Intraday trading ( Day trading ) is speculation in securities, specifically buying and selling financial instruments within the same trading day, such that all positions are usually closed before the market close for the trading day. Traders who participate in day trading are called active traders or day traders. Traders who trade in this capacity with the motive of profit, assume the capital markets role of speculator.
Intraday trading involves a lot of high risks since buying and selling of shares need to be done within the day. It might not only mean losing a lot of money but your entire life savings at times. But on the other hand, taking risks might bring fruition through high returns. One of the main reasons for the intraday trading to gain momentum is the current economic situation. The economic slowdown has not only caused a shortage of jobs but because of the loss of savings and jobs, people feel the need to lessen the loss by investing in high value and high risk financial instruments which would ensure good returns.
Intraday trading has gained momentum in the country because this type of trading does not block the investment amount after the trading hours. Albeit the profit percentage is greatly dependent on the invested amount which makes it a risk trading venture. This means that if you have invested heavily, then your risk percentage and also your profits would be very high. The opposite can happen too, that means if you have invested heavily and there is not much trading of those particular shares then it means you have lost your entire invested amount.
But the good thing is that intraday trading has gained momentum and many traders actually do prefer intraday trading. It now involves people forming different kind of strategies to get people to buy/sell their shares so that high returns can be achieved. One of the most common strategies of intraday trading is scalping which involves attempting to buy the shares at their bidding price and then selling immediately at the price asked for a quick profit. This is one the biggest allures of intraday trading as it sounds risky yet profitable.
Intraday trading is no less than gambling. It is compulsive and can be dangerous if enough research is not done before it. And like gambling, the one serious shortcoming that many amateur traders have faced while intraday trading is the management of money. This means that people need to be conscious of how much money they are risking. One should not go all in with their capital. And even with the amount which they are using to trade should be used once they have researched and know what they are getting into.
It helps to choose those stocks which are volatile; stocks which are responsive to price volatility would keep the stock momentum good at all points of time. Trading in volumes also helps in intraday trading. This can be done by trading more volumes of stocks at lower prices leading to an averaging in the profits at the end of the day’s session. They are known to be intraday traders’ favourites.
In the end it is important to be realistic in your dealings and you should realize not only profits but losses are also a probability.
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Intraday trading involves a lot of high risks since buying and selling of shares need to be done within the day. It might not only mean losing a lot of money but your entire life savings at times. But on the other hand, taking risks might bring fruition through high returns. One of the main reasons for the intraday trading to gain momentum is the current economic situation. The economic slowdown has not only caused a shortage of jobs but because of the loss of savings and jobs, people feel the need to lessen the loss by investing in high value and high risk financial instruments which would ensure good returns.
Intraday trading has gained momentum in the country because this type of trading does not block the investment amount after the trading hours. Albeit the profit percentage is greatly dependent on the invested amount which makes it a risk trading venture. This means that if you have invested heavily, then your risk percentage and also your profits would be very high. The opposite can happen too, that means if you have invested heavily and there is not much trading of those particular shares then it means you have lost your entire invested amount.
But the good thing is that intraday trading has gained momentum and many traders actually do prefer intraday trading. It now involves people forming different kind of strategies to get people to buy/sell their shares so that high returns can be achieved. One of the most common strategies of intraday trading is scalping which involves attempting to buy the shares at their bidding price and then selling immediately at the price asked for a quick profit. This is one the biggest allures of intraday trading as it sounds risky yet profitable.
Intraday trading is no less than gambling. It is compulsive and can be dangerous if enough research is not done before it. And like gambling, the one serious shortcoming that many amateur traders have faced while intraday trading is the management of money. This means that people need to be conscious of how much money they are risking. One should not go all in with their capital. And even with the amount which they are using to trade should be used once they have researched and know what they are getting into.
It helps to choose those stocks which are volatile; stocks which are responsive to price volatility would keep the stock momentum good at all points of time. Trading in volumes also helps in intraday trading. This can be done by trading more volumes of stocks at lower prices leading to an averaging in the profits at the end of the day’s session. They are known to be intraday traders’ favourites.
In the end it is important to be realistic in your dealings and you should realize not only profits but losses are also a probability.
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