Intraday Trading in The Stock Market

Trading is a process of buying stocks at a particular price when prices are low and selling it at the highest price with respect to time. There are many types of trading like Intraday trading, Swing trading and Trend trading etc. In this article, we will mainly focus on Intraday trading. One can do the intraday trading based on the Stock Option Tips or Option Trading Tips from expert analysts.

What is Intraday Trading?
Intraday trading is a method of buying and selling of stocks/securities within the same day. In this method, the trader takes a position in the market with a view of squaring that position at the end of the day. Here traders buy stock, not for the investment purpose but to earn profits by saddling the movement of stocks. This is how traders earn a profit by the fluctuations in prices.

Insight to Intraday Trading:
 An Intraday trader generally trades several times a day. They look for the fractions of a point to the few points per trade, but here one doesn't know who close out their positions at the end of the day.
The main motive of an intraday trader is to capitalize on price movement in the same day. A day trader can hold positions for only a few seconds or few minutes or sometimes overnight. Intraday trading is the safest way to trade, so that risks of losses will be low.
The Intraday trading can be further divided into following types:

1. Scalpers: This type of trading involves the rapid and repeated buying and selling of a great volume of stocks within seconds or in few minutes. The motive behind this is to earn a per-share profit on each transaction so that risk will become low.

2. Momentum Traders: This type of intraday trading involves identifying and trading the stocks which are in a moving pattern during the whole day, the motive behind this trading is to buy at low and to sell at high.

How to earn a profit in intraday trading?
The Intraday traders will always face innate risks which exist in the stock markets. Price volatility and daily volume are some factors which play a crucial role in the stocks chosen for daily trading. The intraday traders must not take the risk over two percent of their total trading capital in a single trade.

A- Tips for Intraday Traders
B- Choose only two to three liquid shares.
C- Ascertain entry and target prices.
D- Try to book your profit when you have achieved your target.
E- Time analysis is the important point to keep in mind.
F- Avoid becoming Investor.
G- The stock should be chosen correctly, etc.

Advantages of Intraday Trading:

1. Zero overnight risk:
As positions are closed before the end of the trading day, therefore news and event will not affect your portfolio.

2. Increased Leverage:
 The intraday traders have a chance of greater leverage on trading capital because of low margin as their trades are closed in the same market day.

3. Profit in any market direction:
The potential to gain profits when markets fall during the trading day is useful during the bearish conditions.

Thus, we come to the conclusion that one can trade on the basis of Stock Option Tips or Option Trading Tips from the analysts.