You must have known about the share market. But to earn money in the share market, you do not have to invest money for months. You can earn money by buying or selling shares everyday! This process is called intraday trading. Let us know what is intraday trading?
What is intraday trading?
Intraday trading means buying and selling of shares on the same day. As in share marketing, shares have to be bought for less money and sold for more money. Similarly, in intraday trading, you have to buy the stock and if the money increases in a short time, you have to sell the stock on the same day.
Intraday trading is risky, no one can say whether the stock you bought will grow on that day or not. That's why most of those doing intraday trading are full time investors. Those who keep an eye on the monitor all the time, try to predict the prices of the shares. Now know what is intraday trading and how to do it.
How to do intraday trading?
To do intraday trading, you have to register in a trading firm. For this, you can create an account offline or online in any way. Any trading firm will create your demat account. With this demat account you can buy or sell your shares.
It is known to all that the intraday trader has a lot of loss. One day he earns money and the next day he loses in some share. But if we understand intraday trading properly, then money can be earned quickly in it. For this, we have to understand some basics and know how to do intraday trading.
Buy shares with high liquidity
Liquidity means having a lot of shares available in the market. With this, you will not have to wait to buy or sell shares at any time. And you will not be able to buy or sell a lot of shares at once.
Buy high volatility stocks
Volatility means that the money of the stock keeps on increasing or decreasing very quickly. In intraday trading, you can take advantage only when the money of the shares you buy keeps on increasing or decreasing in the same day. With this, whenever the share money goes above the money you bought, you will earn money by selling the share.
Be ready to lose money
The money of any stock can be reduced in a few minutes. In such a situation, your purchased stock might drown all your money. So invest the same amount of money, which you can survive even by drowning.
Sell your shares by taking your fix profit
Quite often the share money goes up more than your expected profit. But: Don't be greedy, take your profit and invest in any stock remotely.
Benefits of intraday trading
Where on the one hand there is more risk in intraday trading. And the market keeps going up and down a lot throughout the day. It also gives the option for the investor to earn good money in a short time.
Intraday trading also has many advantages such as:-
No risk after market close
Share money in the stock market can be more one day and less on the other day. But the day trader does not care about it. They only have to pay attention at the time of trading. Once the market is closed, then they do not make any profit or loss.
Daily income
In day trading, if you do not invest for long-term, then your profit or loss is daily. This is a kind of full day job, where you have to take care of the market all the time. Don't forget about investing money for a long time.
Intraday trading rules
Along with what is intraday trading, it is also important to know its rules.
The timing of share trading is from 9:15 am to 3:30 pm. You have to sell the shares you bought by 3:30 pm on that day. If you are not able to sell them for some reason, then they become delivery products. Meaning that you have to keep it in your demat account by paying the money of those shares. You can sell those shares again after the next 2-3 days.
Our opinion on this post
Intraday trading is risky. If you earn good money in it someday then there will be loss someday. My opinion is that intraday trading is for those who have good knowledge of share market.
If you have started the stock market some time ago, then invest for a long time.
In this the risk is less, the return is less, but the chances of losing money are less. We think you must have liked our post What is Intraday Trading. If you have any question, then definitely ask in the comment.