How to Do Intraday Trading in Zerodha

Introduction

Intraday trading is one of the most exciting but difficult type of stock market trading. As opposed to long term investment, intraday trading involves buying and selling stocks on the same day in order to earn from market fluctuations. Zerodha, India‘s largest stockbroker, provides a hassle-free platform for intraday trading with sophisticated tools and features that simplifies trading.

In this article, we‘ll guide you through the entire process of intraday trading in Zerodha, from the basics to account opening, step by step trading, necessary tools, expert advice and risk management techniques. Whether you are a novice or a seasoned trader, this article will provide you with useful information to help you make the most of your intraday profits.

Basics of Intraday Trading

Intraday trading or day trading is the process of buying and selling stocks within the same trading day. Unlike long term investing where you hold stocks for months or years, intraday traders aim to make small profits from the day’s price movements. The main objective is to make quick money by leveraging the market’s volatility. But since intraday trading is fast paced, you need to have a good understanding of market trends, technicals and risk management.

Intraday Trading Features

1. Same Day Trade Settlement – All trades must be squared off within the same trading day before market close. If you don’t exit the position, the broker will square it off before market close.
2. No Share Ownership – Since you don’t hold the shares overnight, you are not a shareholder of the company. The focus is only on making quick profits from short term price movements.
3. Higher Leverage and Margin – Intraday traders can trade with margin, meaning you can buy and sell stocks worth more than the money in your account. Zerodha provides up to 5x leverage for intraday trades on select stocks, so you can take more exposure.
4. Market Volatility is Key – Profits in intraday trading is all about price movements. Stocks with high liquidity and volatility are preferred because they allow quick entries and exits.
5. Short Selling Opportunity – Intraday trading allows you to make money even when stock prices go down. Short selling allows you to sell first and buy later at a lower price and make money from falling markets.

How Intraday Trading Differs from Delivery Trading

Setting Up Your Zerodha Account for Intraday Trading

Before you start trading, you need to set up your Zerodha account for intraday trading. Follow these steps:

1. Open a Zerodha Trading Account

• Visit Zerodha’s website and complete the account opening process.
• Submit PAN, Aadhaar and bank details for verification.
• Enable intraday trading (MIS – Margin Intraday Square-off) in your account settings.

2. Fund Your Zerodha Account

• Transfer money using UPI, net banking or bank transfer.
• Make sure you have sufficient funds to cover your trades and margin requirements.

3. Select the Right Stocks for Intraday

• Pick highly liquid stocks (NIFTY 50, Bank NIFTY, and top-performing mid-cap stocks).
• Use Zerodha’s Stock Screener to filter stocks with high volume and volatility.

Once your account is ready, you can start intraday trading with ease.

Step by Step Guide to Intraday Trading on Zerodha

Follow this step by step guide to execute an intraday trade on Zerodha Kite:

Step-1: Login to Zerodha Kite

• Visit kite.zerodha.com and login with your credentials.

Step-2: Search for the Stock

• Use the search bar to find the stock you want to trade.
• Add it to your watchlist for quick access.

Step-3: Choose the Order Type

• Market Order – Execute at current market price.
• Limit Order – Execute at your specified price.
• Stop-loss Order – Protect against heavy losses.

Step-4: Select Intraday (MIS) Option

• Choose MIS (Margin Intraday Square-off) to enable intraday trading.
• This will square off the position before the market closes.

Step-5: Place the Order

• Enter Quantity and Price and click Buy or Sell.
• Order will be executed based on market conditions.

Step-6: Monitor and Exit the Trade

• Use Zerodha’s charts and indicators to track price movements.
• Square off your position before 3:20 PM to avoid auto square-off charges.

This way you will ensure smooth execution and minimize risks.

Ready to take your Trading skills to the next level? Sign up for a free demo today!

Zerodha Tools and Features for Intraday Trading

Zerodha has advanced tools to boost intraday trading:

• Kite Charting Tools: Realtime charts, technical indicators and watchlists.
• Streak (Algo Trading): Automate your trading strategies without coding.
• Sensibull (Options Trading): For options and hedging strategies.
• Margin Calculator: Calculate margin requirements before placing orders.

Using these will help in decision making and profit.

Tips for Intraday Trading on Zerodha

To maximize gains and minimize losses follow these expert tips:

1. Follow the Trend – Trade with the trend.
2. Use Stop-loss – Always set a stop-loss.
3. Avoid Overtrading – Limit your trades per day.
4. Trade Liquid Stocks – Trade stocks with high volume.
5. Use Technical Indicators – RSI, MACD, Bollinger Bands can help in finding trades.
6. Avoid Trading During High Volatility – First and last 30 minutes of the day are highly volatile.
7. Set Realistic Targets – Don’t be greedy, book profits at correct levels.
8. Keep an Eye on News and Events – Major announcements impact stock prices.
9. Stay Disciplined – Follow a trading plan and avoid emotional trading.

Implement these and you will see huge improvement in your intraday trading.

Risks and Precautions in Intraday Trading

Intraday trading can be highly profitable but comes with big risks. Here are the risks and how to manage them:

• Market Volatility – Prices can move fast; use stop-loss.
• Leverage Risks – Margin trading is risky; use it wisely.* Mental Pressure: Fast trading can lead to stress and impulsive decisions.
• Technical Glitches: Internet connectivity issues or platform downtime can stop trading.

To avoid these risks trade with a clear strategy, avoid excessive leverage and always follow risk management rules.

Conclusion

Intraday trading on Zerodha is a way to make money from short term price movements and quick profits. Follow the right strategies, use Zerodha’s tools and manage risks and you will be successful.

Start intraday trading now? Open Zerodha account, follow this and take your trading to next level!