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10 Steps to being profitable in Intraday Trading

Some traders view intraday trading as highly complicated and risky. A few others have learned what it takes to be a successful trader through positive thinking and discipline. And a sound trading strategy that determines an appropriate risk-reward ratio.

So, if you're looking to make intraday trading a profitable endeavour, it’s time to leave the stress behind and follow the right steps. So, while there is no one-size-fits-approach when trading in the stock market, certain rules and tips can help improve your chances.

Here is a 10-step guide that can help you achieve profitable trading:

1. Create a rule book

Before you delve into the world of intraday trading, create a rule book for yourself. This should set the guidelines concerning how much capital you are willing to invest, losses you can stomach, your risk-reward ratio, etc. You may also want to narrow down on specific industries or sectors for a more profitable trading experience.

Additional read: Getting Started with Intraday Trading

2. Choose the right stocks

Avoid investing based on random tips from unreliable or unverified sources. Instead, look to studying and researching the stocks you want to invest in. To start with, you may want to bet on some blue-chip liquid stocks with high-volume trades. This will help you square off your position more efficiently without undermining your situation.

3.  Trade in limited stocks

Diversification is great for long-term investments. However, when it comes to intraday trading, it is better to stick to a few stocks that you believe in and can monitor rather than opening too many positions.

4.  Set a stop loss level

An important rule to follow when engaging in intraday trading is to set a stop loss level for every trade. Doing so can ensure you plug your losses at a certain level without dipping further. In addition, it can help you protect your capital.

5.  Define a profit target

Do not let emotions overtake your decisions when trading in the stock market. Instead, define your own profit goals and if your stock has reached that level, exit the position and book your profit.

6.  Exit your positions at day end

When it comes to making profits in the financial markets, you require several skills. These include seeking suitable risk vehicles, entering positions at the right time and managing them astutely without panic or emotion. But more importantly, you need to know when to exit when the stock starts moving in other direction. It is not difficult to get out at the right time, but you need to closely observe price actions and follow stop loss.

Additional read: Things to Know While Doing Intraday Trading

7.  Sometimes, you may just want to sit back and ride it out

If market movements are too confusing for you to trade, you may want to take a step back and do nothing. Wait for better opportunities. You’d rather be confident of your trade than dip your feet in murky waters and suffer a large loss.

8.  Follow the trends

Some traders try to bet against the market, hoping they can clock in a big, fat profit if it goes well. But market trends and technical analysis exist for a reason. For one, trends indicate the direction in which stock prices are moving. So, do not attempt to outsmart the market. Instead, stick to the cues, and you are more likely to come out profitable.

9.  Don’t trade on emotion

Euphoric buying and panic selling are two common characteristics seen among novice traders. The idea is to keep emotions at bay when looking for profitable trading. Rather, trust your research and follow the technical indicators instead of reacting to how you feel in the moment.

10. Choose the right trading platform

Profitable trading in the stock market is only possible with the right tools. So, choose a trading platform that is easy to use, has different tools to help you with decision-making. To start trading open you demat account online.


There’s no magic trick that will ensure you make profits in the stock market. Instead, you have to be diligent, do your research and trade smartly. These tips can help smoothen out the complexities of intraday trading and lead you closer to a successful trading journey.

Disclaimer – ICICI Securities Ltd. (I-Sec). Registered office of I-Sec is at ICICI Securities Ltd. - ICICI Venture House, Appasaheb Marathe Marg, Prabhadevi, Mumbai - 400 025, India, Tel No : 022 - 6807 7100. I-Sec is a Member of National Stock Exchange of India Ltd (Member Code :07730), BSE Ltd (Member Code :103) and Member of Multi Commodity Exchange of India Ltd. (Member Code: 56250) and having SEBI registration no. INZ000183631. Name of the Compliance officer (broking): Mr. Anoop Goyal, Contact number: 022-40701000, E-mail address: complianceofficer@icicisecurities.com. Investment in securities market are subject to market risks, read all the related documents carefully before investing. The contents herein above shall not be considered as an invitation or persuasion to trade or invest.  I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon. The contents herein above are solely for informational purpose and may not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments or any other product. Investors should consult their financial advisers whether the product is suitable for them before taking any decision. The contents herein mentioned are solely for informational and educational purpose.

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