- How To Get Profit In Intraday Trading
- How To Calculate Profit In Intraday Trading?
- How To Make Money In Intraday Trading By Ashwani Gujral
How To Get Profit In Intraday Trading – Day trading profits, sounds great, right? The word profit has this magic. This is why many traders are drawn to intraday trading. However, novice traders often question this idea, considering the risks of intraday trading involved. So why don’t we reveal the truth behind it together today?
Before we dive straight into the profitability of intraday trading, let’s quickly recap what that actually means. If we talk about the meaning of intraday trading, it is the buying and selling of stocks (or FnO contracts) on the same day.
How To Get Profit In Intraday Trading
No matter how risky intraday trading is, it is actually a great way to make profits. Let us now shed some light on intraday trading profits and whether it is really worth the hype.
Intraday Trading Profit
Intraday trading is profitable when done with the right strategies and mindset. But how much profit can you expect in day trading?
So the profit percentage of day trading varies greatly based on a lot of factors. So let us first understand how to calculate day trading profit percentage in the first place, with the help of an example.
If Anil, an intraday trader, buys 1000 shares of Company XYZ at 10 AM at a price of INR 100 per share. At 11:45, stock prices reached INR 105 per share, and Anil sold all the shares.
The total percentage of the trade can be calculated as Profit / Original Amount Invested = ((105-100) * 1000)/(1000 * 100) i.e. (5000/1, 00, 000) = 5%
What Is Intraday Trading? Meaning, Features, Strategy And More
You can make anywhere from 2%-5% and even 10%-20% profit in one day (although this rarely happens). The factors that can determine the profit percentage for an intraday trading session are as follows.
If some surprising news about the company comes out in the market, there are greater chances of stock price fluctuation. In these cases, the intraday trader is generally able to make good profits.
However, intraday trading profit can be made in both cases, i.e. the market is bullish or bearish.
If prices rise unexpectedly, a trader can make a good return by taking a long position. But if the market moves in a downward direction, a trader can achieve this by short selling the stock (
Secret Formula Of Intraday Trading Techniques
Therefore, intraday trading is profitable, and the profit you can make from a particular trade depends on your choice of stock, market conditions, the type of trading app you use, and the right strategies.
Now that we know that you can make a good profit through day trading, it is also necessary for you to know how to calculate daily profit.
So, when you calculate your daily profit, you should keep in mind that these fees will also be deducted. Brokerage fees in day trading are charged on both sides, i.e. the buying and selling ends.
Zeeshan has a Demat account with Angel One. He purchased 10 shares in ABC Company for INR 2,000 each. At the end of the trading session, the share prices rose, and Zeeshan sold all 10 shares for INR 2,200 each.
The Secret To Success In Intra Day Trading
The total profit he makes is ₹(10 * 200) i.e. INR 2000, but since he will also have to pay brokerage fees and other fees, the profit will decrease a little.
Now beginners often feel confused when it comes to choosing the right broker. There is a list of full service brokers who offer research tips but at the same time charge high fees for trading.
On the other hand, there are discount brokers that offer fixed brokerage fees but no research often leads to losses.
To simplify this, Angel One, a FinTech broker, has come up with a hybrid broker model where a trader can reap the benefits of free research tips and trade with fixed brokerage fees.
How To Calculate Profit In Intraday Trading?
Angel One offers the iTrade Prime plan, under which it charges INR 20 or 0.25% of the trading volume for intraday trading.
So, in the above case where Anil traded with a total trade value of INR 2,05,000 he has to pay INR 20 to the brokerage to execute the trade with Angel One.
Traders often get confused when calculating brokerage fees. The lack of this often keeps them away from discovering accurate intraday trading profits.
Day trading can be a profitable and lasting source of income for traders. Now let’s assume that you have made significant profits from intraday trading, but the question is when will this add up?
How To Profit More From The Rebound Market
Intraday profits are settled after the end of the market session on the next business day in which you execute the trade.
Therefore, if you make profits today, you will not be able to use them for further trading on the same day. You will have to wait until the end of the market session tomorrow.
Ramesh bought 100 shares at INR 100 per share and then sold them for INR 120 per share, thus making a profit of INR 2,000. There can be 3 conditions now,
In general, now, intraday trading profits are credited to your trading account according to the T+1 rule. This is in line with the new SEBI guidelines.
Intraday Trading Guide
Filing income tax is another concern that traders may have, the general question remains, is intraday trading taxable? Yes, all profits you make from intraday trading are taxed.
All of your intraday trading profits are considered trading income and not capital gains. This means that this will be included in your salary, business income or any other income you generate.
Traders are taxed according to speculative business income and non-speculative business income. Speculative income is that which is generated from trades where it is not held, and all intraday trades across sectors are treated as non-speculative income.
Therefore, these profits are added to the total income and then taxed according to the slab in which they fall.
Very Tough Market For Option Selling Today. Option Prices Kept Spiking Randomly Through The Day Eating Into Profits. Intraday Profit — 5k; Capital Deployed — 6 Lac; Roi — 0.83%
Let us understand this with the help of an example. These are the slabs, and accordingly, your intraday earnings are usually taxed.
Rajesh, 35, is a day trader with an annual income of 12 lakhs. He is generating INR 2,00,000 from intraday trading and INR 1 lakh from F&O segment. Apart from this, he has a rental income of INR 2,00,000.
Let’s see how it will be taxed. So, according to the slab, the income tax will be as follows.
Yes, day trading is profitable. However, there are definitely some conditions that a trader must consider when starting intraday trading.
How To Make Money In Intraday Trading By Ashwani Gujral
Firstly, there are many people who often feel intimidated by the risks involved in intraday trading. While fear is not wrong, it is also important to note that there can be big profits as well.
Now it is not wrong to say that intraday trading is profitable. So, how can you make a profit from day trading at all?
In addition to trading at the right price, conduct proper and in-depth technical analysis of the stock. To give you a little detail on this here is the detail.
Now, there is no trader who does not suffer a loss in day trading. No doubt, this is the riskiest and most profitable trade in the Indian stock market, but still, it can be said that there are traders who make relatively less loss.
How To Get Profit In Intraday?
Do you know why? Because they give the right time to learn them. One can learn intraday trading through different means and one of the best and most traditional ways is books.
By referring to the appropriate book according to your understanding of trading, you can increase the probability of highly profitable trades in the market.
Technical analysis of stocks helps you understand the trend, volatility, volume and momentum of a stock price. These factors can help you time the market, where you can enter and exit at the right time.
Find the right stock and give the right time to perform technical analysis. For this, one must know which chart to look at and of course use different technical indicators.
Best Intraday Trading Tips To Follow
With the above books, you can gain understanding but to gain experience, it is important for you to practice those skills in the live market.
Technical analysis also helps you identify potential support and resistance levels which makes it easier for the trader to set a target price and stop loss.
Intraday trading is an excellent way to earn big profits if you look at it carefully. You can easily start trading and reap the benefits. The winnings you earn will be added to T+1 days, and then you can use this for further trading. Since people want to earn income in the short term, that’s why they choose intraday trading.
This thing of any trade or any business when you are starting at the beginning there are many uncertainties and that is why you need to prepare at the beginning when you are in the planning procedure.
Intraday Trading For Beginners In India
As I said, it seems easier but actually it is not so, you need to put more efforts, this is the important tool for day trading or any type of trading.
See, when you invest in the stock market using fundamental analysis, you need to research…