InvestorQ : What exactly do we mean by Intraday Trading?
Anu Biswas made post

What exactly do we mean by Intraday Trading?

Answer
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Khushi Patel answered.
2 years ago


Unlike an equity investor who buys stocks with the intention to invest, intraday trading is about buying and selling your holdings during the same trading day. It has to be close out in 6 hours of a trading tie. The main objective of the trader is to make profits by taking the advantage of stock market movements within the same day. It is all about intraday momentum. Hence, the level of profit depends on the extent of fluctuations in the prices of the stocks that the trader holds in his portfolio. The best way to perform intraday trading, you need to have an active online trading account. Intraday trading involves the buy/sell orders being specified by the person who is involved in trading. The basic purpose of initiating orders is to close them or square off before the closing of the stock market. So it is about capturing the momentum appropriately.
One of the major questions that every intraday trader needs to address is “how to find the right stock for intraday trading”. That is where intraday trading begins. After all, everything boils down to holding the right stocks when it’s about making profits in intraday trading. There are a number of variables involved here. When you are picking stocks for trading, you need to keep a number of factors in mind i.e. qualitative as well as quantitative. You may come across hundreds of listed shares in the market but not every share is suitable for intraday trading. That is where stock selection based on volumes, tick sizes and momentum becomes so important. For example, intraday trading in Tata Steel is understandable but intraday trading in PC Jewellers or Vakrangee can be awfully risky.