Intraday trading involves buying and selling stocks on the same trading day before the market closes. It is a way to profit from stock index movements, not for long-term investing. Monitoring stock price fluctuations is crucial for success in stock trading. To engage in Intraday trading, you need to open an online trading account and specify that the order is for Intraday trading. Orders must be squared off or converted into delivery by the end of the trading day. This type of trading is also known as Intraday trading.

Advantages of Intraday Trading

Intraday trading involves buying and selling stocks on the same day, reducing risk with no long-term commitment. Stockbrokers charge low fees as delivery costs are waived, including service tax, trade fee, and stock transaction tax. This type of trading can yield higher returns, especially through short selling in adverse market conditions. In addition, liquidity is a key advantage as the invested amount is not tied up in asset purchases. Capital gains can be made in bullish and bearish markets by trading listed securities, with short-term sales offering profit opportunities during market declines.

Cons

Intraday Trading offers benefits but comes with drawbacks. The high frequency of trades leads to increased commission costs. Certain assets, like mutual funds, may not be accessible. Quick profit generation may be challenging, as positions must be closed promptly. It is crucial to weigh the pros and cons before investing in Intraday Trading to avoid rapid losses, especially when leveraging purchase margins.

Intraday Trading Tips, Strategies & Basic Rules

• Select a few liquid shares
• Set entry and target prices.
• Apply stop loss for minimal impact,
• Book profits when the target is met.
• Do thorough research,
• Avoid going against the market