A stock market is a marketplace to buy and sell various financial instruments such as equities, bonds, and derivatives. You can only make transactions in the stock market through brokers. It is crucial to know how stock market works before you begin your investment journey.

The price of a security listed on a stock exchange (BSE or NSE) is decided by its demand and supply in the market. The broker places orders on the stock exchange on your behalf. Further, the stock exchange looks for buyers and sellers at a price pre-defined by you. Once the exchange finds the right match, your order is executed. The security acquired or sold by you is stored in a DEMAT account. It takes t+2 days for the security to reach your DEMAT account.

Intraday trade means buying and selling a security on the same day, which results in no change in stocks you hold at the end of the day. In delivery trades, you take delivery or sell your shares which may change the composition of your portfolio. For example, suppose Reliance Industries (RIL) declared its December quarter earnings yesterday, and reported massive growth across business verticals. This usually means RIL share prices will rise in subsequent trading. You want to take benefit of this price movement and place a buy order in the morning. You have two options here: One, you place an intraday buy order and book profit by selling them before the market close. In this trade, no shares are credited to your DEMAT account. Option two is buy shares for more than one day, that is, take delivery of shares to benefit from multiple days or months of price movement. Shares you buy will be credited top your DEMAT account.

The following are the basic intraday trading tips for beginners.

Pick the right market: Always pick the market you understand—whether equity, commodity or currency.
Pick right security: Choose a stock or a commodity which has high liquidity. You also need to be aware of any news triggers for the selected security to make a profitable trade.
Fix entry/exit price beforehand: Before you process your order, decide at what price you want to enter the trade. This will help you reduce mistakes. Similarly, always exit trade once price reaches the target.
Have a stop loss: If the price is not moving according to your prediction, having a stop loss cuts your losses before it becomes too big. Always exit your trade one stop loss is breached.
Get the timing right: Pick a suitable time to trade. Early in the day and in the last hour, volatility is very high. For beginners, trading around the noon can be best time to trade. Diversify: Never put all eggs in a single basket. Trade with a small portion of your capital or bet on more than one security. Then, in case one trade goes bad, you won’t lose your entire capital.
Learn to read charts: Most trading is done after doing a technical analysis of a security. It is better to have a basic understanding of common charts and patterns to make a profitable trade.

Day trading involves various investment techniques and multiple aspects. The following are some things to remember in day trading for new investors.

Try and avoid trading in highly volatile markets. It is better to invest in markets whose prices movements are predictable.
Decide your risk to reward ratio before placing the order and stick to it throughout the duration of the trade.
Since intraday trading tends to be risky, you should always trade intraday with a stop loss to minimise your losses.
Conduct technical and fundamental analysis of securities before trading them.
Do not forget to decide the entry and exit levels of trades before placing your orders.