Intraday trading is a very fascinating word for new traders, it enables your book profit on the same day and sometimes within the few minutes. If you’re new to trading and would like to learn Intraday trading then this post is for you. In this post, I will not only help you learn Intraday trading but also teach you some thumb rules which will eventually help you save thousands of rupees. By the way, this post specifically covers how to do Intraday trading in Angel Broking.
But the important intraday trading rules I will be sharing with you are must to know for each and every trader who does day trading.
In Intraday Trading, also known as Day Trading, we buy a stock (or open a trade) and sell it (close it) on the same day either by booking profit or loss. This is a quick way in which you make profit or exit by predetermined stoploss.
I am big fan of Angel Broking app. It’s my favourite app when it comes to trading from mobile. So far, I have not seen any app close to Angel Broking app. Executing and closing trades are very easy. Advanced charts and tools help make profitable trades.
Click on the special link to open Angel Broking account and get free Demat account for one year and Zero brokerage for 30 days.
Let’s learn how to do intraday trading in Angel Broking app. Before that, I firmly suggest you read the following intraday rules that I have learned so far. I am sharing these simple but very effective rules with you to save you from making the mistakes that more than 90 percent new traders make (I was one of them).
Intraday trading rules
Do you know more than 90 percent new traders lost their entire capital within the first 3 months of their trading and then never dare to trade again?
Now, question for you, would you like to be one of them or would like to be counted in less 10 percent traders who actually make profit from trading?
Of course, your answer is you would like to be counted in 10 percent. Then learn and apply these intraday trading rules and before executing a trade recall them.
I assure you one day you will be thanked. I learned these rules by losing my money. I am sharing these with you for free, just to help you save yours.
- Never risk more than 5 percent of your capital on a single trade. Ideally stay between 2-5 percent risk range.
- Do not do more than 2-3 trades in a day. If you book lose on first then avoid doing the next trade.
- Never ever do revenge trading (to cover the losses).
- Always trade with a confirmed stop loss. In fact, your first step after executing an intraday trade should be placing a stop loss order. In share market, you don’t have control over profit but you can certainly decide how much you want loss in a trade.
- Before entering into a day trade, you should have a clear target at which you will close your positions and stop loss at which you will certainly exit and close your positions. Actually, it is a big problem. What new traders do is they exit from a trade very early when trade goes in their favour but they don’t exit timely when it goes against them.
- Always enter into trade in which you are getting good risk to reward ratio. Ideally 1:3 risk to reward ratio should be your target.
- Avoid impulse trading.
These are the important rules you should keep in mind while doing intraday. Yes, there are lot more but as a new trader you are supposed to strictly follow these. I assure you by following these rules, you will save thousands and remain in the market in long run.
In a separate post, we will cover this topic in detail. But for today let’s stick to the topic for which you landed on this page.
How to do intraday trading in Angel Broking
Watch this video tutorial to learn how to do intraday trading in Angel Broking. This is one of the best appreciated videos on my YouTube channel. Thousands of viewers have watched this video and learned how to do day trading in Angel Broking.
Watch the entire video very carefully and learn intraday trading. After watching this video, you would not need to watch another video. This video will clear your doubts.
I have explained how to place buy, sell, and stop loss orders. I have explained how you can earn by buying and selling a stock and also shared valuable intraday trading tips.
If you prefer reading then you are welcome to read the written instructions.
As a beginner intraday trader, always remember these 4 steps and never skip any:
- Enter into a trade.
- Place Stop Loss order to limit your losses.
- Exit the trade by booking profit; if it goes in your favour.
- Cancel the Stop Loss order.
How to earn by buying a stock in intraday?
As I mentioned, in intraday, you can earn by buying as well as selling a stock. If you think price will go up then you can place buy order to earn in intraday trading. On the other hand, if your think price will go down then you can place sell order to earn.
Let’s first learn how to earn in intraday trading in Angel Broking by buying a stock.
- Open Angel Broking app and touch search icon to search a stock in which you would like to do intraday trading. You will see two options for same stock; one from NSE and another from BSE. There is no difference, stock is same just it is listed on two different exchanges. I prefer NSE therefore I tapped on first result.
- Now if you think price is going up and it will continue doing the same (if you don’t know then learn technical analysis) then tap on Buy button to take advantage and earn by doing intraday.
- In Quantity field, enter the number of stocks you would like to trade, just like I entered 10.
- Next field is Price. In Price field, you have two options; Limit and Market.
- Limit Order: When you would like to buy at a decided price, you select Limit and enter the price. In this case, you order will be executed only if the price comes (equal to or less than, in case of buy order) entered price.
- Market Order: Market Order enables you buy a stock at current market price. After selecting market when you will press Buy button, your order will be executed instantly at current market price.
- Now you know the difference between Limit and Market, in the tutorial, I have selected Limit and entered my own price ₹4870 at which I would like to enter in the trade. Current market price is ₹4875.35 (as shown in the screenshot) and when price will come down to ₹4870, my buy order will be triggered; otherwise not.
- In Product Type, you are supposed to select Intraday.
- Let Validity and Disclosed quantity fileds as default.
- Press Buy button to place the order.
- Confirm your order by pressing Confirm button.
- Now go to Orders and see if order is triggered. If triggered then go to Positions to see your profit and loss.
- Now comes the important step which most of the new traders skip which is placing a Stop Loss order. To place stop loss order, go to Orders then Positions and tap on your active trade.
- Touch Stop Loss option. Then place a stop loss order. Here you will need to enter a lower price at which you would like to exit from the trade with limited loss. By placing a Stop Loss order, you limit your losses. To become a profitable trader, you will need to give importance to money management and Stop Loss is a crucial part of it.
- The Stop Loss Order will go in Pending Orders section and it will remain pending till the price comes down and touches you set stop loss order price. When it will happen, Stop Loss order will get triggered and you trade will be closed.
- Now next important step after placing a trade is decide a target at which you will book profit. In Intraday Trading, you are not supposed to stay as long as you want because you never know when trade will go against you. Therefore, decide a proper target and strictly exit when you get your target.
- To exit go to Positions, tap active trade and press Exit button. Close your position at Market or Limit.
- Once you book profit, do not forget to cancel Stop Loss Order else it will be triggered if price comes down and a fresh position will open. You can cancel it by going to Pending Orders section.
This is how you can do intraday trading in Angel Broking. As I discussed, you can also earn by selling a stock. Next let’s learn this too.
How to earn by selling a stock in intraday?
You cannot only earn when prices go up but also when come down. Here are the steps to earn in Intraday by selling a stock:
- From your Angel Broking app, tap search icon and search a stock in which you want to do day trading.
- Tap on first result.
- Now if you think prices are already high and about to come down or stock is already plunging then tap on Sell button.
- Enter the number of shares you want to sell in Quantity field and then decide whether you would like to place Market order or Limit order (I have explained above).
- Select Intraday as Product Type.
- Let other two fields untouched and press Sell button to place sell order.
- Confirm your sell order details by tapping Confirm.
- Your order will be executed and you will earn if price will go down and loss if price will go up.
- Do not forget to place Stop Loss order to limit your losses.
- Exit once your set target is achieved and cancel your Stop Loss order.
This is how you can earn by selling in intraday trading in Angel Broking.
Disclaimer: Information available in this post is for educational purpose only. Kindly do not take any suggestion as an investment advice.