Share market trading is an act of buying and selling stocks at right time in order to earn profit. There are various segments in which traders can trade. Different people have 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 following are certain benefits of day trading comparing to positional trading.
1. Day Trading does not involve overnight risk
One of the best advantages of day trading is that you do not have overnight risk at all. This is because the traders close their position during same day before the market gets closed. The profitability is not affected by good or bad news over nights. However, in positional trading, any bad event that occurs overnight may affect the profit.
2. Day trading allows to make profit in all direction
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 long duration to make profit from bullish trend. From the falling stocks, a day trader can sell short and make profit. But in case of positional trading, trader can only do short selling in futures that requires high margin.
3. Day Trading requires greater leverage
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 greatest leverage you can trade with upto Rs 2 lakh Rs in day trading. This can increase your profit by many folds.
4. Day Trading allows you to get high returns
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.
5. Day Trading has low brokerage commission
The brokerage commission of day trading is 1/10th comparing to that of positional trading. Thus for day trading you need to pay very less commission. In day trading, you can trade with more amount by simply paying the low commission.
In order to generate accurate share market tips, you must implement several technical indicators and trading strategies.
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