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Intraday Trading | Fundamentals of Stock Market | Trade Smart

Day trading is an art of earning money. Different people think differently but here majority of the people thinks the same as Day trading. Positional trading now a days slowly becoming trend less and the market fluctuations are more and unpredictable due to many factors. People are very much interested to earn money daily rather than to wait for more days, months, years. Because present time is only true and we do not know how the future will be.

What is Day trading ?

Day trading is nothing but the trade done with less profit with at multiple times which close at the end of the same day. In simple words, Buying and selling the stocks in the same day before the market closes is called as Day trading.

Advantages of Day trading

Advantages – Blackbox Software Solutions

 

  • Day trading where the profit or loss can be seen at the end of the day.
  • More patience is required to see profits as we are watching the market daily and the movement of the stock which we hold may go any direction, so only the more patience traders are fit and can see profits.
  • Broker exposure is very much high important and support to us do Day trading. As full margin amount is not necessary to do an Day trade. Best and good brokerage companies are giving up to 10 times for trading exposure for A, E category stocks.
  • In Day trading profit can be seen at any direction of the movement which market goes, but it is not possible in positional trading.
  • Brokerage commission for Day trading is less compared with positional trading, so it is also the main advantage to be considered.
  • There is no overnight risk to be carried forwarded to next day, which do not know what kind of impact will happen in market.
  • Profits can be seen at any time and there is no limits to start and end the trade within the market timings.
  • We do not need too much study or confusions about day trade.
  • You can avoid short-term or long-term investing or holding.
  • As it is daily trading profits, loss, brokerage spent, taxes and net profit can be calculated easily daily without tension.
  • At any time after 09:30am to 03:15pm a trader can enter and exit the market in hos own time, without any restriction.
  • More buying power with traders with small capital is very helpful to trade daily.
  • Momentum of the stocks are main advantage to trade multiple times with small profits.
  • Proper news with similar direction can be used to earn profits in Day trading.
  • Always done just read the news, trade with the news.
  • We can fix daily profit target with ourselves and trade as accordingly, without any problem.
  • Opportunities are more and open to everyone to earn profits from Day trading.
  • Trading in liquid stocks are very much important in Day trading as entry and exit may be faster to see profits.
  • If you are new comer for Day trading Paper trading can be done for one week, before entering.

Disadvantages of Day trading

Turn disadvantages into advantages

 

  • Patience is very much important and most of the time our emotional feelings may forced to see losses
  • Most of the time is spent in working hours and so daily trading is purely up to our decision.
  • Some may think Day trading is stressful, but if choose an good Intraday tips provider like us the problem comes to an solution finally.
  • Very fast and immediate decision making is very much important in Day trading as time and profit never waits for anyone.
  • Fixing Target and Stoploss is mandatory in Day trading and watching or knowing the stock price which we traded is very much important to close the trade at the end of the day.
  • Discipline and trading strategy is very important, if today we trade 5 lots of Nifty future with profit and tomorrow trading of 10 lots with profit and third day with 15 lots with loss does not mean anything and giving a gap for two or three days for trading is meaningless.
  • Generally profits are small as intraday swings on the stocks are smaller.

As considered each and every aspect or product in life has its own advantages and disadvantages, like the same for Day trading. Our only aim is to maximize profits and minimize losses in Day trading.





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