If we talk in simple language, then in intraday trading, traders buy and sell shares in the same day, that is, at 9:30 AM, if you buy or sell any stock, then at 3:30 in the evening you have to close your position. And closing is mandatory in the same day. Intraday trading involves buying and selling of stocks within the same trading day. Here shares are not bought for investment, but to gain profit by promoting the volatility of the stock index. Thus, in order to make profit from trading the shares, the movement in the prices of the shares is monitored.
Now what is the benefit of this, how can you start trading in the same day and make a profit and exit your position? To answer all these questions, let’s start what is intraday trading.
Now when it comes to earning more money in less time, there are many types of risks involved in it, many times traders are unaware of the risks of intraday trading and because of this they end up losing a lot. So how can you limit your risks and losses?
By selecting a right stock, which requires the right understanding and knowledge. There are some important things to keep in mind while doing intraday trading such as:
Choosing the right stock
Doing technical analysis of stocks
Trading at the right time
Trading your goals
Stay away from greed
So let’s know the process of starting intraday trading:
First of all, you have to open an account with a choice, for which you need to have some documents like PAN Card, Aadhar Card, and Saving Bank Account. After opening the account, you can login to the trading app and choose the right stock on it and trade in it.
In the trading app for trading, you have been given different types of charts and indicators for technical analysis, with the help of which you can choose the right stock and trade. After this you click on the Buy / Sell button to trade in the stock and fill in the number of shares, the price at which you want to trade.
On this, to book your profit in the trade and to limit the loss, you are given the option of advanced order type (bracket order, cover order and stop loss order), with the help of which you can make a right trade and make your profit.
How to earn money from intraday trading?
Now let’s talk about how you can earn profit or more money from intraday trading? For this, as we talked about earlier, for this, you need to have a proper understanding of stocks and understanding of technical analysis and patterns in intraday trading.
Apart from this, you can increase your intraday trading profits by using some of the following tips:
Set your goal
Do research properly
Be aware of market news
Keep track of time
Trade in bulk
Now more money is required to trade more volume, then you can also use margin to trade in intraday trading.
What is margin? So let’s know its advantages in margin and intraday trading.
You will be aware of how the loan is taken in the bank and what kind of loss or benefit can you get from it? You must be thinking that what is the importance of bank loan in intraday trading?
Example just like a bank loan helps you meet your needs, margin in intraday trading helps you to trade more. So if you do not have enough money to do intraday trading then you can trade with margin from your stockbroker. So if you have 10,000 rupees in your trading account to trade, then you can trade 5x i.e. up to 50,000 in any intraday trading stock from the broker. With this you can increase profits even with less money.
Now as you know that in the stock market, you can start trading from 9:15 in the morning and trade till 3:30 in the evening. So it is important to do intraday trading within this time, if you do not close your position before the market closes then the stockbroker auto-squares off your position for which he charges you extra fees apart from brokerage.
Now here comes a question, can you benefit from intraday trading at any time throughout the day?
It depends on the market news and volatility, but in general most traders consider the first hour of the morning i.e. 9:30 am to 10:30 pm as the most profitable to trade, because at this time the stock has the highest volatility. ) is seen. So for a better trading experience it is important that you know about the market for the first 15 minutes and decide to trade based on that.
Now you will know about advantages & disadvantages of intraday trading
Advantages
Firstly, since intraday trading allows you to buy and sell stocks within the same day, you do not have to take any risk after the market closes.
With this, in intraday trading, you can earn money from the falling market by short-selling.
By using margin, you can increase your profits by trading more with less money in intraday trading.
If you understand intraday trading properly and trade with a right information, then you can also make it a means of your employment.
Disadvantages
Market volatility sometimes becomes the cause of a trader’s loss, so on one hand, while intraday trading has more options to make profits, on the other hand it also has many types of risks, which it is very important for a trader to be aware of.
In intraday trading, you have to take some important decisions in a short time, sometimes the trader focuses on making more profit, due to which he has to face losses at times.
Now beginner traders, who do not have much understanding of the market, many times trade in wrong stocks due to which they have to bear a lot of losses.
Many times some kind of false rumor in the market becomes the reason for the loss of intraday traders, So keep in mind whether the stock in which you are trading is right for intraday trading or not.
Conclusion
So intraday trading is nothing but the reaction of buying and selling of stocks in the same day. In this, if you trade at the right time, with the right understanding and strategy, then you can increase your profits to a great extent. So before starting, get the right understanding and knowledge of trading.
