What is An Intraday Trading? Investment Information and Guide.





INTRADAY TRADING


When it comes to the stock market, it is generally thought that putting money in the market will have to wait a long time. Only then can there be better profits. but it's not like that. The market also gives investors a chance to earn bumper profits in 1 day. Buying and selling shares on the same trading day in the market is called intraday trading.

By investing money in the morning, you can earn well by the afternoon. Here shares are bought, but its purpose is not to invest but to earn profits by increasing it in one day. Keep in mind that it is not necessary that you benefit.



Intra Day Trading, as the name implies, is a day-long intraday (intra) purchase and sale.

On the day stock or stock is bought, the stock is sold before the market is closed, or if you are short selling, then close your open position by buying the stock after the market is closed, So in a way that Trading is called Intraday Trading, Intraday trading is also known by many other names -

Such as - Day Trading, MIS (Margin Intraday Square off).


How Can Intraday Trade

If you want to do day-trading in the stock market, then for this you have to open a Demat account and a trading account first. In this account, you can either trade shares by ordering a broker over the phone or you can also trade online yourself.


How do you get the benefit?


Take the example of this on 6 March 2019 i.e. on Wednesday, trading in the stock market. Wednesday proved to be a better day for those investing in shares of Dewan Housing Finance Corporation (DHFL). After adding a positive sentiment on Wednesday, the company's stock has risen by 20 per cent.


DHFL stock closed at Rs 134 on Tuesday. On Wednesday, it opened at a price of 147.40 and reached a price of Rs 160 in a short time. That is, there was a gain of 26 rupees per share. In this sense, if someone had invested Rs 50 thousand, then his amount increased to Rs 60 thousand. The benefit of 10 thousand rupees in a few hours.
 



Benefits of INTRADAY TRADING -


1. One day RISK

In intraday trading, you have to complete the deals in one day, like if you bought today, sold today, and in this way, you take only one day's risk.

2. Profit or loss

You get a profit or loss within a day, you don't have to wait much time.

3. Feature of MARGIN MONEY

In intraday trading, all brokers give their clients MARGIN MONEY for intraday trading,

For example, if you have 10 thousand rupees, and your broker is giving 10 times MARGIN MONEY, then you can buy and sell 10 times 10 thousand shares up to 1 lakh,

Now assume you had 10 thousand rupees and you bought 1 lakh shares using MARGIN MONEY, and since you have taken TRADE in intra,

Now there can be three things like this,

i. When the price of shares increases - (PRICE GO UP)
Now suppose that at the time of closing the market, if the share of 1 lakh which you had taken, the value of it has become 1 lakh 1 thousand, and if you sell it, then you gain 1 thousand,

And you now have amounted, 10 thousand which was yours and with a profit of 1 thousand i.e. total 11 thousand, (in which you have to pay broker fees and charges for buying and selling shares).

ii. When the price of shares decreases - (PRICE GO DOWN)
Now suppose that at the time of closing the market, if the share of 1 lakh which you had taken, the value of it has become 99 thousand, and you sell it, then you lose 1 thousand,

And you now have amounted, 10 thousand which was yours and together with LOSS of 1 thousand - 9 thousand, (in which you have to pay broker fees and charges for buying and selling shares).

iii. When the prices of shares are as high as you took - (NO PRICE CHANGE)
If at the time of closing the market - if there is no price change and the 1 lakh share taken, the price is only 1 lakh, and you sell it, then you have no profit,

And you are left with only amounted, 10 thousand which was yours, (in which you have to pay broker fees and charges for buying and selling shares).


Generally, people have the impression that it takes a long time to earn money. However, there is also an option of short-term earnings in the stock market. By investing money in the morning, it can be earned by evening. This is called intraday trading, in which people can start investing with less money. In this trading, the investor has to invest 20 to 30 per cent of the share price in the morning and can get the money back with profit by evening. However, there is also scope for loss.





What is day trading?


Shares are traded throughout the day in the stock market. A single share is sold and bought multiple times a day. If a stock is bought and sold on the same day, then it is called day trading. The difference between this purchase and sale is called profit.

How to choose the right stock?

1. Only trade in liquid stocks, you can choose 2 or 3 such stocks.

2. Stay away from volatile stock.


3. Buy in stocks with good correlation.


4. Before choosing shares, be sure to check the trend of the market, do not go against the trend of the market.


5. After research, invest in the shares you are confident about.


6. Before buying shares, decide in which price to buy and its target. Do make a stop loss.


7. Book a profit as soon as the goal is met.

How to Start Day Trading?


If you want to do day-trading in the stock market then some preparation will have to be done first. First of all, choose a good share broking company, where you have to open a Demat account and a trading account. In this account, you can either trade shares by ordering a broker over the phone or it can also be done online.

Read further - How much money is needed?

You can invest any amount in stock during intraday. The rule in the stock market is that on the day the stock is bought, you do not have to pay full money. Under the rule, full payment has to be made after 2 trading days of the day on which the share is purchased. Still, you have to invest 30 per cent of the share price in the beginning.

How much money is needed Under the T + 2 rule, full payment has to be made after 2 trading days of the day on which the share is purchased. In day-trading, the stock is sold on the day it is bought. Therefore, you do not have to pay full money when buying shares. If you have bought a good share and its price is 100 rupees then you have to pay 20 to 30 rupees only. How to choose for Day Trading For stock trading, always choose a stock that is strong and has good turnover. Information about this can be found by visiting the websites of www.bseindia.com and www.nseindia.com.

The best advantage of day-trading in such a stock is that if you cannot sell the shares on that day then you can sell it later with a profit. Read more- Understand from Hero MotoCorp. Understand from Hero MotoCorp, if you consider the country's largest Hero MotoCorp as an example, then how can you do de-trading during its stock fluctuations? Rate difference on September 7, 2018 - Highest rate Rs 3345.00 - Lowest rate Rs 3168.50 - Difference between the two is Rs 176.50 - Volume 6,66,688 in NSE - Volume 38,590 in BSE - How to get profit Hero MotoCorp shares went up and down by Rs 176.50 during the day.

If the investor also gets the benefit of about 100 rupees, then a profit of 10,000 rupees could be earned on the purchase of 100 shares. However, margin money has to be paid for the trade. According to experts Ajay Kejriwal, President of Choice Broking, although most of the trading in the stock market is done by day trading, new people should step into this business with caution. Initially, they should work according to the opinion of their broker. Then, when their understanding increases, who according to their own can increase this business further.



Things to note -


1. If you take a trade with a margin from a broker, in such a situation, you have to complete your deal on the same day, before the close of the market, if you do not complete the transaction yourself before the market is closed, then the stock at the time of closing the market. Whatever the price will be, your broker will sell it and take your margin money.

2. The broker has to do with the advantages or disadvantages you have, whatever margin money you have taken, you need it back before the market is closed.

3. Margin money should be used very carefully in intraday because it is such a weapon, which moves on both sides, it also gives you a good advantage, so at the same time it also takes you to great losses, and Often the first loss of a new stock market trader is in intraday.

4. Intraday Trading You should do this only when you have some better information about short term fluctuations in the stock market, but often people reverse it, Intraday Trading is the first to try.

5. The biggest reason for creating Intraday Trading has been in keeping with the ups and downs in the short term in the market.

Opinion of experts

According to experts, although most of the trading in the stock market is done by day trading, one should still trade with caution. The market trend must be seen before choosing a stock. Do not go against the trends of the market. Before buying a stock, decide in which price to buy and its target. Do make a stop loss.


(Disclaimer: We are giving information about intraday trading here, not investment advice. The stock market has its own risks, so be sure to consult experts before investing.)

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