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Choosing to start intraday trading can be a tough decision- one which will be judged by many people. If you suggest to anyone that you wish to start trading in the stock markets as an intraday trader, most of the people you will encounter will tell you that it is a very stupid decision. Very few people in India, actually see stock markets as a way of earning a regular income. Most people consider it gambling and a mind006Cess sport
However, those who have been able to earn a steady and regular income from stock markets through intraday trading will be able to tell you that investing money in the stock markets is the smartest decision they have taken regarding their money.
So which category of people should you listen to?
As per our view, if you have the basic conditions in your favor, such as a risk taking capacity, sufficient investment capital, and the support of an experienced and certified investment advisor, then intraday trading in the stock markets can be the smartest decision for you as you will be able to earn money by sitting at home and by being your own boss, working in your comfort zone without having to be accountable to anyone but yourself.
Let’s look at some more reasons why we feel that intraday trading is a smart decision?
Table Of Content
Choosing Intraday Trading: Smart or Stupid Decision?
1. Trade with a Small Amount of Capital as Well Called Margin
One of the factors which makes intraday trading a smart choice is that you can trade using a limited amount in your demat account. Stock brokers will provide you with margin which means that you can buy or sell stocks worth a huge amount by paying a small percentage of it. Hence, it becomes possible for an intraday trader to buy stocks worth Rs. 100 using just Rs. 10 through intraday trading.
2. Earn Money When Everyone else is Losing it
In a bear market or a downward market, an intraday trader can earn money by short selling, which no other investor can. Intraday traders can use the method of ‘short-selling’ which means first selling a stock and then buying the same stock in the same quantity later to complete the cycle of one transaction. This allows you to earn profits in falling markets as well.
3. Don’t Need to Worry About any Sudden Overnight Movements
In intraday trading when the markets close for the day, all your profits or your invested capital (whatever is left of it) is deposited in your account as cash. You can withdraw it and spend it as per your wish, not having to wait till the next day either. A new day gives you a fresh start and you can forget the past wins and losses and start afresh. There is no risk of any sudden happenings overnight which might affect your investment in the markets since you have withdrawn all your capital at market closing time.
4. Intraday Trading can be a Regular Source of Income
If you are an experience intraday trader and book profitable trades on a regular basis, then intraday trading can help you get a regular source of income to meet your daily expenses. Unlike long term investments, you do not have to wait for the volatility to subside and the prices to start moving up again to book your profits. You can withdraw your profits as hard cash every day.
5. You can be Your Own Boss
Intraday trading is similar to running a business where you need to take informed and well researched decisions on a daily basis. If you have a guide like an investment advisor to help you in this journey, then this too becomes easy. You do not need to depend on anyone or follow anyone’s orders to be successful and earn money. Especially with the online trading platforms and self trading apps having been launched by various broking houses, it has become all the more easy and convenient to start trading and become your own boss.
Conclusion
So as it is clear from the above points, that Intraday trading in stock markets can be a smart choice for you if you have enough time to spare during market hours, have risk taking capacity and a sizeable investment capital. CapitalVia Global Research Limited- Investment Advisor can help you greatly in taking on this journey in intraday trading by specially handholding you and making you understand the nuances of the stock markets by giving you training session on the markets.
However, if you are a working in a corporate or salaried job which takes up a longer time of your day and you cannot spare time for the stock markets, then probably intraday trading is not the best option for you and you can explore trading in the stock markets through other strategies for example swing trading or short term investment strategies. CapitalVia has a range of options and services for short term traders in the stock markets.
Disclaimer : All content provided is for informational purposes only, and shall not be relied upon as financial/investment advice. Neither CapitalVia nor its employees have a holding or any sort of interest in any stock which is recommended. Recommendations shared, if any, are only shared for information purposes. Although the best efforts have been made to ensure all information is accurate and up to date, occasionally unintended errors or misprints may occur.
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