Can You Make Money in Intraday Trading?

Intraday trading, commonly known as day trading, involves buying and selling financial instruments within the same trading day.

Unlike long-term investing or swing trading, intraday trading focuses on quick, frequent trades to capitalize on small price movements.

This form of trading attracts many due to its promise of fast profits and the dynamic nature of markets.

However, the central question remains: can you realistically make money in intraday trading?

In this blog, I have explained the realities, opportunities, challenges, and strategies around intraday trading profitability, offering a balanced view for beginners and seasoned traders alike.

Understanding Intraday Trading

Intraday trading means entering and exiting positions within the same day. Traders use various intraday time frames like 5-minute, 15-minute, or hourly charts to analyze price movements. The key is to avoid holding stocks overnight to mitigate risks from after-hours events.

This style leverages margin offered by brokers, allowing traders to control larger positions with a smaller amount of capital. Technical analysis is vital here; traders rely on charts, price patterns, and indicators to time their trades effectively.

A typical intraday trader starts early with pre-market scans, identifies potential setups, executes trades during market hours, and reviews performance post-market close.

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Profitability in Intraday Trading

The reality of making money in intraday trading is harsh. Statistics suggest that only a small fraction of traders—often fewer than 10 to 15 percent—are consistently profitable.

Intraday trading can seem straightforward on paper, but it demands skill, emotional discipline, and risk management to succeed.

Despite the risks, many are drawn to intraday trading for the freedom it offers, the avoidance of overnight risk, and the possibility of quick gains.

Profitability depends on several factors: expertise in technical and fundamental analysis, strict risk control, consistent discipline, and having adequate capital and the right trading tools.

For example, a trader who aims for small, consistent profits daily—like making a few percent per trade—typically fares better than one chasing large, unpredictable gains. Such discipline can support a moderate but sustainable income over time.

The Pros of Intraday Trading

Intraday trading offers distinct advantages for those who master it. Profits can be made quickly, sometimes within minutes or hours, by capitalizing on small price movements. Scalp traders often exploit ₹2–₹3 price moves on heavily traded stocks, locking in rapid gains.

Closing all positions by the market close eliminates overnight exposure to unexpected news or global events that can cause gaps in price. This reduces risk significantly compared to overnight investing.

Additionally, intraday trading focuses on highly liquid instruments such as major index stocks or futures, ensuring trades can be entered and exited easily without large price impacts.

Brokers also provide leverage for intraday trades, which amplifies potential gains—but also potential losses—making it essential to manage risk carefully.

The Cons of Intraday Trading

However, the drawbacks are significant. Intraday trading is inherently stressful due to the need for constant market monitoring and quick decisions.

Emotional pressure often leads to fatigue and poor choices, which affect both health and trading results.

The failure rate is high, partly because trading costs like commissions and slippage eat into profits, and poor emotional control leads to frequent losses.

Without sufficient market volatility, traders may find few opportunities to profit, or risk making poor trades based on weak signals.

Overtrading and excessive use of leverage are common pitfalls, especially for beginners who chase losses and take unnecessary risks. A single bad trade can quickly erase multiple previous gains, highlighting the risk of this high-speed trading style.

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Skills Needed to Make Money in Intraday Trading

Success in intraday trading requires a solid skill set. Technical analysis lies at the core—knowing how to read charts, recognize patterns, and use indicators like moving averages, RSI, MACD, and Bollinger Bands helps identify viable trade setups.

Risk management is paramount. This includes defining acceptable risk per trade (often 1–2 percent of total capital), setting stop losses, and maintaining a favorable risk-to-reward ratio to ensure winners outweigh losers in value.

Discipline and patience distinguish profitable traders. Avoiding impulsive trades driven by fear or greed, and sticking to predefined strategies, fosters long-term success. Keeping a trading journal to log trades and outcomes also helps refine strategies based on experience and data.

Building a Profitable Intraday Strategy

Choosing the right stocks is the first step for intraday success. Traders focus on highly liquid, volatile stocks influenced by earnings announcements, macroeconomic data, or sectoral news.

Top Nifty 50 stocks often appear on many day traders’ watchlists due to their volume and volatility.

Entry rules should be clear, based on signals such as breakouts, pullbacks, or indicator confirmations. Exit plans involve profit targets and stop loss levels set before trade execution to avoid emotional decision-making.

Traders monitor different intraday sessions, especially the opening hour (9:15 to 10:30 AM) and closing hour (2:30 to 3:15 PM), when volume and volatility typically increase. It is important to backtest strategies on historical data or practice in paper trading before risking real money.

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Managing Emotions and Psychology

Emotional control is crucial in intraday trading. Common mistakes include holding onto losing positions due to hope, exiting winners prematurely out of fear, and revenge trading to recover losses quickly—each of which sabotages profitability.

Building a disciplined mindset involves strict rule adherence, accepting losses as part of the game, and maintaining realistic expectations.

Successful traders develop consistent routines, use journals to review trades, and persistently learn from market behavior and their mistakes.

Tools and Platforms for Intraday Trading

Modern traders benefit from advanced trading platforms offering real-time quotes, interactive charts, and alerts. Popular Indian platforms include Zerodha Kite, Upstox, Angel One, and others, providing low latency execution critical for day trading.

Charting tools like TradingView or Chartink enhance analysis capabilities with customizable indicators and screeners. Staying updated on market news and economic data through reliable sources ensures traders respond timely to market-moving events.

Real Statistics and Myths

Common myths about intraday trading include beliefs that it offers quick riches to anyone and that higher trade frequency guarantees bigger profits.

The truth is that consistent profits come from skillful, disciplined trading, and overtrading often leads to losses due to costs.

Many retail traders lose money due to lack of proper education and emotional control. A successful trader prioritizes capital preservation over rapid gains, realizing the long-term nature of skill development and profitability.

Comparing Intraday Trading vs Long-Term Investing

Criteria	Intraday Trading	Long-Term Investing
Holding Period	Minutes to hours	Months to years
Objective	Short-term gains	Wealth accumulation
Risk	High, amplified by leverage	Moderate to low
Skill Required	Technical analysis, fast decisions	Fundamental analysis, patience
Capital Requirement	Margin-based, smaller initial	Larger capital for compounding
Tax Treatment	Short-term capital gains (higher rates)	Long-term capital gains (lower rates)

While intraday trading can supplement income, long-term investing generally provides more reliable wealth growth with lower stress and risk.

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How Much Can You Realistically Earn?

The earning potential varies widely. For example, a trader with ₹1 lakh capital aiming for a 1% daily return might target approximately ₹1,000 daily gains. However, brokerage fees, slippage, and occasional losses reduce net profits.

Consistently achieving 10% monthly returns requires advanced skill and discipline, making it difficult for most traders. Larger capital can limit percentage returns due to market impact and liquidity constraints, leading to diminishing returns over time.

Focusing on small, consistent gains and capital preservation forms the foundation of sustainable profitability rather than chasing big wins.

Tips to Increase Chances of Success

Trade only the most liquid and volatile instruments to ensure smooth executions.
Set a strict daily loss limit, typically 2–3%, to protect capital.
Employ stop losses and trailing stops to manage risk efficiently.
Avoid emotional, rumor-driven trades and stick to your plan.
Continuously learn and backtest strategies.
Never overleverage; use margin responsibly.

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Should You Try Intraday Trading?

Intraday trading suits those who possess strong analytical skills, emotional control, and the ability to dedicate consistent time to market watching and learning. It is not ideal for individuals looking for passive income or quick financial fixes.

Alternative approaches include swing trading or investing in mutual funds and ETFs, which offer lower risk and less time commitment, making them appropriate for conservative or part-time traders.

Final Verdict

Yes, you can make money in intraday trading, but it is not easy or guaranteed. Success requires thorough knowledge, disciplined risk management, and considerable experience. Most beginners face losses initially due to emotional decisions and inadequate preparation.

Consistent profitability is achievable but rare, rewarding those who treat intraday trading as a skill-based business rather than gambling. Discipline, patience, and a tested strategy are key to unlocking intraday trading’s potential.

Intraday trading rewards the disciplined, not the lucky.

FAQs

1. Is intraday trading suitable for beginners?

Intraday trading can be challenging for beginners due to its fast pace and high risk. It requires a good understanding of technical analysis, risk management, and strong emotional control. Beginners are advised to start with a demo account or paper trading before risking real capital.

2. How much capital do I need to start intraday trading?

The required capital varies based on the broker’s margin policies and the stocks chosen. Generally, a minimum of ₹50,000 to ₹1 lakh is recommended to manage trades effectively and absorb fluctuations while maintaining proper risk controls.

3. Can intraday trading provide a consistent monthly income?

While some skilled traders achieve consistent monthly profits, most beginners and casual traders face losses. Consistency depends on experience, discipline, strategy, and effective risk management. It should not be relied upon as a guaranteed income source initially.

4. What are the best stocks for intraday trading?

The best stocks for intraday trading are usually those with high liquidity and volatility, such as popular index stocks in Nifty 50 or Bank Nifty. These stocks allow easy entry and exit without large price impacts.

5. How important is risk management in intraday trading?

Risk management is crucial. Using stop losses, setting strict daily loss limits, and managing position sizes help protect trading capital and prevent large losses. Successful intraday traders prioritize preserving capital over chasing every market move.