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What is intraday trading?

Buy now you might be friendly with the term intraday trading. Yet, let us revise that day trading is buying and selling of stocks is in same day. In this post you will learn some of the advantages and disadvantages of trading in intraday. You will also get a reason that will satisfy you by answering your question of why you must invest in intraday trading.

What are the advantages of investing in intraday trading?

The advantages of investing your hard earned money in intraday trading are as follows;
  • You can get high returns
  • As day trading needs low margins, so it is preferable option
  • It offers more leverage on your trading capital
  • You are allowed to trade with more amount than you actually hold in your account at present

What are the disadvantages of investing in intraday trading?

Following are the disadvantages;
  • You need to learn to handle the intraday fluctuations of the market
  • Risk of losing your money is high
  • It is important to have some knowledge about trading before stepping into day trading.
  • The stock reacts on news based information. Thus, it is possible that you may not get even chance to book profit

Why I must invest in intraday trading?

Stock market keep going up, hence it is recommended to invest in the market. In spite of geopolitical concerns, stretched valuations and an unpredictable president stock market just would not go down. If you want to know why shares keep raising then you are here at the right page of internet.

Everything has logic; similarly there is logic to the behavior of the stock market. However, things can turn quickly, and when they do, the decline could be severe in the market. It was noticed that the big winner so far this year has been huge, fast-growing companies like, Facebook, Apple and Google parent Alphabet. Therefore, while the S&P 500 has risen 11% so far this year, the S&P 500 Growth Index, which is concentrated in companies with strong earnings and revenue growth, has risen 17%. On the contrary, the S&P 500 Value Index that focuses on stocks with lower price-earnings, price-to-sales and price-to-book ratios is up by 4%.

When you decide to trade in intraday segment then you must definitely follow these rules;
  • Always find out the suitable sector in which you have appropriate knowledge and read about the recent developments in that sector.
  • Try picking up the stock from the sector and analyze previous trend of the stock with the help of various technical charts.
  • Keep your eye on World Economic news as these factors effect on Indian stock markets. This will provide you possible direction of market.