Advantages and Disadvantages of Intraday Trading
Advantages Of Intraday Trading
No need to pay full price of the stock while trading. You need to pay only a part amount, this amount will be differ as per the brokers. For example, if you have Rs. 10000/- you can able to buy stocks upto Rs.100000/-Â (1Â Lakh). So, you can gain more by investing less.
Intraday trading will give you profit with falling stock price too. You need to sell the stock at higher price(you don’t need to buy it before, you can directly sell them) and buy (cover the order) the stock at lower price. Selling and buying or buying and selling must be closed before the closing of the market. Intraday trading time will be differ with broker policies. Some brokers may urge to close(cover) the order before 30 mins or 40 mins of the market close.
The brokerage of the intraday trading is always lower than the delivery trading.
You will get your money(with profit or loss) back after market closes every day. So you can start a fresh trading in next morning.
Disadvantages Of Intraday Trading
The biggest disadvantage of intraday trading is the time frame. You have to sell the stocks within a day. So, if the stock loses price you are sure to loose money
Solution: You can convert Intraday stocks to delivery stocks. But you may need to pay the full amount.(Because you have paid a part amount in Intraday for that stock).
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September 21st, 2008 at 5:59 pm
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Tomorrow i.e. 31st July’08 the day when the Inflation data will come.Inflation from the past successive weeks is keep on increasing,this has now become a major factor deciding the following days movement of Indian Stock Market.RBI and the government is taking steps to control it.Inflation has to be kept under control for the interest of the economy, Indian Stock Market is governed by lots of factors one including them is Inflation that has also to be kept in mind always
Sectors giving good return over period of time includes:
1.INFRASTRUCTURE
2.PHARMA
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May 21st, 2010 at 8:44 pm
This information is good for investor and traders,
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February 5th, 2011 at 12:24 am
Pls let me know the disadvantges of Intraday trading in details and the risks involved in intraday trading . Pls send it in details aas i am a novice in trading .