Is Day Trading a Good Decision or Bad? – What Are its Disadvantages
The intraday trading means “trading in the day” or “day trading”. The intraday trading is one of the most excellent trading strategies in the stock market, which helps day traders to make money in share market of India. A day trader can take the advantage of both growing and falling market. This advantage cannot be extended to long-term investors who hold their shares for a longer period to make more profit. Day traders can make profit by making small sales in falling stocks. On another hand, positional traders can only do small sales in futures, for which the higher margin is expected. However, Risk of losing your money is high and this is the only disadvantages of trading in intraday. You also need to learn to handle the intraday fluctuations of the market. It is important to have some knowledge about trading before stepping into day trading. The stock reacts on news based information. Thus, it is possible that you may not get even chance to book profit A number of traders choose different types of trading according to their preference. But in day trading, the buying and selling of stocks will happen on the same day. Out of many advantages, one of the best benefits of day trading is that it eliminates the overnight risk for you. Here, you can close your position before the end of the trading day, due to which your profitability will not be affected by good or bad news and events occurring during non- trading hours. For positional traders, there are lots of chances of disappear from profit due to the risk of any bad overnight event. Day traders never get affected due to any tragedy or disaster in local or global stock markets.