Hello to all members
As a new comer in the market should I go for intraday trading?
If yes than what are the advantages and disadvantages of doing intraday trading…
thanks form advanced
Everyone has a skill to find market trend, some could find it for few hours, others for few days…
if you are the one who finds it easy to catch a trend for few hours then probably intraday suits you best. … if you think trend finding for few hours seems difficult but you can see what price will come after few days then you may go for positional trades…
along with that there are other several factors attached to trading like if you doing intraday you can place bracket order, cover order, or mis order which requires a very less margin where in to carry forward a position you will need much more money than that.
I am a full time trader, so I trade both intraday as well as positional trading. However, I take intraday trades only when I am pretty much sure about its short term trend.
You may do the same thing. Talking about the return on investment - intraday requires less margin and has higher level risks wherein if you do positional trades your profit and loss will be limited and the money that you invest, shall be secure.
Conclusion - if you could find short term trend and you want to start trading with less money; you should go for intraday there is no doubt about it… and if you are not getting much time and need less risk and reward ration then probably positional trades are better.
Happy trading
Advantages:
1. No worry about news that come at night
2. More efficient profit management
3. An enforced exit eliminates losses
4. Working with high price fluctuations
5. Positive emotions drive positive attitude
6. Trading in liquid markets
Disadvantages:
1. Intraday fluctuations may be essential raising the degree of risk
2. Constant attention is needed
3. Neglecting the long-term trend
4. Need in constantly updated quote flow
5. P&L are restricted
6. Intraday strategy requires active trading which raise costs
7. Only well-disciplined trader may succeed.
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I don’t know whether to call it advantages or disadvantages, but there is definitely a higher amount of risk in intraday trading, than positional trading. Risk in the sense, you need to be quick in your decision making, in intraday trading. In positional trading you can trade very comfortably and relaxed. So decision making becomes easy. Secondly, there is lot of noise in intraday trading, which is not there in positional trading.
Having said all these, you definitely can do intraday trading if you are pretty sure of your target and stop loss. As for me, I would prefer positional.
Day Trading is a risky and challenging pursuit: buying stocks and selling them again in the same day, making money off tiny fluctuations in the price of a stock over a few-hour period is not a easy job. Market makes moves in fraction of seconds and we need to act very fact to be successful at trading.
And we can act fast only when we have all the information about a stock, there are 100's of stocks out there for trading. How do we decide which one we should choose for the day to perform successful day trading?
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Whatever it is… I don’t know whether you’re expecting the answers in favour of your idea to trade intraday or not. If you new to this job who wanted to be a rich man just over a year or two then you will burn your hand definitely. Don’t come with flying colors. Come and trade with knowledge. Just watch the tickers and read charts analyse technically. There are lot of website and forums are there. Then trade with small amount which won’t be a burden to you. P.S. this is my personal experience.
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if you are new comer dont go for intraday only take delivery of reputed stocks.because market flucctuation depends on various factor like…
1.global market fluctuation
2.results of companies
3.rbi announcements
4.profit booking
5.companies announcement
there are many more factors which derive the stock market…so you can’t judge the fluctuation of market specially if you a new comer. in intraday you can get profit in less time with huge risk. so if you go for intraday please analyse market deriving factores before putting your money in stock market. i think BTST order is better than intraday. so go for delivery…
As far as i have Analyzed trading is driving a car . Ask you self while driving and car do you have think before applying breaks ? or changing gear ? or speed up when the road is empty and slow down when the road is full ? apply breaks when someone comes in between the road you have n number of permutation and combination but you reach your destination safely if you drive with confidence , experience , logic , map etc .and off course you need to have lots of fuel to reach your destination that you have place far the destination more fuel more risk in traveling near the destination less fuel required . when you relate that to trading So fuel = cash , Car = software( Zerodha PI ) , break and accelerator = buy and sell ,indicator = when to buy and sell etc WHICH ONLY COMES WITH CONSTANT PRACTICE same as perfection in driving only COMES WITH PRACTICE .
Also refer to Nithin’s answer in this post http://tradingqna.com/15760/is-intraday-trading-no-more-as-lucrative-as-before. He has answered it beautifully.
I completely agree with Sudesh. Decision making speed is the only thing that differs if your strategy is build around sound basics…