Introduction:-
Stock market participants carry out trading and investing and hold their positions for different time durations, varying from a few seconds to a few years. Some even hold their positions for decades. Of these different trading durations, we will be discussing intraday trades and learn what are the intraday trading strategies.
Intraday trading refers to taking a position and squaring it off or exiting it in the same trading session. These trades are considered short-term trades and the strategies and factors taken into consideration are vastly different as compared to long-term trades.
Advantages of Intraday Trading:-
✔ Capital required for intraday trading is less as you can participate in margin trading You can make big profits when there is high volatility.
✔ You can immediately withdraw your money after exiting the trade as there is no settlement time as is the case in delivery trading.
✔ As your capital is freed up immediately, you can take trades more frequently.
✔ You can take advantage of leverage trading, depending on the margin provided by your broker.
Disadvantages of Intraday Trading:-
✔ When you are taking more frequent trades, you are more likely to be rash and may make errors.
✔ When you make money faster, you also run the risk of losing it faster, making this a risky endeavor if you do not stick to your trading plan.
✔ There will be good days and bad days, depending on the market.
✔ Loss in trading can have a negative effect on your psychology and may take a toll on your health.
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https://kundkundtc.com/blog/what-is-intraday-trading/