Is Intraday Trading Profitable?

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Is Intraday Trading Profitable?

The most common question that a beginner or stock market enthusiast will ask is whether intraday trading is profitable or not.

We, in general, will continuously wander and think about the gains that the stock market can generate.

How intraday trading is considered?

Intraday trading is considered to be very risky because it has a narrow trading window, quick decision-making, and a highly volatile market.

But there are also a lot of traders who have made millions of fortunes with intraday trading.

Is Intraday Trading Profitable in India?

It is claimed by a lot of people who start trading in the intraday segment that they leave trading very early.

The main reason behind this is a lack of proper understanding of the market.

This can be curbed with the help of adequate research and knowledge, which can take the success percent from 3-4% to at least 6-7%.

Intraday trading can be done easily in the following ways:

Is Intraday Trading Profitable in India

If you have ever wondered how to make a profit in intraday trading, then there are some of the main factors that can help you earn profits from as low as 2% to as high as 60%.

The following are the main factors that will affect your profit criteria:

main factors that will affect your profit criteria

How to make a profit from intraday trading?

Even though there are risks associated with intraday trading, it is still possible to make significant profits.

It is always said that the higher the risk, the greater the reward.

But there is a different platform that will show that the intraday trading will need a break so that the chances of loss are almost negligible.

The following are the main points that an intraday trader should consider to make good profits:

main points that an intraday trader should consider to make good profits

Know your goals:

It is very important for intraday traders to be very clear about their goals.

They should also be very clear about the target price of the stock, as well as the risk that they are willing to take throughout the trading journey.

It is a true fact that the traders will get excited and will wait to gain more, even without considering the losses.

When it is a matter of intraday trading, it is also very necessary to stay away from greed.

This will reduce the significant gains and will cause you to lose the profits that you have earned.

Set a target for yourself and then exit by following the concept of stop-loss.

A stop-loss will define your risk and will also minimize the losses.

Also Read: Is Options Trading Profitable?

Selection of stocks:

The most important question is how to select the stocks for intraday trading, or in short, how to filter the most volatile stocks for the day.

If a particular stock that you have selected does not show any movement, then there are no chances of gaining profits.

You should consider choosing liquid stocks instead because this will allow you to have a proper entry and exit.

You can also choose the stocks that are falling in a particular sector after looking at the market trend.

Going with the market trend will also fetch you good profits in intraday trading.

How to Select Stocks for Intraday Trading?

Technical Analysis:

For the stock selection process, the most important step is the technical analysis.

With the help of technical analysis and proper research, you can increase your chances of profiting in the stock market.

Technical analysis will also tell you which stock to pick with the right entry and exit points.

In addition to that, they will give you signals so that you may know the right opportunities for a particular stock.

Therefore, you will have to keep an eye on some of the technical indicators like RSI, Moving Averages, MACD, and ADX.

Learn More About Technical Analysis & Top 5 Intraday Trading Indicators

Choosing the right trading platform:

The price fluctuations in the market will happen within seconds, and intraday trading is about making the best use of the same.

So, to execute your orders properly, you will need the right trading platform.

You will have to select a platform that will offer you seamless, effective, and fast services so that you can execute the order at the price that you want.

The trading platform should be such that it will give you access to the intraday research tips that will in turn fetch you good profits.

Must Know: Best Intraday Software in India

Avail the benefits of margin:

The main benefit that the intraday trader has is the benefit of leverage.

The intraday trader can avail of the facility of margin from the stockbroker, which will multiply the profits depending upon the script you choose.

Let us have an example to understand the concept of margin: if you have Rs. 20,000 in your account, then you can avail the margin of up to 5 times. So, with a margin of 5x from the stock broker, you can trade with an amount of Rs. 100,000.

Now consider the stock increased by 8% in its value, so with the initial amount you would have earned a profit of RS. 1600. However, with the margin facility, the profit can be RS. 8000.

How do you calculate the intraday profit?

The main and biggest advantage of intraday trading is higher returns.

To make good profits, you will have to consider the above factors.

Following that, the question of how to calculate intraday trading profit arises.

For example, if you buy the stock for Rs. 15,000 and then sell it at Rs. 21,000 on the same day, then your overall profit for the day is Rs. 6000.

Also Read: How to Make Profits in Intraday Trading?

But when you are calculating the intraday profit, then you will also have to keep in mind that you will have to pay other charges, such as:

Intraday Trading Charges

From the profit figure of Rs. 6000, all the above charges will be deducted, and then you will arrive at your final profit.

Highest intraday trading profit in India:

Intraday trading is profitable, but the question is what the highest intraday trading profit in India is.

The profit of an intraday trade is highly dependent on the segment you choose.

You can trade in equities, derivatives, and the commodity segment.

People who have an idea of how the stock market works also have an idea of compounding growth.

If you consider that you are earning a 5-6% return every day, then you can still manage to earn higher profits.

It might sound impossible, but with the right direction, you can definitely make good profits.

Growth can never be consistent, so a particular stock that yielded you a return of 20% on a particular day might be as low as 2% on the next day.

But in short, intraday trading will fetch you huge returns.

The main part of the intraday trading profit is that it will be credited to your account in T+1 days and then you can access it.

Also Read: How to Trade Intraday in Indian Stock Market?


I hope that the above blog has given you a clear understanding that intraday trading is highly profitable after using all the above parameters.

Frequently Asked Questions (FAQs)

Answer: The stock for intraday trading should be highly volatile with the best liquidity factor.
Answer: There is no fixed amount but it can be as low as Rs 1000 and as high as Rs 500,000. But it is important to select the correct stock broker.
Answer: Intraday trading is the most profitable.
Answer: Yes, short-selling is possible for intraday trading.
Answer: The main reason for this is poor risk management as well as the absence of stop-loss.
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