Share market trading is an act of buying and selling stocks at right time in order to earn a profit. There are various segments in which traders can trade. Different people have a different choice when it comes to trading. One of the most beneficial trading segment is day trading. However, there is high risk in day trading but the following are certain benefits of day trading comparing to positional trading.
One of the best advantages of day trading is that you do not have an overnight risk at all. This is because the traders close their position during the same day before the market gets closed. The profitability is not affected by good or bad news overnights. However, in positional trading, any bad event that occurs overnight may affect the profit.
Day traders are allowed to grab the benefit of both rising as well as falling market. However, the positional traders or long term traders cannot hold their stocks for a long duration to make a profit from the bullish trend. From the falling stocks, a day trader can sell short and make a profit. But in case of positional trading, the trader can only do short selling in futures that requires high margin.
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 trading 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. Get free intraday tips from Money Classic Research.
Money Classic Research is one of the best share market tips providers in Indore that helps you in accomplishing fat profits. It leads the way in providing accurate share market tips that are outcomes of in-depth technical and fundamental analysis of the market. The committed team of Money Classic Research well analyzes the market and thus generates an extensive range of share market tips.