I am back with a step by step Intraday trading tutorial on Indian stock market, in which I have shown today – how you can earn Rupees 10000 to 25000 Rs ($140 USD -$350 USD) in a day by Intraday trading in stock market, without any permanent investment. Read this intraday trading tutorial in Bangla (Bengali language).
Today is 30th July 2019, the Indusind bank share(stock) price fallen about 100 Rs today and the NIFTY 50 also fallen and all the major share price was very down. So this was a good day for Intraday trading for short selling purpose.
This is a tutorial which shows where you should short sell in a day (Intraday) or take a put option on a stock like Indusind bank.
If you do not know the options trading then you cannot take a put option, so you should be confined on short selling only. If you do not know read Free Tutorials on Futures & Options trading .
Anyway I am coming back to the tutorial, in the picture shown above, where to short sell and where to buy. If you follow the above graph, the share market started from 9:15 AM morning and each green candle or red candle denotes the 30 minutes candlestick graph that means the highest price(High / H), lowest price (Low / L), open price (OPEN / O) or close price ( CLOSE / C) of the particular candle denotes the prices. 30 minutes may be 10AM to 10:30 AM or 10:30 to 11AM & so on..
You need to Learn OHLC graph, or understand candlestick graphs for Intraday trading & you may follow our technical analysis course in Kolkata or online.
By following each candlestick graphs if you watch closely, price gone lowest value of Rupees 1425 level, after opening the market at 9.15AM, then in next 30 minutes green candlw shows it gone higher to 1446 Rs (Rupees /INR) level. But after going to the highest level at 1446 Rupees the stock price started to fall constantly.
In the first hour LOW was 1425 Rs
In the morning from 9.15 AM to 10:15 AM Rs 1425 level was the maximum low value today & then price gone highest value to Rs 1446.
So your target should be when the price will go down more lower crossing the previous minimum value Rs. 1425 then you should short sell and when a new low formed (crossing the previous low Rs 1425 level) after 12:00 noon in a downward trend you should go short or short sell.
So at this moment you make a short sell at Rs 1425 level or lower. After selling you have to wait, because you know price is falling constantly… falling …..falling …….falling ……falling. Without buying you sold few quantity of stocks between Rs 1425 & Rs 1420 level.
I am assuming you sold 100 shares
At 3 PM the price came much lower to Rs 1320 level, but you don’t know the lowest point 1320, so your job will be to buy again the same quantity (100) of stocks you sold at 12 Noon.
Now its time to close short sell
You got a good amount of profit per share when you saw that the price came down around Rs. 1350 to Rs 1340 level, and coming more. So you should buy 100 shares now to close the trade at Rs 1330 or 1325 Rs.
When you are short selling, then you do not know the future prices, so you have to take a risk always and to stay on the safe side you should place a stop loss at the highest value of today that is 1446 Rs. level, today’s HIGH value.
So by this way you earn Rs 10000-25000 in a day
So the picture shown above shows, you can easily earn 90 – 100 Rupees per share in a day by short selling. If you sell 100 shares and you buy it later and you will get 9000 – 10000 Rs, if you sell 200 shares you will get more, for 300 shares will get around 25000 Rs.
Instead of Short Sell
You can also buy a PUT OPTION at the 1425 Rs level, when the price will come more lower you can square off the PUT OPTION and you can earn rupees 25000 in a day by taking a put option.
You can earn easily 3000 to 4000 Rupees in a day for normal price fluctuations so Intraday trading does not require any permanent investment. In the same day you buy first sell later or you sell first buy later and when your trade is closed there is no permanent investment.
If you want to learn my Share Trading Courses in Kolkata or seeking LIVE online courses, visit my website www.bikramchoudhury.org
View the YouTube video on Intraday Trading Tutorial