Thursday, September 27, 2007

Intraday trading









Intraday trading means nothing but within the day, or within the single day in other words it has been called as day trading,means that the trading done on a single day.

Normally an intraday trading trader try to make a fortune according to the market swing in within the day or within some hours.The main idea of intraday trading is to achieve as much as a profit in daily basis consistently.To do intraday trading one must watch the market very carefully from the time it opens and how it goes, when day progresses,so that he can pick the amount of fluctuations in the price so that he can decide where to buy or where to sell, by watching the market fluctuation only this can be done.Intraday trading trader should also make a note of the opening price, its highest reached on the day, the lowest reached on the day and the closing price, this will give him an idea how it progresses.This will give a clear idea about the market where to buy and where to sell even if it is not going to help on the same day but it will help for the next day, how the trend will move.
The next factor that is to be observed in intraday trading is the demand and supply, this is nothing but how many are ready to sell and how many are ready to buy because in the intraday trading this is the main key factor that will decide the price of the share.these two are directly related that is when there are more number of sellers and less number of buyers eventually the price of the share will fall, vice versa when there is more number of buyers and less number of sellers eventually the price is going to rise.keeping a close watch on this factor can help in predicting whether the price is going to go up or low.
Basically when you decide to do intra day trading, where if you buy you got to sell on the same day and vice versa where if you sell you got to buy on the same day.Keeping this in mind when you indulge in intra day trading the above said factors are the most important thumb rule for the trading.
The merrits of intra day trading is normally one will get margin trading which is also differ according to the brokers,and this margin trading is only possible in intra day trading and not possible in delivery trading.
The next thing in intraday trading, is the brokerage amount paid to the brokers is less when compared to the amount paid when we are doing other sort of trading .
There is a very big advantage in the intra day trading is short sell which nothing but selling the shares when the price is going down and buying it again when it is more low, this is not possible in other trading.
But in intra day trading when any trading has started by the trader that should be completed within the day that too before the market closes.
Generally, the chances of profit that are seen in intra day trading there is also the same chances of losing, but this always in the trading sector, at any point of time you cannot predict the market and its fluctuations, since the amount of risk is always there.

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