Intraday Trading Rules


Intraday trading is risky compared to investing in a regular stock market. In intraday trading, with the high volatility in stock markets, most traders only make money if they are experienced. To manage the appropriate risks during intraday trading, the Convention says that a trader may not account for more than 2% of his total trading capital on one transaction. Understanding the basics of this form of trading to avoid losses is particularly important for an inexperienced trader. 

To learn about the most basic and valuable rules of intraday rules, follow the article below.

Basic Intraday Trading Rules

If you have a clear grasp of the essence of intraday trading, then it is possible to follow some simple rules that will allow you to succeed as an intraday trader.

1. Do Not Trade in an Unstable Market.

It’s the cardinal rule. It is best to exercise Intraday Trade if the direction of the market and its momentum are known. In this case, you would have to spend more time in order to trigger the stop loss. It’s important to understand that a volatile market can be unpredictable in both the best and worst of ways. Investors may be encouraged to take risks and chances in volatile markets, but they may be disappointed in their predictions of returns. The volatility in itself is erratic, and stocks may appear bright, only to turn into a disaster of dramatic proportions that even intelligent investors wouldn’t have expected.

2. It’s All About Protecting the Capital in Intraday Trading. 

The first thing to focus on is the total and per-trade amount of loss that you are willing to take. The intraday profit will follow as soon as you can protect capital from depletion beyond a certain point.

3. If You Don’t Have a Stop Loss, Never Trade in Intraday. 

You must remember that in most trades, the loss of stops is necessary, but for intraday exchange, it’s a necessity. With no-stop losses, you may hold positions that are prone to uncontrollable MTM loss.

4. Avoid Extending Your Trading Margin. 

Make sure your worst-case loss is taken into account when you leverage yourself on the margins.

5. If You’re Convinced, Avoid the Lure of Tips and Just Trade. 

Research analysts and market experts are still in short supply. Most of them are simply pretenders for the throne. Use a pinch of salt to treat these ideas. Before trading on the open market, you have no choice but to do your research. That’s best for the whole time!

6.At the End of Each Day, Record Your Successes and Losses and Evaluate Them. 

It’s a little pedestrian and clerical, but it’s important. Take a look at the trades that went wrong and the ones that went right. To analyse what you’ve done wrong and what you could have done better, keep a scrapbook. Becoming a better trader will be really helpful to you.

7. It Is a Cardinal Sin in Intraday Trading to Exaggerate Your Trades. 

It’s common to buy more stock when it’s corrected. There are two reasons why averaging is wrong. First of all, there’s a risk that you’ll be wrong twice. Secondly, you can increase your exposure more than justified to a particular stock. This would raise the risk to your capital even more.

8. You Know the Companies You’re Dealing With, Their Business, Technical Level, Etc. 

It’s not just for the fundamental analysts. There is a need for intraday traders to have an idea of what the company does and its performance. It may be a good investment if you know the fundamentals of the company and how it’s evolving towards growth. A company’s announcements can also provide you with information about whether to trade or stay put. They can tell you if a stock is better suited for day trading than for long-term keeping.

9. You Should Be Aware of the Overnight Risk When You’re an Intraday Trader. 

Stay on your knitting if you’re an intraday trader. Overnight positions carry the overnight risk, and your intraday trader capital may not be able to take that kind of risk. Be cautious.

10. Don’t Be Wasting Your Time on Stock Highs and Lows, They Don’t Matter. 

No one has consistently caught the top and bottom of markets, whether you’re a daily trader or an investor. It’s not just impossible but also useless. This incremental gain is limited, so don’t obsess about buying at the bottom and selling at the top.


Intraday trading has been a popular choice amongst new investors who are eager to benefit quickly but wish not to wait long. It is possible to make a good profit from intraday trading with the correct techniques. However, there are fundamentally different tools and methods in intraday trading as compared to long-term investing. There is a high degree of market knowledge necessary for intraday trading, and the error margin is very low because trades are made several hours in advance. Thus, the selection of stocks must be precise. To do hassle-free intraday trading, go ahead with a stock trading app like BlinkX.

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