Day trading or intraday trading is basically buying and selling of security within a single trading. To become a intraday trader, you need to understand about intraday trading first. So that you will be able to invest and can earn good profit on your investment. Intraday tips are also very useful for the intraday traders, this helps them to invest with minimum chances of risk.
Intraday trading can take place in any market, but it is most commonly done in foreign exchange market i.e, forex and stock market. They use high amount of investment strategy of using borrowed money and short-term trading strategies to capitalize on small price movement. We can also say that, when the positions are closed and opened on the same day in the financial market then it is referred to as Intraday trading. In intraday trading the traders take advantages of the fluctuations in stock prices. The risk in intraday trading is very high and at the same time the profit is also very high.
There are many benefits of investing in intraday trading.
1. No overnight risk: The main benefit of intraday trading is that you have zero over night risk. In intraday trading you can close your position prior to the end of trading day and due to this your profitability is not affected by good or bad news and events that happens during the non trading hours.
2. Day traders can make profit in any direction: Intraday trading is very fruitful where traders can take benefit of both rising and falling market. The traders can do short selling to make profit from the falling stocks.
3. Daily income: In intraday trading the traders make daily income. Most of the traders and investors can earn above the salaried job. The intraday traders do daily investments and get daily income. Whereas in long-term trade these are not possible and the traders rely on long term income. Intraday trading is for those who wants to earn daily and can make it as their primary job.
4. Quadruple leverage: In intraday trading there is a law which make the day traders quite in a good position. As per the law, when a day trader is able to manage a balance of $25,000 in their account dedicated to brokerage, in such cases they get access to quadruple leverage.
5. High Returns: If the proper intraday strategies are implemented with discipline by the traders, then good profit can be made. If you wish to earn good returns, then you have to learn to handle the intraday fluctuations of the market.
6. Less Risky: As discussed above that in intraday trading you are not vulnerable to overnight risk. Hence, with proper money management and discipline you are less exposed to risk comparing to other form of trading. Your losses are very limited in intraday trading.
7. You can do more trades: Intraday trading gives you the opportunities to do more trade. You have more leverage in intraday trading and you can do more trade. You are able to to make quick exits on profit or loss in case of stop outs and can take entry into another good stock.
Along with intrading trading, commodity trading can also be done and the traders can earn more profit by taking commodity tips. By this they will be aware with the market current status and thus can invest to earn more.
Keywords: Intraday tips, commodity tips
By: Nayna Bhardwaj
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