Friday, June 24, 2022

WHICH IS BETTER : INTRADAY OR POSITIONAL TRADING ?

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In the stock market, traders have an opportunity to choose the type of trading from the two main options available – intraday and position. Traders can choose either one of the options or both.
As the name suggests, intraday trading refers to entering and exiting positions on the same day. It aims to capture very small movements, typically 1 percent or less. On the other hand, position trading involves entering into a position one day and exiting it a few days or weeks later. Sometimes a position trader can exit his position even after a few months.The amount of position trading can vary from trader to trader, but a position trader typically aims to capture 5-30 percent type moves. However, the percentages may vary depending on the volatility of the security in question.

BENEFITS OF INTRADAY TRADING
· For a short period of time, traders aim for a small target and can make big profits.
· Intraday uses a form of trade very frequently, because the volume of the trader is high, so that the trader can easily position a trade.
· Brokerage: As a contrast with Positional, brokerage is low in intraday trading.
· A trader can make money in intraday trading in a quicker way.
· A trader can start his trade with a low investment.
Cons
· A trader requires adequate guidance and knowledge before trading in Intra-day.
· Intraday trading, because of the short length of the day, takes a very long time. If you have a full-time job, it is very hard to handle.
· The handling of intraday trading is very stressful. Since concentration is needed.
· Intraday trading is very dangerous, a big loss can result even from a small mistake.

BENEFITS OF POSITIONAL TRADING
· It is less risky as compared to Intra-day trading
· They are capable of producing higher percentage returns
· They offer a range of strategic choices.
Cons
· Before investing, traders have to do too much research. Since the trader will be investing for a long time.
· Traders need to wait a long time to get their investment rewards or gains.
· He has to think about his investment if the trader has invested in the wrong share. And it'll result in bringing stress on a trader.

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