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  • What is Day Trading? The Basics and How to Get Started

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  • Category: Finance
  • Published Date: November 10, 2022
  • Modified Date: November 10, 2022
  • Reading Time: 5 Minutes

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Investors can trade in stock at any time during active trading with the development of online trading. The most common trading method in the stock market is day trading. Transactions take place continuously in the share market every day. Any investor with a Demat account can be a day trader. What are the basics of day trading and how to start day trading, let’s take a look.

What are the basics of Day Trading?

Buying or selling of shares in any period within a day refers to day trading. Investors can earn a high margin of profits by trading in shares as day traders. Many investors engage in day trading for a stable source of income. A day trader must stay highly alert because of the risk involved. With the help of a stock market app, day trading has become much easier. To become a successful day trader, investors follow a few strategies. It includes:

Scalping strategy

The scalping strategy aims at earning small profits throughout the day. It is best for expert investors who can make quick decisions. Investors who use this strategy keep buying and selling shares frequently and profit from the high volume of small profits.

Pullback trading strategy

Investors use stock market charts to analyze profitable shares. To analyze a stock with an established trend, a pullback strategy is used. For example, a share has an upward trend. When the prices of such shares decline, investments have to be made.

Momentum trading strategy

As the name suggests, investing in shares whose price is moving upward is called momentum trading. It is a growth strategy that does not lead to sudden profits. In this strategy, an investor invests in a stable stock whose price is increasing and will increase further based on the forecast. Search for the best investment apps in India to make use of the momentum trading strategy.

Breakout trading strategy

A stock with a constant price that increases from the resistance level falls under breakout trading. It is one of the most profitable trading strategies. However, finding the right stock that is about to rise from resistance is difficult.

News trading strategy

The stock market is highly affected by the economy. Any sudden news report can lead the stock prices to increase or decrease. This strategy allows investors to take advantage of a sudden rise in stock prices by keeping track of recent news.

Steps to get started with Day Trading

The first step to becoming a day trader is opening a Demat and trading account. Like any other trading method, day trading requires a Demat account linked to your bank account. You can open a Demat account online through a bank or financial institution. Once the Demat account is ready, you can start intraday trading.

Tips for successful day trading

Day traders make frequent transactions within a day. Understanding the basics of day trading will help make short-term profits. The risk involved in day trading is high because of the frequent buying and selling in large volumes. There are a few tips that day traders must follow to minimize risk and get returns from investments.

Learn about the basics stock market

Day trading is suitable for investors who have a good understanding of the market. One needs to know which shares are liquid and which should be held for a longer period to earn profits.

Accumulate capital

As trading is done for short terms, one needs to have accumulated capital. With a fixed sum of money, an investor can slowly start trading. Day trading will lead to marginal profits in a day which can be used to increase capital.

Find your strategy

Do your research and find a suitable strategy. There are various strategies that investors use to earn profits from day trading. You must keep in mind that such strategies may not be right for investors with different goals and capital available.


Intraday trading is one such method that requires high focus and monitoring. Not everyone can engage in day trading, especially if an investor cannot dedicate most of their time to analyzing market fluctuations. If any investor wants to start day trading for small but constant returns, research should be made to know the market conditions. The fundamentals of day trading are, investing in small amounts, research, and monitoring. Many investors start day trading without knowing the risks involved. The rewards from day trading can be high. But, if an investor is not cautious enough, it can result in high losses. You can use mobile trading apps to get the latest information about the stock’s position.

Thus, you need not bear losses due to any wrong trade on paper-trading apps. Using the best paper trading app, you can gain confidence to dive into the real trading world. Explore the brokerage world and find the best discount stock broker offering the best trading app.

Nancy Ahuja Delhi

By Nancy Ahuja Delhi
who is a self-dependent girl who has been running her business for the last 3 years in Delhi. She has a couple of years of experience in the field of business and loves to write about finance, gadgets, business, and lifestyle.

Member since October, 2022
View all the articles of Nancy Ahuja Delhi.

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