
- Set daily loss limit (max 2% of capital)
- Use bracket orders for automatic SL/Target
- Square off all positions by 3:15 PM
Capital Requirement#
- Minimum recommended: ₹2,00,000
- Leverage available: 5x-20x (depending on broker/stock)
- Never risk more than 1-2% per trade