Intraday trading, also called day trading, is the art of buying and selling stocks or other securities within the same trading day — and it’s where I’ve spent the last 25 years sharpening my edge. In markets that are moving faster than ever, intraday trading can offer the right kind of volatility for traders with discipline, strategy, and preparation. The purpose of this guide is to walk beginners through the practical steps, setups, and risks involved in trading during the same session — with no hype, just real talk backed by years of real trades and real students.
If you want to know the stocks I’m looking for — check out my free webinar here!
You should read this article because it shows you exactly how to start intraday trading step by step, including strategies, tools, and risk controls beginners often overlook.
I’ll answer the following questions:
- How much money do I need to start intraday trading in the U.S.?
- What are the first steps to becoming an intraday trader?
- Which strategies work best for beginner intraday traders?
- How do I use a demo account to practice intraday trading?
- What are the biggest risks in intraday trading I need to watch out for?
- How can I manage risk using stop losses and take profit levels?
- Is intraday trading a good choice for beginners compared to swing trading?
- How many trades should I make each day as a beginner?
Let’s get to the content!
Table of Contents
Why Some Traders Choose Intraday Trading
Intraday trading means opening and closing your position within the same market session. Whether you’re trading stocks, options, or other liquid assets, the goal is to capitalize on price movement — not hold overnight.
This style of trading appeals to many because of its potential for fast profits and clean account management. Since you don’t hold positions overnight, you avoid risks tied to earnings reports, macroeconomic news, or global events that hit after market close. You also benefit from real-time price action and the chance to make multiple trades in a single day based on chart signals, volume spikes, or news catalysts. This is about quick execution and tight risk control.
From my experience teaching thousands of students over the last 15+ years, I’ve seen intraday trading help beginners learn faster — but only if they start small, stay focused, and respect the risks. It’s not easy money. It’s fast money when you prepare the right way.
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How to Start Intraday Trading (First 30–90 Days)
To begin intraday trading, start by building a strong foundation in market basics, order types, and trading psychology. Understand how volume, liquidity, and bid-ask spread affect execution. In the first month, follow 2–3 high-volume stocks daily — the kind of tickers that consistently show price movement and react to news or technical signals. Start reading charts, looking at support and resistance, and following price action.
Before risking real money, use a paper trading account to simulate trades. This helps you develop timing, identify patterns, and test strategies without risking capital. The goal is not to “win” fake trades — it’s to build discipline, learn proper entries and exits, and practice managing risk.
When you go live, start with a small account. Take minimal position sizes. Use stop-loss orders religiously. Log every trade — entry price, exit price, size, reason, and outcome. Review your performance weekly and focus on consistency, not big gains. I’ve seen my top students build from small accounts not by chasing profits, but by refining their setups and execution through repetition. Stick to one or two proven patterns. If you’re disciplined in your first 90 days, the rest gets easier.
Useful Intraday Trading Strategies for Beginners & Intermediate Traders
Intraday trading strategies can give you a repeatable process — if you’re focused, well-prepared, and willing to do the research. Beginners and intermediate traders often struggle because they bounce between alerts or chase random stocks without understanding the market conditions or why a setup works. This is where strategy matters.
Every trade you take should be based on analysis, not hope. Whether you’re trading shares of a small-cap company, contracts in an option strategy, or reacting to a sector catalyst, the goal is to execute a plan that makes sense based on price movement, volume, and risk-reward.
You don’t need to guess. You need to react to what the market is showing you.
Intraday setups work best when they’re rooted in data — clean chart patterns, recent news events, or even broader investor sentiment. Understanding why a stock is moving and how other traders might react gives you an edge. For example, a low-float security that spikes on a press release with strong volume in the first hour often attracts short sellers. That creates a window of opportunity if the squeeze triggers new buyers.
Options trading can also be part of your intraday strategy, but only if you understand the structure. You’re not just looking at the stock. You need to factor in the strike price, expiration date, premium movement, and even how the greeks like delta and theta impact your position. I’ve never been a huge fan of complex options trades for beginners, but I’ve coached traders who use simple calls or puts to trade big names reacting to earnings or macro news. The key is risk — and if the option chain is too expensive or illiquid, it’s not worth it.
Fund managers and long-term investors might sit through drawdowns and ride out earnings seasons. Intraday traders don’t have that luxury. You’re trading a moment, not an investment thesis. That means you need to size correctly, protect your capital, and treat each trade like a business decision. One of the biggest lessons I teach — and have seen repeated across my 50+ millionaire students — is to remove emotion and focus on process. Every strategy has to fit your trading personality and current market conditions. If it doesn’t, sit out. That’s still a strategy.
Momentum / Trend-Based Trading
Momentum trading focuses on stocks showing strong price direction — either up or down — paired with heavy volume. Traders look for clean intraday trends and aim to ride the movement while the momentum holds.
Volume is key. Look for spikes in volume that confirm strong buying or selling pressure. Use momentum indicators like VWAP, MACD, or moving averages as tools, but always anchor your decisions in price action. You’re not trying to predict the trend. You’re reacting to what the market shows in real time.
Over two decades of trading, I’ve learned that trend-following can be highly effective — but only when you’re quick to lock in profits. Momentum fades. Whether it’s a news event or just the market cooling off, you need to stay alert. No guessing. Let the chart confirm your idea, and always have a stop-loss ready in case the trend fails.
Breakout Trading
Breakout trading is when you buy a stock as it breaks above a key resistance level, or short it when it cracks below support — ideally on rising volume and clean confirmation. These setups are usually based on intraday chart patterns like flags, wedges, or consolidations.
A proper breakout setup should have a clear entry, defined risk, and strong volume as confirmation. Avoid fakeouts — where the price briefly breaks out then reverses — by waiting for the breakout to hold for several minutes with steady buying or selling pressure.
Many of my favorite trades over the years started with a clean breakout. Whether it’s a stock reacting to a contract win, biotech news, or just momentum, the setup works if you manage risk. Don’t anticipate — wait for the move. This is where patience pays off. And remember, even with a clean pattern, not every breakout leads to a big move. That’s why your exit strategy matters just as much as your entry.
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Scalping & Quick Reversals
Scalping is a fast-paced trading method where you aim to make small profits from quick intraday movements — sometimes lasting only seconds or a few minutes. This strategy works best in high-liquidity stocks with tight spreads and clear intraday volatility.
Scalpers typically use Level 2 data, time & sales, and technical indicators to time entries and exits. Every second matters. You need to be laser-focused, manage your order execution tightly, and be willing to take small losses quickly. Reversal scalps — where you go against the short-term trend after a sharp move — require even more precision and discipline.
I don’t recommend scalping for most beginners, but I do teach how to spot ideal bounce setups. If you’re going to scalp, stick to highly liquid stocks with low slippage and use hard stops. Fast gains can disappear just as fast. Respect the risk and don’t get greedy.
Price Action & Technical-Indicator Based Methods
Intraday trading often comes down to reading price action — understanding how a stock moves in real time, based on its chart, support/resistance zones, and volume behavior. You can combine this with simple indicators like moving averages, RSI, or Bollinger Bands to guide entry and exit decisions.
The most consistent traders I’ve taught use tools like candlestick patterns, trendlines, and support/resistance levels to time their trades. Technical indicators help, but they should confirm the setup — not be the sole reason you trade. Focus on clean price movement and where volume confirms the setup.
One of the reasons I teach chart-based trading is because patterns repeat. The same behavior shows up across stocks and sectors. Once you learn to spot those signals — and manage your risk — you’ll start seeing better trade ideas each day. It’s not about having the fanciest tools. It’s about reading the information that matters and acting with discipline.
Risk Control Strategies: Stop Loss, Take Profit & Trade Management
The most important part of any intraday strategy is risk management. Always set a stop-loss before entering a trade. Know exactly where you’ll exit if the trade goes against you — and honor that decision. Most of my students who became consistent had one thing in common: they learned to cut losses quickly.
Have a profit target too. Don’t wait for a perfect top or bottom. When the stock hits your goal or shows signs of reversal, get out. If the move is strong, you can scale out — taking partial profits as the stock moves in your favor.
Risk control is what separates professionals from gamblers. I teach students to risk a small percentage of their account per trade — 1–2% max. This way, no single loss hurts your momentum or drains your mental capital. If you’re wrong, move on. If you’re right, take your gains. Either way, the market rewards discipline more than anything else.
Key Risks & Challenges of Intraday Trading
Intraday trading carries real risks — and most come from volatility, bad timing, or poor risk management. Stocks can move sharply due to unexpected news, market events, or momentum shifts. If you hesitate or overstay a trade, losses can pile up fast.
Leverage is another danger. If you’re using margin, your losses get amplified. Under U.S. pattern day trader (PDT) rules, if your account drops below $25,000 and you make more than 3 day trades in 5 days, you could be flagged and restricted. Many beginners underestimate how quickly a few bad trades can eat through their capital when they don’t have a stop-loss or risk plan in place.
From coaching thousands of traders, I’ve seen that most early losses don’t come from bad setups — they come from poor execution, emotional decisions, and lack of preparation. Intraday trading is high-speed decision-making under pressure. If you’re not mentally ready or overtrading out of boredom, the market will punish you. Stick to proven setups, stay patient, and respect the risk every time.
Key Takeaways
- Start small, focus on preparation and strategy, and never risk too much capital per trade
- Use intraday strategies like breakouts, momentum, and price action with clear risk management
- Track your trades, cut losses quickly, and scale only when consistent — discipline is your edge
This is a market tailor-made for traders who are prepared. Intraday trading thrives on volatility, but it’s up to you to capitalize. Stick to your plan, manage your risk, and don’t let FOMO drive your decisions.
These opportunities are fast and unpredictable, but with the right strategy, you can make them work for you.
If you want to know what I’m looking for — check out my free webinar here!
Frequently Asked Questions (FAQs)
How much capital do I need to start intraday trading in the U.S.?
You can start intraday trading with as little as a few hundred dollars using a cash account, but under pattern day trading rules, you need at least $25,000 in a margin account to make more than three day trades in a 5-day period. Many beginners start small and grow over time while focusing on one or two trades per day with proper execution and discipline.
Is intraday trading the same as swing trading or long-term investing?
No. Intraday trading means opening and closing a position within the same trading day. Swing trading holds positions for days or weeks to capture larger price movements. Long-term investing focuses on the value of a company or asset over months or years. I teach trading, not investing — and intraday trading requires a different mindset, faster decision-making, and tighter risk control.
Can intraday trading be profitable for a beginner?
Yes, but only with serious preparation, risk management, and the right strategy. Most beginners fail because they rush, overtrade, or ignore losses. The most successful students I’ve taught focused on studying, trading small, and building consistency before trying to scale. Profits come after discipline, not before.
How many trades should I make per day?
There’s no magic number. Some traders make one solid trade a day and do well. Others take multiple trades based on different signals or setups. The goal isn’t quantity. It’s quality. If you’re taking 5 or 10 trades with no strategy or without logging results, that’s not trading — that’s gambling. Stick to your plan and only trade when the setup matches your criteria.
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