Intraday trading: It is one type of investing practice in stock markets involving both the deals, buying and selling on the same day.
You now! Many investors are now living by stock trading? They are depending on possible profits earning on intraday market sessions.
In intraday trading ‘Bought shares, should be returned (by selling) on the same day before market closing. Likewise shorted shares (selling shares actually without having them) should be bought on same day. General the brokerage fee for intraday transactions is much less than delivery deals.
Generally Intraday investors pick actively trading stocks, which in sense swing frequently; so that credibility of profits will be more. Even falling stocks are also profitable in intraday trading as we can ‘short sell shares at high price and return by buying at low price’.
Characteristic feature in intraday trading is risk. Blue chip or index stocks definitely will return good profits in long term, but they also swing widely on intraday sessions. So even a exclusive blue chip or index stock investor, may also get huge losses on intraday trading.
Intraday trading was generally done basing on ‘technical points of targets and stop losses’ following either general market trend or swing market. Some investor’s even trade basing on rumors.
Now a days intraday investors are conjuring more to enter derivatives, as profit opportunity is unlimited within a single session. Derivatives are also useful in day tradings to protect our investments.
In fact, intraday investments are no way useful for companies, the middleman’s’ benefiting by intraday volumes are brokerages and stock exchanges.
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