Day Trading in India 2024

Despite a population of over 1.2 billion, there exists only 20 million active trading accounts in India. Fortunately, as famous traders such as Sudarshan Sukhani and Rakesh Jhunjhunwala continue to make millions of Rupees each year, day trading in India is on the rise. To join the increasing numbers of switched on traders, you need an accurate and comprehensive resource to turn to. Luckily, you’ve come to the right place.

DayTrading.com is an expert guide to day trading in India in 2024. Beginners who are still learning the basics should read our many tutorials and watch how-to videos to get practical trading tips. Experienced day traders can explore more advanced topics such as automated trading and how to make a living on the financial markets.

Top Brokers in India

We have reviewed over 490 brokers and have found that these are the 3 best brokers for online trading in India:

#1
AvaTrade
Bonus
20% Welcome Bonus up to $10,000
#2
Exness
#3
XM
Bonus
$30 No Deposit Bonus When You Register A Real Account

The best brokers in India

What Is Day Trading in India?

The definition of “day trading” is the buying and selling of a security in a single trading day. For example, if you purchase 50 shares of Tata Motors in the morning, you’ll have sold your position by the end of the trading day, and then start from scratch the following morning.

Day trading is normally done by using trading strategies to capitalise on small price movements in high-liquid stocks or currencies. The purpose of DayTrading.com is to give you an overview of day trading basics and what it takes for you to make it as a day trader.

What Can Be Traded in India?

The most lucrative and popular day trading markets today are:

If you want to branch out from the National Stock Exchange of India and the Bombay Stock Exchange, you can trade in other global markets. If you’re S&P 500 day trading, for example, you’ll be buying and selling the shares of companies, such as Starbucks and Adobe.

In the day trading forex market, you’ll be trading currencies, such as Indian Rupees, US Dollars, Euros, and GBP. In the futures market, often based on commodities and indexes, you can trade anything from gold to cocoa.

Index funds frequently occur in financial advice these days, but are slow financial vehicles that make them unsuitable for daily trades. They have, however, been shown to be great for long-term investing plans.

Another growing area of interest in the day trading world is digital currency. Day trading with Bitcoin, LiteCoin, Ethereum and other altcoins currencies is an expanding business. With lots of volatility, potential eye-popping returns, and an unpredictable future, day trading in cryptocurrency could be an exciting avenue to pursue.

Day Trading For Beginners

Recent reports show a surge in the number of day trading beginners in India. The best way to learn the basics is to utilise the range of resources available to you. These include trader academies, courses, and resources, including trading apps. Daytrading.com exists to help novice traders get educated and avoid mistakes.

Day trading 101 – get to grips with trading stocks or forex live using a demo account first, they will give you invaluable trading tips. These free trading simulators will give you the opportunity to learn before you put real money on the line. They also offer hands-on training in how to pick stocks.

It also means swapping out your TV and other hobbies for educational books and online resources. Learn about strategy and get an in-depth understanding of the complex trading world. DayTrading.com is the ideal beginners guide to day trading online.

Books for Beginners

Both day trading books are by Indian authors, who will provide you with the basic day trading rules to live by. Plus, one of the best ways to learn is from those with real day trading experience in India. You’ll also benefit from day trading recommendations on stock picks, plus creative strategy ideas. Alternatively, you can find books with day trading tips in Hindi.

Successful technical trader Sudarshan Sukhani has repeatedly highlighted the need to absorb as much information as possible, especially in those early days. So, get reading.

Patterns And Technical Analysis

Guatam Shah is one of India’s biggest technical analysts and he swears by the use of charts, patterns, and in-depth technical analysis. Day trading chart patterns paint a clear picture of trading activity which helps you to decipher individuals’ motivations. They could highlight S&P day trading signals for example, such as volatility, which may help you predict future price movements.

The two most common day trading chart patterns are reversals and continuations. Whilst the former indicates a trend will reverse once completed, the latter suggests the trend will continue to rise. Understanding these trading patterns, as well as ‘triangles’, ‘head and shoulders’, ‘cup and handle’, ‘wedges’ and plenty more, will all make you better informed when it comes to employing your trading strategies.

Read the Guide to Day Trading Patterns.

Day Trading Strategies

Head over to websites like Reddit and you’ll see many trading dummies will often fall at the strategy hurdle, taking the first momentum examples they see and losing money left, right and centre.

Savvy traders will employ day trading strategies in forex, grain futures and anything else they’re trading in, to give them an edge over the market. Day trading using the Gann method is particularly popular in India, for example. It’s often that tiny edge that is all that separates successful day traders from losers.

There are a number of day trading techniques and strategies out there, but all will rely on accurate data, carefully laid out in charts and spreadsheets. Options include:

• Swing trading
• Scalping
• Trading zones
• Trading on volume
• Arbitrage trading
• A simple day trading exit strategy
• Utilising news

It is those who stick religiously to their trading strategies rules and parameters that often seize a slice of the $3 billion daily turnover in the Indian National Stock Exchange.

Read the Guide to Day trading Strategies.

Trading Accounts

Part of your day trading setup will involve choosing a trading account. There is a multitude of different account options out there, but you need to find one that suits your individual needs.

The list of the best day trading brokers in India has more detailed information on what to think about when signing up.

Terminology

Learn the trading lingo and vocabulary and you’ll unlock the door to a whole host of trading secrets. Below we have collated the essential basic jargon, to create an easy to understand day trading glossary.

General

Charts, Graphs, Patterns & Strategy

If you stumble across a word or phrase that leaves you scratching your head, refer back to this day trading dictionary and chances are you’ll get a quick and easy explanation.

Day Trading vs The Alternatives

Yes, you have day trading, but with options like swing trading, traditional investment, and binary options, how do you know which one to opt for?

Day trading vs long-term investing are two very different games. They require totally different strategies and mindsets. Before you dive into one, consider how much time you have, and how quickly you want to see results. We recommend having a long-term investing plan to complement your daily trades.

Day Trading For a Living

So you want to start day trading as a career in India? If so, you should know that turning part-time trading into a profitable job with a liveable salary requires specialist tools and equipment to give you the necessary edge. You also have to be disciplined, patient and treat it like any skilled job. Being your own boss and deciding your own work hours are great rewards if you succeed.

Analytical Software

Whilst it may come with a hefty price tag, day traders who rely on technical indicators will rely more on software than on news. Software is another of the day trading tools to add to your arsenal. Whether you use Windows or Mac, the right trading software will have:

Psychology

If you’re trading as a career you have to master your emotions. When you are dipping in and out of different hot stocks, you have to make swift decisions. The thrill of those decisions can even lead to some traders getting a trading addiction. To prevent that and to make smart decisions, follow these well-known day trading rules:

Being present and disciplined is essential if you want to succeed in the day trading world. Recognising your own psychological pitfalls and separating your emotions is imperative.

Read the Guide to Making a Living on Day Trading.

Education

DayTrading.com exists because we could not find a reliable day trading school, university, academy, or institute that runs classes where you can get an all-inclusive day trading education. This site should be your main day trading from India guide, but of course, there are other resources out there to complement the material:

For the right amount of money, you could even get your very own day trading mentor, who will be there to coach you every step of the way. Opt for the learning tools that best suit your individual needs, and remember, knowledge is power.

7 Secrets To Success

Whether you’re looking for day trading jobs in India you can do from home, or you want to start trading as a hobby, follow these seven essentials.

1. Setting Up

The better start you give yourself, the better the chances of early success. That means when you’re sat at your desk, staring at your monitors with hands dancing across your keyboard, you’re looking at the best sources of information. That means having the right platform for your Mac or PC laptop/desktop, having a fast and reliable asset scanner and live stream, and software that won’t crash at a pivotal moment.

2. Keep It Simple

This is especially important at the beginning. You might be interested in the Bombay Stock Exchange, the S&P 500, mutual funds, bond futures, Nasdaq, Nasdaq futures, blue-chip stocks, equities, or the Dax 40, but to start with focus on only one. Get good at making money from one market/security before you branch out. The other markets will wait for you.

3. Be Realistic

The movies may have made it look easy, but don’t be fooled. Even the day trading gurus in college put in the hours. You won’t be invited to join that hedge fund after reading just one Bitcoin guide. You need to order those trading books from Amazon, download that spy pdf guide, and learn how it all works.

4. Risk Management

This is one of the most important lessons you can learn. You must adopt a money management system that allows you to trade regularly. Is day trading really worth it if you’ll be broke by the end of the first month?

History has shown that many successful traders never risk more than 1% of their account balance on a single trade. So, if you had Rs 100,000 in your account, you’d only risk Rs 1000 on a single trade. Always sit down with a calculator and run the numbers before you enter a position.

5. Keep a record

One of the day trading fundamentals is to keep a tracking spreadsheet with detailed earnings reports. If you can quickly look back and see where you went wrong, you can identify gaps and address any pitfalls, minimising losses next time.

6. Timing

Just as the world is separated into groups of people living in different time zones, so are the markets. If you start trading on the Cac 40 at 11:00 ET, you might find you’ve missed the best entry signals of the day already, minimising your potential end of day profit. So, if you want to be at the top, you may have to seriously adjust your working hours.

7. Sensible decision making

When you start day trading you’ll have a host of difficult decisions to make. Should you be using Robinhood? What about day trading on Coinbase? Do you have the right desk setup? Where can you find an excel template? How do you set up a watch list? The meaning of all these questions and much more is explained in detail across the comprehensive pages on this website.

You can also find more detailed and comprehensive lessons in our top tips.

Taxes

Day trading tax rules in India are a somewhat grey area. India’s Central Board of Direct Taxes (CBDT) breaks trading taxes into four distinct categories. You will need to decide where your activities fit in to understand the extent of your tax obligations.

Read the Guide to Day Trading Taxes in India for more comprehensive information on tax rules and reporting.

How Much Money Will You Make?

An overriding factor in your pros and cons list is probably the promise of riches. We’ve all heard stories of Indian gurus who have made vast fortunes, including Dhirendra Kumar and Samir Arora. Whilst, of course, they do exist, the reality is, earnings can vary hugely.

Making a living day trading in India will depend on your commitment, your discipline, and your strategy. All of which you can find detailed information on across this website.

The real day trading question then, does it really work? If you’re willing to invest the time and energy, then for you, it could well do.