Intraday trading beginner strategy

I want to discuss my intraday stock trading strategy. I am new to the market and doing my research work at the moment to get on with it.The strategy is based on what i have learnt till now.....

Consider a stock X of Rs500 (a volatile share)

Now suppose it gains Rs 5 and reaches Rs505 on on some time of the day.
This is where I come in. Supposing that the stock is gaining on that day and moving with the market I decide to put a limit order of 1000 shares of Rs506.

Now as an when the share reaches Rs506 my deal will be activated. Now as the stock is moving up lets say its deviates Rs 0.5 and reaches Rs506.5 i can immeditely sell the stock with a profit of Rs500 (1000*.5 = Rs500)

To prevent huge losses i ll olways use stop loss ( in this case Rs505.5)

2 - 3 trade like this a day can fetch me good profit daily.

1. I continue with the market trend and try to book only small profits.
2.I use stop loss strictly to prevent huge losses.


1. I ll incur loss only if the limit price i choose is the Highest price the stock goes to attain on that day, for which i have used a stop loss.( probability that the price i choose will olways be day`s high is almost negligible [ i think ].

Thnak you.

This is just on the basis on what i have learnt uptill now,
Do you use margin trading.
Iam using the same method.mostly I trade in 2,3 stock.Are you considering the brokerage,other charges into consideration
Thanks for your reply.

Yes ill use margin trading. I have not started with trading yet, my account will be activated tomorrow. Sharekhan Broker

Initial investment is 10k

Taking into consideration the brokerage and charges also Daily profit will be possible. I mean Rs500 profit and on the higher side if i deduct Rs 100 for the tax and charges Rs400 is good enough. U get what i am trying to say.

Since you are using the same method please guide me if its a right way that i m goin into if i follow the trick striclty.

Please also let me know if margin trading has any disadvantages.
Thanks for your reply
I use margin trading.Sometimes it is very risky.I will advise you to use it very judiciosly.I mostly trade in some selected stocks IE suzlon etc
have you been successfull in making money through the strategy ?

what is the advise regarding the margin trading ?..i mean i do not think there can be any diadvantages to it. How come is it risky ? Kindly let me know ..
That is the same prob i am facing .. I can olways the stocks for top gainers but to select a stock that is trading its highest at that moment is difficult .

Do u know any way to select stocks that are trending its highest and the time also .how to know it..