How to Place and Modify Stop-Loss for Intraday Trades?

Confused about the Capital Gain Statement? This video explains what an equity capital gain statement is, how it helps in tax filing, and how to download it step-by-step via the ICICI Direct app and website. Stay tax-ready and on top of your investments with this simple guide!

A contract note is a legal document that breaks down your trades, prices, brokerage, and taxes. Learn how to read it, track hidden charges, and download both your contract note and fund statement from ICICI Direct in just a few clicks.

Learn how to update your mobile number and email ID on the ICICI Direct app and website in just a few steps. Follow this quick guide for a hassle-free contact detail update using Aadhaar e-sign.

This quick guide walks you through the re-KYC process on ICICI Direct in just a few easy steps—from DigiLocker login to live photo capture and e-signing. No stress, no confusion—just everything you need to get it done smoothly!

Ran out of funds while trading? Don’t sell your shares—pledge them! In this video, learn how to use Shares as Margin (SAM) on the ICICI Direct website to unlock instant trading limits using your existing holdings.

Watch this video to learn the complete step-by-step process – from pledging, checking status, unpledging, to reallocating limits across segments on the ICICI Direct platform.

Watch this video to learn how to easily reattempt your rejected SIP transaction on ICICI Direct with the new payment reattempt feature. Follow simple steps and get your SIP back on track.

Ever opened your demat account and wondered why some shares aren’t tradable even though they’re credited? Watch  this quick video to learn why it happens and how to manually allocate those shares in just a few clicks.

How does the IVR scam work and why is it so dangerous? Watch this short video for a detailed explanation!

Ready to conquer intraday trading but don’t know where to start? Watch this video to learn about 5 powerful strategies that help traders make smarter decisions

Did you know that corporate actions such as dividends, bonuses, splits, and rights issues can affect your MTF position? But before we have a look at that, let’s go back to the basics of the Margin Trading Facility (MTF).

MTF Basics

When you buy stocks using MTF, you pay only a part of the total transactional value, while the rest is funded by ICICIdirect. It’s important to note that the stocks purchased under MTF are held in your Demat account but remain under the pledge (PL) status since you have not fully paid for these positions.

Now that you understand the basics, let’s explore how corporate actions affect your MTF positions.

Effect of Corporate Actions on MTF Positions

1. Dividends

   You are eligible to receive the full amount of the dividend as long as you hold the stock on the record date.

2. Bonus, Splits, Mergers, or De-mergers

   For corporate actions such as bonuses, splits, mergers, or de-mergers, you must convert your MTF positions to delivery by paying the full amount before the record date. You will be informed about the last date until which you can hold your stock under MTF. After this date, your positions will automatically be squared off.

Rights Issues

You are eligible for rights issues provided you convert your positions from MTF to delivery before the record date.

Have you received messages about guaranteed IPOs or high stock returns? Fraudsters use these tactics to deceive investors. Watch this video that will help you spot scams and stay safe

Investing can be complicated, but what if you could simplify it all with just one click? Watch this video to learn how to invest in ICICI Direct's One-Click Equity Baskets to invest in trending market themes in just a few clicks!

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Watch this short video to learn how to convert your intraday positions to delivery on ICICI Direct

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Watch this video to learn how to trade butterfly strategy with Breeze API on ICICI Direct

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In this video, learn how to buy/sell an Options contract by following simple and easy steps on the ICICI Direct app

In this video, learn how to buy/sell an Options contract by following simple and easy steps on the ICICI Direct app

Watch this short video to learn how to check your open position on ICICI Direct App easily

It is humanly impossible to be 100% correct in all trades, irrespective of how thoroughly we research stock markets. This is why we must think about limiting the risk undertaken for each trade. Moreover, knowing where to draw the line helps you refrain from overburdening yourself.

In that case, what should be your risk tolerance? Let's find out. The most commonly recommended rule by experts is the one percent rule. This means that a stock trader must not lose more than one percent of his total position value in a single trade. So, if your account holds positions worth one lakh, your maximum loss per trade should be within one thousand. That's why you should always place an appropriate stop-loss on your trades. You should adjust your position size as per the loss amount predetermined by you. Position sizing involves calculating the number of shares, lots, or contracts you will trade based on your predetermined risk per trade. For example, if you are buying a particular share at rupees 100 and keep a stop-loss at rupees 95, your loss per trade is 5, and hence your position size will be 1000 divided by 5, which is 200 shares.

How much risk you take depends on how comfortable you are with the potential loss of capital. This is why some traders also push their risk tolerance to two percent. But how does this slight change make a difference? Let's say A has a position of rupees 50,000, whereas B has rupees 1 lakh. A uses a threshold of two percent, whereas B uses one percent. This effectively means that both A and B will lose 1000 per trade, despite the sizeable difference in their account balance. As both have different levels of risk tolerance or risk appetite.

While mentioning risk tolerance, it is also important to mention emotional control. Greed and fear are the two emotions that you have to deal with strongly. You should always exit the trade when your maximum affordable loss has been reached. Holding on to a loss-making trade with the hope of recovery can deepen your losses. A risk management strategy in stock trading is as important as a sail is to a boat. If the price moves opposite to your expectations, you should recalibrate and exit your position without much delay. It's generally recommended to avoid risking a significant portion of your total capital on a single trade. Diversification is key to risk management. Consider allocating a fraction of your overall capital per trade, such as one percent to five percent, to ensure that losses on individual trades do not severely impact your portfolio.

Watch this video to learn how to use the readymade option strategies of Breeze API

Investing in the stock market is a good way to earn money but it is risky! In the same way, intraday trading is also subject to the same rules. However, if you want to minimize the risk of suffering a large loss, then you can opt for a good exit strategy or a stop loss order. However, before we go into how a stop loss works, let us first take a closer look at what a stop loss is.

The purpose of this trading strategy is to help intraday traders limit the losses they incur as a result of their trades. So, it works as an advance order to set a command to exit your position if the share price reaches a certain level. Think of it as automating the closing of your open positions before you find yourself in a tight spot. You will still be aware that for stock marketers two aspects are very crucial to them; these are making profits and protecting capital.

Three different methods can be used in determining a stop-loss strategy, and they are:

1. Support and resistance levels:

   Stock close and highs are defined by these technical indicators.

2. Using other technical indicators:

   In addition to the support and resistance levels, you can also set the level by using either daily or weekly moving averages as a guide.

3. Percentage:

   As far as your stop loss level is concerned you can choose to set it at a percentage of loss that you can afford.

Besides these three strategies there is also a trailing stop loss strategy often used by long-term investors which can help you protect your profit. All that needs to be done is to set a stop loss limit at a level where your profits will be protected at all times. So guys, I really hope that one of these strategies will be able to help you in some way make sure to invest wisely and also be sure to set up your own stop-loss strategy so that you can minimize your losses.

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What is Intra-day trading?

Intraday trading, is the act of buying and selling the stocks within the same day. Traders buy and sell stocks during regular market hours and close their open positions before the market closes.

How to pick stocks for Intra-day trading? (5 Simple Strategies)

1. Trade in liquid stocks

   Liquid stocks are traded in large volumes and allow you to enter and exit positions as needed.

2. Pick stocks with medium volatility

   Pick stocks with a reasonable amount of movement within a day but use the stoploss feature to minimise potential losses.

3. Buy stocks that you understand

   Trade in stocks that you have followed, tracked and know about. Avoid trade in stocks that you have no knowledge of; or which are manipulated or move based on rumours.

4. Avoid penny stocks

   Avoid trading in stocks which are available at very low prices i.e. in single digit prices.

5. Make focused investment based on research

   Don’t trade in too many stocks. Do your research and focus only on a few stocks that you can track and review easily.

Pre-requisites for intra-day trading

Have a trading or demat account and a bank account.

Understanding the difference between a market order and a limit order can give you an advantage.