Advantage and Disadvantage of Intraday Trading

Most people trade in stock to make money, earning profits, and the primary method is by earning profits. But they are other secondary forms through which we can earn money in the stock market. It is through dividends and bonus shares, but the trader mostly focuses on earning money through trading by buying stocks at a lower price and selling them at a higher price.

A stock market is an inclusive place accommodating all types of investors, Weather he is a day trader who predicts the price movement of stock by using technical indicators. If we are looking for a long-term trader who focuses on company growth and payment of company, it is important to know how to select stocks for Intraday and delivery trading. Every type of trading has its approach, skill, and mindset.

What is Intraday and delivery Trading?

Intraday and delivery are two types of approaches that have their trading style, which carries specific features, upsides, and downsides.

Between Intraday Trading and Delivery Trading, their one other Type of Trading which A trader has, which is BTST trading Know in detail about what is btst trading?

The trader applies these trading strategies depending on various factors such as his knowledge of the market, risk requirements, and many other factors based on which trader decides between intraday VS delivery and which is better for him.

Know the Difference Between Intraday and Delivery

Intraday Trading

In Intraday Trading, shares are bought and sold on the same day, and you have to sell your shares before the market closes at 3:30 pm. In intraday Trading. You cannot take your shares the next day. The end goal of intraday trading is to make profits within a limited time frame.

Advantages of Intraday Trading

1.. Margin Facility: One of the biggest benefits of Intraday trading is you get the facility to trade more than your capital by giving you a margin facility. And this means you can buy shares more than capital, and a broker will provide this facility.

With the margin facility, a trader can buy more share quantity that he could not afford earlier. This allows the trader to leverage his position in the market.

1. Taking no risks overnight: In intraday trading, all the buy and selling of stock should be settled by the same day only because it cannot be carried forward to the next trading day. Through which the overnight news cannot harm stock prices.
2. Learning: Intraday can be performed with less capital, so if you are a beginner in the stock market, you can learn the trade and tricks of intraday trading.
3. Benefits from short-term market volatility: in the short term duration, the stock market can be highly volatile. If you are an experienced trader and know the intraday trading strategy in this case, you can book huge profits in the short term duration.

Disadvantages of Intraday trading

1.. Riskier proposition

In a short duration, the stock market is very volatile, and intraday transactions have to be settled before the market close, and opportunities for the trader to earn a profit are very few. Sometimes the market is also not able to recover its down position.

1. Requires Constant Tracking: Intraday Trading requires constant monitoring and tracking of stock because the market is volatile, and you always have to stay attentive during that period.
2. No Additional Benefits: Intraday Trader can not be the owner of the stocks that they are trading in. The trader just simply enjoys the price movement, and Intraday Traders does not enjoy the additional benefits of the stock, such as dividend payment and the issue of bonus shares.

4.. Volatility: In intraday Trading, the market volatility is very high in short-term time duration compared to long-term, which is very risky.

Financial market guide, keep you updated with the latest financial market News. and provide you with different investment ways. learn how to select stocks with technical analysis course