Shares brought and sold within a day in stock exchange called intra-day trade. Once we take position in market hour we have to square off same script before market close. Intra-day trading most popular on this days. All traders choose intra-day trade to make profit in short period, But intra-day trade not consider as investment because it's deals in short period.
For intraday traders every day is a fresher day, who are participating buying and selling activities within market hours called intraday traders or day traders. Intraday traders intention is only get profit short period, they are not hold share more than a day. Intraday system is a one of the best platform to get huge profit within short period. Online trading system is help them to buy and sell shares in single day.
How does it work
Before enter the market we have to make some strategy on scripts. If we select one script, it may be buy or sell we need set target to exit, after the target hit we need square share(otherwise it will automatic square off if put limit order). In case we fail to square off, programme will automatic square script on market before 10 minute end of the day, the time period is depend on stock brokers.
Intraday traders must monitor charts in trading hour. In intraday trading traders can buy or sell first, it is depend on current market trend, in open market hour stock price falling down we have to sell first then buy, vica versa. but impotent thing is we have to exit before market close. It may be gain or loss
Guidance for Intraday Traders
Intraday traders before enter the market have to follow some rules. Traders first check over all market trend how is going like up, down. When buy shares in intraday tading traders have to decide open level , stop loss and target price. Once reach stop loss or target level traders immediate exit from the shares it is help them to gain profit and stop their loss.
Before market hour traders make some technical analysis for intraday system because this type trading working only on technical analysis. So technical analysis is very important to intraday traders and another important thing in share market if we first buy share we can hold through convert as delivery but if we first sell stock we have to exit from before market close, In case if we fails to exit it will convert as option and stock exchange put heavy penalty on it.
In intraday trade we can make huge profit through using some strategy and follow the rules of intraday we have to ready accept the challenge. All most traders try make intraday trade in share market to get profit in very less period, But one thing we need understand all traders can not book profit every day here successor ratio is very less, reason is lack of knowledge about intraday trading and some traders not follow discipline in trading. To trade in intraday system we need more experience.
Benefits from Intraday Trading
1. Low Brokerage Charges
For intraday traders can get low brokerage charges on intraday trading. It is help them to reduce indirect expenses in gross profit. All most all brokers can put low charges, it is differ from broker to broker
2. No effect on shares after market negative news
Intraday traders can get relief from after market negative news on market, In case any issue happens in company management it is damage share price in market. Negative news comes after the market close it ll never affect to who participate in intraday trading.
3. Short period profit
Day Traders can book profit within market hour, so they are not necessary wait for profit long time like investors and delivery traders. Where deals happening during market hour in a day so result also comes in short time.
4. High Cash Exposure Limit
Some years ago share brokers decide provide cash exposure on shares, it is help to traders trade in huge number of stocks. Broker provide high cash exposure to intraday traders, but they will close trade within market hour. Compare to delivery and short time traders intraday trades can get extra cash exposure limit. It is depend on company performance, poor category stock can not get cash exposure.
5. Intraday traders can participate more than one script
Once target reach traders exit from the market. After book profit they can not trade in same script So they have more opportunity buy other companies shares in one day. Some traders trades more than six - seven companies it is depends on their strategy on market, all traders can not do this, if we participate in more script we need lot of knowledge.
6. Intraday traders can book profit in both side
In market hour price going up or down intraday trades can book profit in both direction. if the market is going up they can first buy and then sell and visa versa. Intraday traders can book only on high liquidity stocks.
7. High Returns
Intraday day traders can trade more than one script in a day, when they book profit in one script. they will move to another script to book. some traders trade in five and six companies in a day so they have opportunity get high reward. Here brokerage fees also low it is also help them to increase their profit.
8. Need not study fundamental analysis
Fundamental analysis and technical analysis is the major points in trading, Who participation in intraday trade they must study about technical analysis like chat, history and resistance & support level etc . Intraya traders only consecrate about technical analysis. need not study about fundamental analysis like company financial statement, balance sheet, company turnover and other company performance .
9. Learning Opportunity
Intraday trade is the better opportunity learn about market. Traders daily watching the price movement they can get some ideas from market. Intraday trader have to make different strategy on some share, one strategy not works for all script, therefore they have to make different strategy on shares.
.jpg)
