What is Intraday Trading? A Clear Guide by Harsh Agarwal

A Comprehensive Introduction to Intraday Trading | By Harsh Agarwal

Intraday trading has emerged as one of the most dynamic and fast-paced approaches in the financial markets. For those looking to profit from short-term price movements, it provides both opportunities and challenges. This guide breaks down intraday trading in a simple, practical way, curated by Mr. Harsh Agarwal, a seasoned trader and entrepreneur with over 13 years of experience in the stock, forex, and commodities markets globally.

Who is Harsh Agarwal?

Mr. Harsh Agarwal, born on May 4th, 1987, in Jaipur, India, is a highly accomplished entrepreneur and trading expert. Coming from a well-established business. Harsh was introduced early to the world of stocks, currencies, and commodities.

After completing his B.Com in 2008, he joined Harsh Groups as Director, where he led strategic initiatives across various asset classes. His talent for crafting arbitrage opportunities and trading strategies in futures, currencies, and commodities set him apart as a visionary. His in-depth understanding of contango, backwardation, and cross-market dynamics earned him a formidable reputation.

In 2012, he relocated to the UAE, beginning as a sales executive at Moneyplant DMCC—a licensed entity under Dubai Multi Commodities Centre Authority (DMCCA). His rise was meteoric: from Sales Executive to CEO in 2018, and by 2019, he became the 100% shareholder and Director.

Beyond trading, Harsh Agarwal has diversified into jewellery, hospitality, and real estate, with ventures like Max Wealth Jewellery LLC(Currently named as JMD Trading), Moneyplant Gold & Jewellery Trading LLC, and previously, Dubai’s iconic Mantis Restaurant. He also holds residential and commercial properties across Dubai and was recently honored with the Dubai Golden Visa for Investors.

"Intraday" refers to transactions that occur within the same trading day. In financial markets, the term is commonly used to describe the buying and selling of securities—such as stocks and exchange-traded funds (ETFs)—during regular market hours. It also encompasses the range of price fluctuations, including the highs and lows, that an asset experiences throughout the day. These intraday price movements are especially important for short-term or day traders who execute multiple trades within a single session. All positions are typically closed before the market ends, ensuring no exposure to overnight risk.

Intraday trading refers to the practice of buying and selling securities listed on a stock exchange within the same trading day. The main objective of this approach is to capitalize on short-term price movements to generate profits, while also reducing exposure to market risks associated with holding investments over a longer period.

Some Key Points:

• Intraday is shorthand for securities that trade on the markets during regular business hours and their price movements over a single day.

• Day traders pay close attention to intraday price movements and time their trades in an attempt to benefit from short-term price fluctuations.

• Scalping, range trading, and news-based trading are types of intraday strategies used by traders.

How to Do Intraday Trading?

Intraday trading requires a strategic and disciplined approach to effectively navigate the fast-paced movements of the market. Here’s a step-by-step guide to getting started with intraday trading:

1. Choose the Right Trading Platform

Start by selecting a reliable and user-friendly trading platform or broker that offers real-time data, advanced charting tools, low brokerage fees, and efficient order execution. Most brokers also offer dedicated intraday trading features and margin facilities.

2. Select Liquid Stocks

Focus on highly liquid stocks—those that have high trading volumes and price volatility. Liquidity ensures that you can easily enter and exit trades without significant price deviation.

3. Conduct Technical Analysis

Use technical analysis tools such as moving averages, RSI (Relative Strength Index), MACD, Bollinger Bands, and candlestick patterns to identify entry and exit points. Intraday trading relies heavily on short-term charts like 5-minute, 15-minute, or hourly intervals.

4. Set Entry and Exit Points

Define your trade plan before placing any order. This includes:

• Entry price
  
  

• Target price
  
  

• Stop-loss level to limit potential losses
  
  

This helps eliminate emotional decision-making during market fluctuations.

5. Use Stop-Loss and Limit Orders

Always set a stop-loss to protect your capital from unexpected price movements. Limit orders help ensure trades are executed at your desired price.

6. Manage Risk and Position Size

Avoid overexposure by calculating how much capital to risk per trade (typically no more than 1-2% of total capital). Diversify trades when possible and avoid placing all capital into a single position.

7. Monitor the Market Actively

Intraday trading demands continuous attention. Monitor news updates, index trends, and global cues that might affect stock prices throughout the day.

8. Square Off Before Market Close

All intraday positions must be closed before the end of the trading session. Failure to do so may result in auto square-off by the broker, which could lead to losses or additional charges.

Benefits of Intraday Trading

Intraday trading offers a range of advantages for traders who are looking to capitalize on short-term market movements. While it requires a disciplined approach and continuous market monitoring, it also presents several distinct benefits:

1. No Overnight Risk

Since all positions are squared off before the market closes, intraday traders are not exposed to risks associated with overnight news, earnings announcements, or global events that can affect prices the next day.

2. Capital Efficiency Through Leverage

Most brokers offer margin or leverage for intraday trading, allowing traders to take larger positions with relatively lower capital. This magnifies potential returns (as well as risks), making it a cost-effective trading option.

3. Quick Profit Opportunities

Intraday trading enables traders to take advantage of short-term price volatility. With the right strategy, traders can generate profits within a single trading session, rather than waiting weeks or months as in long-term investing.

4. High Liquidity

Intraday traders typically focus on highly liquid stocks, which ensures faster order execution and minimal slippage. Liquidity also allows traders to enter and exit trades easily without significantly affecting the stock’s price.

5. Lower Exposure Time

Since trades are opened and closed within the same day, the market exposure time is significantly reduced. This limits the potential impact of unpredictable news or market developments that could occur overnight.

6. Flexibility and Control

Intraday trading gives traders the flexibility to choose when and how often they want to trade. With the ability to manage trades in real-time, they maintain full control over entries, exits, and risk management.

7. Opportunities in Both Rising and Falling Markets

Intraday trading allows for both long (buy) and short (sell) positions, meaning traders can potentially profit whether the market is going up or down—unlike traditional investing, which generally relies on upward price movement.

Tips to Follow for Intraday Trading

Research: Thorough research and analysis of the present market scenario, company fundamentals, and knowledge of macroeconomic factors, such as the country's debt status or currency movements.

Invest the Extra: Intraday trading is fraught with danger. It is recommended that you only invest what you can afford to lose.

Don't Overtrade: The stock market does not always follow a predictable pattern. The best way to approach intraday trading is to trade only a few scripts at a time.

Performance Evaluation: Intraday trading is fluid. Keeping track of your results - wins and losses - will help you understand what worked and what didn't. Past performance evaluations will assist you in making better trading judgments in the future.

Intraday Trading Indicator: When it comes to booking profits in intraday trading, you must conduct an extensive study. Certain signs must be followed for the same aim. Intraday advice is frequently thought to be the Holy Grail; however, this is not totally correct. Intraday Trading Indicators can be useful when combined with a thorough plan to maximise returns.

How Do Day Traders Make Money?

Day traders make money by trading assets based on small price fluctuations throughout the day. They often use high amounts of leverage to make these trades. It involves high levels of risk and can be highly lucrative or lead to large losses, depending on the traders' positions and the amount of leverage used.

Conclusion:

Intraday trading is not just about speed—it’s about strategy, timing, and discipline. Under the mentorship and experience of leaders like Mr. Harsh Agarwal, traders can learn to navigate this fast-paced world more effectively. Whether you’re a beginner or looking to fine-tune your trading techniques, staying informed, minimizing risks, and learning continuously are the pillars of success.

As someone who has not only excelled in trading but also expanded across multiple industries in both India and the UAE, Harsh Agarwal's journey serves as an inspiration for aspiring traders and entrepreneurs alike.

Intraday refers to securities that trade during regular business hours, as well as to the movement in their prices over the course of a day. Intraday traders use these price fluctuations to execute trades, trying to make a profit on small changes in price.

Intraday trading strategies include scalping, range trading, and news-based trading. As with any trading strategy, these come with benefits and drawbacks. Intraday traders can use tight stop-loss orders to protect their positions, and they often have increased access to leverage. Their positions aren't impacted by overnight news that can affect price changes. However, their losses can easily mount, especially if they use margin to finance their positions, and high commission costs from frequent trading can eat into any potential profits.

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