The common name for Intra Day Trading is “Day Trading”. Here, a trader acquires a stock in a given position and sells it the same day within the trading session, with or without a little margin.
Intra Day Trading.
Some special features of Intra Day trading are-
- The trader is not concerned about the movements of the market. He is only concerned about the slight rise or fall of picked up stocks.
- You have to be more alert about the sentiments of the market as you may gain or lose a great amount of money in a day.
- You have to make spontaneous decisions as there is no time to wait for the market to recover or the scrip to perform better. There is “no tomorrow” in this kind of trading.
- There are more than 1000 scrip listed at National Stock Exchange. It is practically not possible to keep a watch on all of them. Hence the wise thing would be to select a few and make a guess by observing them for a short period.
- Even if scrip has gained a few points on a given day, it might not bring profit to an intraday trader as the comparisons are made on the basis of two or more consecutive days whereas, intraday trading is all about a day’s performance.
- You can make profit with intra Day Trading only if you set a limit for yourself. Trading should be based on real facts and figures and not on emotional factors. Of course patience is needed to enjoy gains.
Enjoying the benefits
You might not enjoy greater benefits right in the first year itself. Learn and then take bigger risks without any element of regret in your trading.
“Limiting orders” and “closing out positions at the end of every day” will help you curb your losses.
Never make “day trading” your “Hobby” as it might be proven to be quite an expensive affair in terms of money and time. A “professional approach” is needed to make some profit as this job should never be taken for granted.
“Day trading” may be taken up as a “part time job”. You may devote a few hours every day or few days in a week to make some money professionally.
Day Trading should never be mistaken as a “hobby”. It calls for a lot of planning, knowledge patience, perseverance and sincerity to be a successful day trader.