There was a time when the popular belief in India was that trading, especially in stocks, was a high-risk game. It was considered best to leave trading to industry insiders and instead, seek other forms of investment. In today’s age, however, technology has given trading a lot of momentum in the country.
With a fundamental understanding of financial markets, anyone can start reaping rewards from the right trading practices. Beginners to the trading game in India typically start their trading experience with intraday trading.
What is Intraday Trading in India?
The term ‘intraday’ means ‘within a day’. Intraday trading refers to the system of buying or selling of commodities, that is trading, within the time span of a single day. As opposed to long-term investments, intraday trading means that the trader squares-off all his trades by the time the market closes. Intraday traders are generally looking to make profits, not invest.
Until the recent popularity of trading accounts in India, intraday trading was considered to be a practice best exercised by professionals, banks and other institutions. However, today intraday trading is practiced by traders of all backgrounds.
Intraday trading in India is typically used to refer to trading in stocks, that is in the equity market. However, intraday trading in other forms of securities, such as commodities or currency, are also lucrative options preferred by many.
How to Start Intraday Trading In India
With the basics of intraday trading in place, here are the details of the process to get started with intraday trading:
– First, it is essential to develop a rough intraday trading With time, the trader will gain enough experience to refine it, but it is still recommended to formulate a rough strategy at the very outset.
– Then, the trader must determine how much capital he is willing to invest in his intraday trading. Every financial market has its own share of entry capital requirement, so he must plan and proceed accordingly.
– Practice your intraday trading strategies with a demo or trial trading account. These virtual trading accounts offer the option of trying out your strategies with virtual money. They are ideal for giving a new trader a fair idea of how to get started. With plenty of scope for trial and error, you will develop the expertise necessary to conduct intraday trading live.
– Open a trading and demat account. If you are already investing in the stock market, it is best to open a separate account dedicated to intraday trading.
– Find a brokerage firm that can connect you to the relevant exchanges, such as the Bombay Stock Exchange or the National Stock Exchange, and start trading. One of the most important parts of intraday trading in India is to get connected with a reliable brokerage firm.
Choosing Your Trading Broker in India
The right brokerage firm can be the crucial difference between having a smooth intraday experience and an unfavourable one. Here are the factors you should consider before selecting a trading broker in India:
– Speed: As an intraday broker, your daily profits depend on how quickly your trades get executed. Therefore, the ideal brokerage firm for intraday trading must provide a swift, smooth trading experience.
– Fees and commissions: In exchange for their services of connecting a trader to the desired market, brokers charge a fee or commission. Therefore, it is important to find a broker that is worth their value and offers competitive fees and commissions.
– Support: More than any other type of traders, it is important for intraday tradersto stay connected with their trades throughout the day. This helps them track every little opportunity to trade that arises. If there is a disconnection, or even a temporary glitch, it can result in loss. Therefore, the right brokerage firm is one that provides traders with ample support during trading issues.
– Guidance: There is a wide variety of information available on the internet regarding the topic of trading. However, your brokerage firm should be an authority on the subject. An ideal brokerage firm provides traders with insights based on research.
While intraday trading was previously uncommon, technology has allowed Indians to venture into this trading practice today. With some fundamental knowledge and the right strategies, traders in India can start intraday trading by opening a trading account. Most importantly, it is important to find a reliable brokerage firm to support you in your trading venture.
Angel One provides traders with a variety of features to help them get started with intraday trading in India. It offers a technology-enabled DEMAT and trading account as well as technical and fundamental research guidance. Moreover, it offers a trial account for beginner intraday traders to practice their strategies.