Intraday trading is to take position of any stock during a single day. Either buy or stock but before market closing one has to square off position. Intraday traders targets on small moves in the value of a share.
For example, a intraday trader with Rs.10,000 in his/her account can take a Rs.40,000 position in a stock for day trading purposes. But this amount is not allowed to be held overnight.
One has to be careful with very strict about cutting losses with stop loss values.
Cut your losses short and let your profits run. …With this basic rule intraday trader can be wrong on 50% of his/her trades and still make good money.
In many cases traders take positions for only a few minutes, & in some cases holing a position for most of the day. Some day traders are momentum followers and jump onto any given move, while others try to identify intraday reversals. Virtually at the end of the day all intraday traders use technical analysis ,stock charting, heavily in their decision making.
Because of the high profits and losses that intraday trading makes possible, these traders are sometimes portrayed as bandits or gamblers by other traders.
One has to be clear in mind that brokerage should be very very low an intraday trades.
May be trader with bank demat accounts has to pay comparatively huge intraday trade brokerages which is not much advisable for an Intraday trader.