kundkundtc18

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Oct 22, 2024

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India

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Madhya Pradesh

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Introduction
Intraday trading refers to the process of buying and selling financial securities such as stocks within the same trading session. This type of trading is short-term, meaning positions are opened and closed on the same day. Unlike long-term investing, where positions are held for months or years, intraday trading focuses on quick gains based on short-term market movements. Traders use various strategies to capitalize on market volatility to generate profits quickly.

Advantages of Intraday Trading:-
✔ Lower Capital Requirement: Intraday traders can participate in margin trading, which means they can trade larger positions with a smaller amount of capital.
Quick Profit Potential: Market volatility creates opportunities to make significant profits within a single trading session.
✔ Immediate Withdrawal: Since positions are closed the same day, traders can withdraw their money immediately without waiting for the settlement period, unlike delivery trading.
✔ More Trading Opportunities: Freed-up capital allows traders to engage in multiple trades within the same day, increasing potential opportunities.
✔ Leverage Trading: Intraday trading allows the use of leverage, depending on the broker’s margin policy. This can multiply potential profits but also increase risk.

Disadvantages of Intraday Trading:-
✔ High Risk of Losses: Quick trades can lead to hasty decisions, increasing the likelihood of errors. With higher profit potential comes the risk of faster losses if the market moves unfavorably.
✔ Market Volatility: Volatile market conditions can be unpredictable, leading to both big wins and significant losses in a short period.
✔ Impact on Psychology: Frequent losses or bad trading days can have a negative psychological impact, leading to stress and affecting mental well-being.
✔ Health Impact: Intraday trading can be stressful, especially when traders experience financial losses.

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WHAT IS INTRADAY TRADING?

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