Minimum money you need to start Intra-Day Trading
To start any business, you need money. Every business needs some minimum money to start work. There is no business in this word you can start without spending your money. Same thing is with the Share Market.
Frequently, we come up with the questions ;
What is the ideal amount for IntraDay Trading ?
What is the minimum capital do I need to become Intra-Trader ?
How much is the minimum money do I need to start Intraday Trading ?
However, there is no fixed amount set by Indian Share Market exchanges to do intraday trading. Acc. to Indian Share market Exchanges, you can do Intraday Trading from Rs. 100 also. But, we will not advice you to start Intraday trading without some proper plan of money flow and backup in case of losses. Intraday Traders should always have enough capital in case of sequence of losses.
Minimum money you need to start Intraday Trading
As we already told you, there is no fixed amount set up by the Indian Share Market. But, we will recommend you to start Intra-Day trading with at least Rs. 1 Lac. If you are thinking to start your Intraday Trading with Rs. 5000 or Rs. 10000, you are not thinking it for a long term. You can get lucky for 1 or 2 days with small amount, But To start your career as a Intraday Trader, you need minimum that amount of capital. Because, No one could be 100% about their Intra Trade and in case you are trading with small amount; you can’t bear loss of even a single trade and your career will be finished before starting.
One more benefit of a good capital is that you will not have to trade in high volatile stocks which can blow off your account in seconds. You can trade in less volatile stocks and finish your day with profit or less loss.
Leverage & risk management in Intraday trading
Normally, Stock Exchanges give leverage of 5 to 10 times to day trader. It means, if you have 1 lac of capital, you can do trading for 5 to 10 lac. Problem with leverage in day trading is that you can’t take it at home. It means, in case if you are in a loss in a particular trade and you are sure that you will come out in profit if you maintain this trade for 2-3 days; Stock Exchanges will not allow this. As you are trading on the leverage, you should limit your risk to .5 to 1% of total trading account balance on every trade because if you are trading on more than 1% risk, you will not be able to cover losses in long term.
It means if you are having Rs. 1 lac in trading account, you should not take risk of more than Rs. 1000 in particular trade. You should respect your stop loss. Don’t let emotions increase your loss. Stick to your rules and get out of a losing trade in case Stop loss has been hit.