What are the Pros & Cons of Intraday Trading?
Intraday trading basics-
What is Intraday trading?
Just as the name suggests Intraday trading means buying and selling stocks on the same day. By the movement of stock indices, profits are earned. Stocks are not held more than a day here.
From online trading platforms like Zerodha or Angel Broking, we can perform the buying and selling of securities like stocks, etc on the same day with the help of trading account. We do not need a Demat account for performing the intraday trading. Always use real-time charts to analyze the price movements of stocks and make profits. Usually, the duration between buying and selling of stocks is 5–6 hours a day to complete both transactions.
Who can perform “Intraday Trading”?
- Those who are willing to take risks.
- Who can follow the stock market closely.
- Intraday trading involves a lot of analysis so it requires your full attention towards it so if you are involved in any day jobs, full-time jobs then don’t choose day trading or intraday trading.
- Those who know how to “Time the market” that is to know when to buy and when to sell the stocks.
- Be ready for both profits and loss.
- Continuously gain knowledge about the stock market for better performances.
- Always be self-driven.
- Don’t be influenced by other traders, they might have their own strategies which might fail for you.
For all the intraday traders always know there are many pros and cons of intraday trading. Take a look at these and then decide if you want to perform the intraday trading.
Learn more- Intraday Trading vs Long-term Investing: What are Pros and Cons?
