INTRADAY TRADING VS LONG TERM TRADING IN STOCK MARKET
INTRADAY TRADING: By Intraday trading, we mean purchasing and selling the stocks on the same day. Shares bought under intraday or MIS order will not be visible in your Demat Account. Many of us love to make quick gains or profits that's why we like intraday trading. Intraday trading is also known as Day Trading.
LONG TERM TRADING: Long Term Trading ranges from a few months to a few years. But it can give you unbelievable gains if you choose the right shares.
Lets first discuss Day Trading or Intraday Trading:
If you buy shares under the Intraday order you have to sell them on the same day or they will
automatically get squared off at the closing time of the market or it will be delivered to your Demat account or your broker's pool account depending upon the RULES AND REGULATIONS of your BROKER. A short term trade can give you smart profits within a minute or 10 minutes. It is also known as "MIS" (Marginal Intraday Square off) in Zerodha. Intraday Trading needs quick decision making because it can give you smart profits in a minute and can make you lose half of your investments in a short time. So, to prevent your losses always trade with a "STOPP LOSS". It will minimize your losses. Most of the trading apps or brokers provide margins for intraday trading.
LONG TERM TRADING:
Long-term trades range within few months to a year or a few years. Long term trading needs patience. But it can double your investments in some years. It is less risky as compared to short terms trading. For long term trading, you have to be financially strong because no broker will provide you margins for long term trades. For long term trading, you have to take delivery of the shares, which means that the shares will be delivered to your Demat Account.
I am personally engaged in intraday trading because I like to make profits in a short time.
In my next blog, I will tell you how to do intraday trading in Zerodha and will provide some intraday trading tips & intraday trading strategies according to the Indian Stock Market.


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