Intraday Trading Guide

The buying and selling of stocks and other financial instruments within the same day is known as intraday trading. To put it another way, intraday trading means that all positions are squared off before the market closes, and there is no change in share ownership as a result of the trades.

Until recently, people thought that day trading was only for financial firms and professional traders. However, due to the popularity of electronic trading and margin trading, this has changed.

HOW IS INTRADAY TRADING DIFFERENT FROM REGULAR TRADING

There's only one difference between a regular trade and intraday trade. It lies in taking the delivery of the stocks.

In intraday trading, you square-off your positions the same day. So, your sell order offsets your buy order. This way, there is no transfer of ownership of shares. A regular trade gets settled over a span of days, weeks, months, or a year. So, you get delivery of the shares you bought, while the shares you sold, move out of your demat account .

WHO SHOULD BE INVOLVED IN INTRADAY TRADING?

Those who are willing to take risks and have the time to closely monitor the market and time trades.

Intraday trading offers high returns and thus may appear very appealing. However, it carries a higher risk than the delivery segment. If you have a day job that requires your full attention during most trading hours then you should opt for the TradinBells premium services that will not much affect your daily routine as we have experienced stock analysts who will constantly study the market and guide you for making smart decisions for Intraday Trading.

For starters, you must constantly monitor the market and precisely time your trades. Second, in order to make the right decisions, you must have a good understanding of technical analysis on daily charts as well as the time to perform it.

WHERE SHOULD INTRADAY TRADES BE PLACED?

You must trade in the intraday segment with the right broker, one who provides both research and technical support. Having the right tools is essential for maximising intraday trades. Given the high frequency of transactions, it is critical that you select an account with low transaction fees and quick execution.

TradingBells provides you the platform which helps you to trade smoothly to opt for the premium services. 

WHAT STOCKS SHOULD I BUY FOR INTRADAY TRADING?

In intraday trades, you must square off your position before the market closes. As a result, it is critical that you select stocks with adequate liquidity for such trades. This is why many people recommend high liquid stocks, such as large-cap stocks. This can also reduce the possibility of your trades influencing the share price of the chosen stock.

WHEN SHOULD INTRADAY TRADES BE EXECUTED?

For Intraday traders, market timing is critical. Choosing the wrong time to enter a position can mean the difference between profit and loss. One should be present at its official time which is 9.15 AM to 3.15 PM.

WHY SHOULD YOU TRY INTRADAY TRADING?

Some of the benefits of intraday trading include:

• Profitability in a fairly short amount of time
• There is no commitment. You can save your money for other frequent trades.
• A lower amount of principal is needed
• Higher returns

HOW DO YOU BEGIN?

To start trading intraday, you can open a demat account with TradingBells, TradingBells is one of the most trusted stock brokers, which allows you to trade without any second thought in mind. 

Amit Gupta, a former investment banker from Singapore, created the online discount brokerage TradingBells (Chartered Accountant & MBA).

TradingBells has a team of experts where you will get the platform and  the guidance to invest in the stock market. For more information contact our experts : 9329536100.