Intraday Trading – Trading POC

Choosing between these two types of trading practices is essentially like choosing between the traditional and the modern. Offline trading has been done in India and the world even before online trading was invented. In fact, it was the only type of trading back then. However, with the advent of the internet, things changed. Seeing that the internet can be put to great business uses, online practices came into vogue, presenting an alternative to offline trading.
Soon the trading system was divided into these two categories. So much so, that nowadays almost everyone is following the middle path and engaging in some or other form of online business along with the conventional offline trading. There are of course tech savvy enthusiastic traders who carry on the entire trading online. Also, of course, there are people who still religiously believe in engaging only in the traditional form of trading, i.e. offline trading. Whether you choose to stay in any of the extremes, or follow the middle path, presented here are the basic parameters of both types of trading. This info would be useful if you are considering trading as career.
What are the different aspects of online transactions?
The different aspects of online trading are,

Some trading are only carried out online like the latest in trading scenario, the algorithmic trading

Some trading like commodity trading is primarily carried out online, but there are offline aspects as well

The online business gives the traders the freedom of carrying out the business from anywhere, even on the move, thus saving a lot of time from the busy schedule

It can also be done through mobile devices with internet connectivity

The trader has to open a demat account with his/her broker. The trading is limited to only the amount in this trading account.

The real time business in the online format is highly exciting

The cost of brokerage is generally less than offline trading

Almost everyone who is new to trading as career is trained in online business rather than the offline version
What are the different aspects of an offline trading system?

The various aspects of an offline trading practice are mentioned below.

Trader cannot view the real time quotes

Personally visit or call the brokerage firm to carry the trade

Flexible trading limits

Higher brokerage expenditure

Fund transfer via cheque

The trade is confirmed via telephone

Apprehension among traders about the security of carrying out online transactions
India based Sahajmoney has a proven track record in assisting the Indian traders for Online Trading for Trading Commodity, Intraday Trading, Forex Trading in India etc.

In Stock Market Investors and Traders are defined differently although most of the people remain confused and use these terms interchangeably. People involved in Intraday Trading are referred as traders or day traders and those who put their money in stock market for longer period of time to earn profit later by selling the shares are called investors.
Trading in stock market is not less then a bettle if you are going to trade in market you can not afford to go without permission. One has to see the fundamentals of the company in which they are planning to trade, intraday trading involves greater risk and the intraday trader has to follow the best stock tips to see the technical view of the company. The intraday traders should be fast and quick while taking decisions during online trading sessions, as markets are very volatile and changes levels quickly.
So it is improtant to know the advantages and disadvantages of intraday trading
Advantages:
1. No worry about news that come at night
2. More efficient profit management
3. An enforced exit eliminates losses
4. Working with high price fluctuations
5. Positive emotions drive positive attitude
6. Trading in liquid markets
Disadvantages:
1. Intraday fluctuations may be essential raising the degree of risk
2. Constant attention is needed
3. Neglecting the long-term trend
4. Need in constantly updated quote flow
5. P&L are restricted
6. Intraday strategy requires active trading which raise costs
7. Only well-disciplined trader may succeed.
Rules of intra-day trading
Invest what you can afford to lose
Intra-day trading carries more risk than investing in stocks. Invest only the amount that you can afford to lose. An unexpected movement can wipe out your entire investment in a few minutes. In January 2009, the Satyam Computer scrip fell more than 80% from Rs 188 to Rs 31 in one day. If it is a leveraged position, you could lose more than you invested.
Choose highly liquid shares
Day traders must square their positions at the end of the trading session. This is easy if you are trading in large-cap, index-based stocks, which are very liquid and get traded in large volumes every day.
Research watch list thoroughly
You should know about all forthcoming corporate actions (stock splits, bonuses, dividends, result dates, mergers, etc) as well as technical levels of the stock.
Fix entry price and target levels
Before you buy, fix your entry price and target level and stick to your decision do no change it over the little movement to the market. Just stick to your levels
Use stop losses to contain impact
A stop loss is a trigger for selling shares if the price moves beyond a specified limit. It helps the buyer limit his losses in case the share belies his expectations and moves down (or up). Suppose you buy 20 shares of Reliance at Rs 940 each and set a stop loss of Rs 920. If the share falls to Rs 920, your shares will be sold. In this manner, your losses will be curtailed even if the share drops to Rs 900. A stop loss takes the emotions out of the decision to sell.

Tag: Intraday Trading

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