Choose your trading type Intra-day or positional
Tuesday April 11, 2017 , 4 min Read
In share market each and every trader has an option to choose the type of trading from the two main available option i.e, Intraday and Positional. It is not necessary to choose one of them, the trader can choose both options for the trading with his single D-mat Account. But trader has to choose his type of trading according to his investment, which will make him wealth stronger in the market.
Intraday : As the name Intraday define itself that a trader can open a position and close that position in same day. It is also known as 'Day Trading' and it is simple is that trader is allowed to buy or sell contracts or shares for the short duration of time. That means traders cannot hold the position overnight.
Positional : As the name positional define itself that a trader can open a position for the long time. It is also known as 'Buy and Hold'. In positional trading , traders can hold the position for a number of days as per the requirement. Trader can open a position for a few days, a for few months, a for few years.
As we know that every coin has two faces similarly Intraday and positional trading has its pros and cons. Here we will discuss in detail about it.
First, we talk about the advantages of Intraday trading : 1. Target : Trader aims for small target for the short period of time and can make huge profit.
2. Volume : Intraday is very popularly using a type of trade so, the volume of trader is high then trader can easily place a trade.
3. Brokerage : In intraday trading brokerage is low as a comparison of Positional.
4. Charges : No delivery in intraday.
5. Money : With low investment a trader can start his trading.
6. Faster : In intraday trading a trader can make money in a faster way as compared to Positional.
7. Risk : As the rule of intraday position of trader is closed out overnight. So, there is no need to worry about the traded position. A trader can take intraday tips from advisors.
Disadvantages of Intraday trading: 1. Experience : A trader needs guidance before trade in intraday.
2. Time : Intraday trading is very time consuming, because of short duration of period. It is very difficult to manage, if you have a full time job.
3. Stress : Intraday trading is very stressful to manage. Because, it needs concentration.
4. Mistake : Intraday trading is very risky, even a small mistake can result a huge loss.
Now the advantages of Positional or positional trading : 1. Target : Trader aims for big target for the long period of time and trader is sure about the profit.
2. Volume : There is no problem of traders volume and trader can easily manage accounts.
3. Brokerage : In Positional trading brokerage is high as compared to intraday trading.
4. Charges : Trader has to bear delivery charges.
5. Money : Trader can investment as his capacity to invest.
6. Faster : In Positional trading a trader makes money with assured return, but the return comes after a long duration of time.
7. Risk : Positional trading is very less risky, a trader can manage his ups and down very easily.
Disadvantages of Positional trading: 1. Experience : Trader need to do so much of the study before invest. Because trader is going to invest for a long time.
2. Time : Traders need to wait for the long time to get benefits or profit on his investment.
3. Stress : If trader invested in the wrong share then he needs to worry about his investment. And it will make a trader stressed.
We have discussed about the advantages and disadvantages of both Intraday and Positional trading, But a trader need to know his requirement according to his portfolio or a trader can opt share market tips .
Signature – Mahendra Rajput [DIGITAL MARKETING SPECIALIST] | Ways2Capital Is An Investment Advisory Company Which Basically Provides Recommendations for Agri tips, Nifty future tips , Stock cash tips, Currency tips, Commodity tips . Just check out http://www.ways2capital.com or call our 24/7 Customer Care Support us at +91 731 6554125, 8962000225 and Missed call no. 09699997717