Charts and timeframes
Intraday trading
Also called: day trading, MIS
Intraday trading means opening and closing a position within the same trading session, so nothing is carried overnight.
Intraday trading is buying and selling within one session. Every position is closed before the market shuts, so you carry no overnight risk. Indian brokers offer an intraday product type for this, usually called MIS. If you have not closed an MIS position yourself, the broker squares it off before the close. The cut-off time differs by broker and segment, so check yours.
The NSE equity and F&O session runs from 9:15 am to 3:30 pm IST. MCX non-agri commodities trade from 9:00 am to about 11:30 pm, so an intraday crude oil trader often works in the evening, when US markets are open. Currency derivatives on NSE run from 9:00 am to 5:00 pm.
Intraday matters because time is fixed. A trade that needs three hours cannot be taken in Nifty at 2:45 pm. The first fifteen minutes are fast and wide, the middle of the day is often slow, and the last hour picks up again. Most intraday traders use 5, 15 or 30-minute charts and size the position so one stop-loss is a small, planned part of capital.
The common mistake is converting a losing intraday trade into a carry-forward position to avoid booking the loss. The plan was intraday, the stop-loss was intraday, and now the position faces an overnight gap with no plan at all. Another mistake is overtrading: taking every flicker on a 1-minute chart and letting brokerage and slippage eat the account.
Worked example
A 15-minute Bank Nifty intraday trade
Illustrative numbers. At 10:30 am a buy signal closes on the 15-minute Bank Nifty chart: entry 56,000, stop-loss 55,850, T1 56,150, T2 56,300, T3 56,450. Risk is 150 points, so reward to risk is 1:1 at T1 and 450 to 150, or 3:1, at T3. Price hits T1 at 11:40 am and the stop-loss trails to 56,000. Price falls back and the rest exits at entry, at break-even. The trade is over by lunch.
In WizeBuySell
Intraday is the most common use of WizeBuySell. Signals print on 5, 15 or 30-minute charts with entry, T1, T2, T3 and a stop-loss that trails to entry at T1 and to T1 at T2. The software does not place or square off orders, and it does not know your broker's cut-off. A signal late in the session may not have time to reach its targets. Taking it is your call.