How to Make Profit in Intraday Trading

Intraday trading—also called day trading—means buying and selling a security on the same day to capture short-term price moves. It’s hugely popular in India and worldwide thanks to low-cost brokers, fast mobile apps, and real-time data. In India, intraday orders routinely account for a large share of cash-market turnover on active days (varies by day and segment). That popularity is a double-edged sword: many new traders jump in, few have a plan, and even fewer manage consistent profits.

This guide shows you how to make profit in intraday trading the right way—by choosing better stocks, nailing entries and exits, managing risk with stop-loss, and building discipline. You’ll get step-by-step playbooks, number-backed examples, common mistakes, and resources (including a quick review of the bestseller How to Make Money in Intraday Trading). If your goal is consistent, realistic income rather than “jackpot” days, you’re in the right place.

1) Intraday Trading Basics: What, How, Why

What is intraday trading?
Buying and selling the same financial instrument (stocks, futures, crypto, forex) within the same trading day. Positions are closed before the market ends, so no overnight risk.

How does it work?

You select liquid instruments (e.g., NIFTY 50 stocks, index futures).
You apply a setup (momentum, breakout, pullback, news reaction).
You define entry, stop-loss, and target before placing the trade.
You manage size based on risk per trade (e.g., 0.5–1% of your capital).
You exit by target, trailing stop, or time stop; never carry over to the next day.

Why do traders choose intraday trading?

No overnight gap risk from global news.
Frequent opportunities—multiple small edges per week.
Quick feedback loop improves learning speed.
Lower capital requirements than multi-day swing (varies by broker and segment).

2) Step-by-Step: How to Make Profit in Intraday Trading

Step 1: Choose the Right Stocks (or Instruments)

Pick instruments that move cleanly and are cheap to trade.

Checklist

Liquidity: High average daily volume; tight bid–ask spreads.
Volatility: Enough range to hit targets (e.g., use ATR—Average True Range).
Catalysts: Earnings, upgrades/downgrades, sector news, index inclusion.
Clarity: Clean trend/intraday structure; avoid choppy 1-min whipsaws.
Avoid: Illiquid smallcaps, stocks with frequent trading halts, or news you don’t understand.

Indian traders tip: Start with NIFTY 50/NEXT 50 names, index futures, or the most-traded largecaps. For beginners, equities (cash segment) are simpler than options.

Step 2: Define Entry & Exit Levels

Entries (examples; pick one approach and master it):

Opening Range Breakout (ORB): Trade a break above/below the first 15–30 minutes’ high/low.
Pullback to VWAP: Join the trend when price revisits VWAP with a rejection candle.
Moving Average Bounce: Buy dips to 20-EMA in an uptrend; short pops to 20-EMA in downtrends.
Support/Resistance Break & Retest: Breakout, then retest level; enter on strong rejection.

Exits

Fixed Reward: Target = 1.5–2.5× stop distance.
Trail by Structure: Move stop under/over higher lows/lower highs.
Time Stop: If price stalls beyond X minutes, exit to free capital.

Step 3: Risk Management (your profit engine)

Golden rules

Risk per trade: 0.25–1.0% of total capital (beginners: 0.5% max).
Daily loss cap: 1–2× your risk per trade (e.g., stop after 2R down).
Max concurrent positions: 1–2 while learning.
Position sizing formula:
Position Size = (Account Risk per Trade) / (Entry − Stop distance)
Example: Capital ₹100,000; risk 0.5% = ₹500. If your stop is ₹2 away, buy ₹500/₹2 = 250 shares.

Why this matters: Without sizing and stops, a few big losses erase months of small wins.

Step 4: Use a Stop-Loss—Always

Hard stop (broker order): Set when entering; prevents disasters.
ATR-based stop: Stop = Entry − (1–1.5 × ATR) in longs (or plus in shorts).
Structure stop: Just beyond last swing low/high.
Time-based exit: If thesis fails to play out by your time window, get out.

Minimum profit in intraday trading is not a fixed rupee amount; it’s hitting at least 1–1.5R (R = your risk per trade). That keeps your average profit in intraday trading healthy even with modest win rates.

Step 5: Master Trading Psychology & Discipline

Pre-commit: Write your plan before the session.
Fight FOMO: If you didn’t plan the trade, skip it. Missing is cheaper than losing.
No revenge trades: After your daily loss cap, stop.
Mindful breaks: Step aside after big wins/losses to reset.
Journal everything: Setup, reason, emotions, screenshot, and outcome.

Many ask how many people make profit in intraday trading. The honest answer: fewer than you’d think. Most new traders struggle because of over-sizing, no stop-loss, and emotional decisions. Your edge isn’t a secret indicator—it’s process + risk control.

3) Practical Strategies for Beginners & Intermediates

Below are simple, rules-based day trading strategies. Start with one, backtest, then paper-trade before going live.

A) Momentum Breakout (Beginner-Friendly)

Concept: Trade strong breakouts aligned with the broader market trend.

Rules

Pre-market: Build a watchlist of gainers/losers, earnings names, sector leaders.
Wait for the Opening Range (first 15–30 minutes).
Long if price breaks above ORH (opening range high) with volume; short if below ORL.
Stop: Just inside the range (e.g., below ORH breakout candle’s low).
Target: 1.5–2.5R or trail below 20-EMA.

Pro tips

Align with index direction (NIFTY/Bank NIFTY trend).
Avoid crowded breakouts near major resistance (previous day high/low).

B) Scalping the VWAP

Concept: VWAP (Volume-Weighted Average Price) acts as an intraday mean and dynamic support/resistance.

Rules

Identify a clear uptrend (higher highs, strong breadth).
Wait for price to pull back to VWAP and print a bullish rejection candle (e.g., hammer).
Enter long with stop a few ticks below VWAP or the rejection low.
Target: Recent swing high or 1.5–2R; consider partials at 1R.

Avoid when price chops around VWAP with no trend (you’ll get whipsawed).

C) News-Based Trading (Caution)

Concept: Trade fresh news (earnings, guidance, regulatory, M&A).

First move: Often extreme; wait for the first pullback or flag.
Confirm: Volume surge + tape speed.
Risk small: News reversals can be violent; use hard stops and smaller size.

India tip: For domestic stocks, watch earnings schedules and sector headlines; for global cues, monitor overnight futures and big macro prints (inflation, Fed decisions) that can ripple into Indian markets.

D) Technical Analysis Basics (Simple & Effective)

Candlestick patterns:
- Hammer / Shooting Star: Reversal on rejection of lows/highs.
- Engulfing: Strong reversal; enter with stop beyond pattern.
Moving Averages:
- 20-EMA for short-term trend; 50-EMA for bigger intraday swings.
- Crosses are noisier; prefer pullbacks to MA in trend.
RSI (14):
- Use RSI divergences as heads-up, not standalone signals.
- In strong trends, RSI stays overbought/oversold; don’t fade blindly.
Volume: Breakouts without volume are suspect.

4) Realistic Profit Expectations + Mistakes to Avoid

What’s a “good” profit in intraday trading?

A better frame than “rupees per day” is return per unit risk and basis points (bps).

Beginners (live trading): Aim for 0.2–0.6% of capital on average on green days, with tight risk on red days.
Intermediates: 0.5–1.0% on good days, near flat on chop days, small losses on bad days.
“How much profit is good in intraday trading?” If your weekly P&L shows positive expectancy with a max drawdown you can stomach, that’s good. Absolute percentages vary widely by strategy and costs.

Expectancy: the math behind consistency

Formula:
Expectancy (per trade) = (Win% × Avg Win) − (Loss% × Avg Loss)

Example

Win rate = 45%
Avg win = +1.8R
Avg loss = −1.0R
Expectancy = (0.45 × 1.8) − (0.55 × 1.0) = 0.26R/trade

Trade 8 times/week → expected +2.1R/week (before costs). With ₹500 risk/trade, that’s ~₹1,050/week. Scale only when your sample size is large and stable.

Costs matter (a lot)

Your average profit in intraday trading is net of costs: brokerage, taxes, slippage, and spreads. Avoid overtrading low-quality setups just to be “active.”

Example: If your broker charges ~₹20/order and round-trip taxes/fees come to ~0.03–0.07% per side (varies by segment and state), churning 20 small trades can eat your day’s edge. Trade fewer, higher-quality setups.

Common mistakes that kill profits

No stop-loss → one big loss wipes a month of gains.
Oversizing → emotions spike; you break rules.
Chasing breakouts far from levels → poor R:R and quick reversals.
Averaging losers → turns small mistakes into disasters.
System hopping → no setup gets enough reps to gain skill.
Ignoring the market regime → range strategies fail in trend days (and vice versa).
Trading the news blindly → initial move fades; you get trapped.
Trading bored → low-A+ setups, death by a thousand fees.

5) India Notes: Costs, Taxes & Compliance (Quick Primer)

Brokerage & fees: Discount brokers often charge flat per-order fees in equities; futures/options differ. Always check your broker’s latest schedule.
Leverage/margin: India has peak margin rules; intraday leverage is limited relative to pre-2021 levels. Verify current policies with your broker.
Taxes:
- Intraday equity (non-delivery) is typically treated as speculative business income.
- Futures & options are generally non-speculative business income.
- You may need to maintain books of accounts and file under the appropriate ITR.
- Consider audit thresholds, turnover calculation methods, and advance tax if applicable.
- Consult a tax professional for specifics to your situation.

Bottom line: Factor all costs and taxes into your expected returns. Your “how much profit in intraday trading” question must be answered after these deductions.

6) Resources: Books, PDFs & Learning Paths

Book: How to Make Money in Intraday Trading (Short Review)

A widely read India-focused book (author: Ashwani Gujral) that emphasizes trend alignment, pattern recognition, and the psychology crucial for day trading.
What you’ll learn:

Recognizing high-probability setups in Indian equities.
Discipline and routines for consistent execution.
Practical examples with charts.

Who it’s for: Beginners to intermediates who want a structured framework and India-centric examples.

Free Resources & PDFs

You’ll find many so-called “how to make money in intraday trading pdf free” downloads floating around. Be careful with pirated copies and outdated material. Safer options:

Broker education portals (strategy basics, platform tutorials).
Exchange modules (risk management, derivatives basics).
Open-source backtesting notebooks (for coding-inclined).
YouTube channels with long-form, rules-first lessons; avoid hype.

Tools to Accelerate Learning

Paper trading & replay: Practice ORB, VWAP, and pullbacks without risking money.
Screeners: Pre-market gappers, unusual volume, top intraday movers.
Charting: Save templates (20/50 EMA, VWAP, ATR, RSI).
Journaling apps: Track setup → result → notes → screenshot.
Checklists: Prevent impulsive trades.

7) Action Plan: Start Small, Build Consistency

Here’s a starter playbook you can implement this week.

Daily Routine (30–60 minutes total)

Pre-market (15–20 min)

Pick 5–10 liquid stocks with catalysts.
Mark key levels: previous day high/low, pre-market high/low, gaps.
Decide your primary setup (e.g., ORB) and risk per trade.

During market (1–2 high-quality trades)

Wait for your setup only.
Place entry + stop together; set alerts for targets.
If daily loss cap hits, stop trading.

Post-market (10–15 min)

Journal: screenshot, emotions, rule adherence, what to improve.
Update stats: win rate, average R, max adverse excursion.

Intraday Trading Risk Card (print this)

Max risk/trade: 0.5%
Daily stop: 2R
Max trades/day: 3 (unless first is +2R, then you may take a 4th)
Only trade: Trend + Level + Signal + Volume (need all 4)
No averaging losers. Ever.

FAQs

Q: How to make money in intraday trading as a beginner?
A: Pick one simple setup (e.g., ORB or VWAP pullback), risk ≤0.5% per trade, use hard stop-loss, and take 1–2 quality trades/day. Journal daily.

Q: How much profit is good in intraday trading?
A: If you’re net positive with controlled drawdowns and expectancy > 0 after costs, you’re doing well. Many aim for 0.5–1.0% on good days; not every day will be green.

Q: What is the average profit in intraday trading?
A: There’s no universal average. It depends on your expectancy, frequency, and costs. Focus on R-multiples and consistency over rupee targets.

Q: How many people make profit in intraday trading?
A: A minority sustain profits long term. Most lose due to oversizing, no stops, and emotional trades. Treat it as a skill-building business, not a lottery.

Q: What’s the minimum profit in intraday trading I should target?
A: Think in R, not rupees. A 1–1.5R take-profit maintains positive expectancy even with modest win rates.

Worked Examples (Numbers You Can Copy)

Example 1: Breakout Trade (Equity, India)

Capital: ₹100,000
Risk/trade (0.5%): ₹500
Stock: Liquid NIFTY50 name @ ₹400
Setup: ORB long above ₹404 (opening range high)
Stop: ₹402 (₹2 risk)
Position size: ₹500/₹2 = 250 shares
Target @ 2R: ₹408 (₹4 reward)
Gross P&L: ₹4 × 250 = ₹1,000 (ignore costs for example)
Net: Subtract fees/taxes → focus on picking fewer A+ trades.

Example 2: Weekly Expectancy

Trades: 8
Win rate: 50%
Avg win: +1.7R, Avg loss: −1.0R
Net R: (4 × 1.7) − (4 × 1.0) = +2.8R
With ₹500 risk/trade → +₹1,400/week (before costs). Stable? Scale gradually.

Stock Market Intraday Tips (Quick Hits)

Trade with the trend; counter-trend requires experience.
Wait for pullbacks instead of chasing.
Size by stop distance; don’t make stops fit your position.
Avoid first 3 minutes unless you have a rules-based opening strategy.
News days: Start smaller—volatility can fake out signals.
Record your screen (if possible) to review entries/exits.
Protect capital first; profits follow process.

Final Word: Build Skill, Not Hype

How to make good profit in intraday trading is not about secret indicators; it’s about repeatable edges, risk control, and emotional discipline. If you:

Pick liquid names,
Use hard stop-loss and sane sizing,
Trade one clean setup at a time, and
Journal & iterate weekly,
you’ll be far ahead of most.

Your next step:

Choose one strategy above (e.g., ORB or VWAP pullback).
Define your risk card and daily routine.
Paper trade 20 sessions, then go live with half-size for 20 more.
Track results; scale only when the data says so.

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