Intraday trading involves making dozens of trades in a single day, based on technical analysis and sophisticated charting systems. The main goal of the day trader is to make a living from trading stocks. They believe in making small profits on numerous trades and thus minimizing losses on unprofitable trades. In this type of trading, traders typically do not keep any positions or own any securities overnight.
Day trading needs low margins and offers more leverage on your trading capital. Large numbers of brokers offer 100 percent leverage and this means that you are allowed to trade with more amount than you actually hold in your account at present. Suppose you are having Rs 1 lakh in your account but with the greatest leverage you can trade with up to Rs 2 lakh Rs in day trading. This can increase your profit by many folds.
If you trade with accurate intraday tips and be disciplined while trade then you get good returns. In day trading, all you need to do is to learn how to handle the intraday fluctuations of the market.
So if you are also seeking to get high returns by deal then you must go for day trading. But it is recommended to take the help of renowned advisory firm so that you do not suffer from losses and you minimize the risk.
One of the biggest lures of day deal is latent for stunning profits. However, in order to make it possible for the rare individual, you must possess certain qualities. Some of the needed qualities are like decisiveness, discipline and diligence that are required to be a successful day trader. Apart from these qualities, you also need to focus on working alone.
If you want to be a successful day trader then you must be independent of the whims of corporate bigwigs. You should have a flexible working schedule so that you can take time off whenever needed. The benefit of deal fulltime is that you work at your own pace, unlike someone on the corporate treadmill. Though all the day traders love the thrill of the market and other professional’s day in and day out.
You must never think that you cannot try out Intraday trading on your own. Learn from your mistakes and only a few things you need to keep in mind is never risked more than 2% of your trading capital on every trade. The study proves that no one will go bust in the deal if they trade with proper risk management.