What is Intraday Trading?

Intraday trading is the process of buying and selling stocks within the same day before the market closes.If you fail to do so, your broker may square-off your position, or convert it into a delivery trade. Whether a person is an experienced trader or a beginner, looking at the trends and indicators is always beneficial for intraday trading. The purpose is earning profits through the movement of market indices. It is also referred to as Day Trading by many.

Intraday Trading Indicators

• Indicators can be used to generate buy and sell the stocks.The indicators provide useful information about market trends and help you maximize your returns. looking at the trends and indicators is always beneficial for everyday trading. Let us look at some indicators.
• Moving Average : It provides information about the momentum of the market, trends in the market, the reversal of trends, and the stop loss and stop-loss points.The minimum average line shows the average closing rates of that particular stock in the given interval and helps you comprehend the ups and downs in the price and determine the flow of the stock.
• Bollinger Bands :  It provides information about the momentum of the market, trends in the market, the reversal of trends, and the stop loss and stop-loss points.The minimum average line shows the average closing rates of that particular stock in the given interval and helps you comprehend the ups and downs in the price and determine the flow of the stock.
• Relative Strength Index (RSI) : Relative Strength Index (RSI) is a momentum indicator. It ranges from 1 to 100 which indicates when the stock is overbought or oversold in the market.f the reading is above 70, it indicates an overbought market and if the reading is below 30, it is an oversold market.

Advantages

• Intraday traders can take benefit of both rising and falling market
• Provides an opportunity to work from anywhere at your comfort.
• The can earn money in both the Bearish as well as bullish trends.
• Perfect opportunity for traders to learn more and access leverages.

Disadvantages

• Day trading carries a high risk of Loosing the Capital.
• Traders are generally inclined towards making more profitable transactions while the investors focus on the quality of the trade.
• Day trading is a very risky form of trading, which can result in considerable financial losses over a short period of time.