Benefits of Intraday Trading

Intraday trading, often called "day trading," is the practice of opening and closing a position in any financial market on the same day. Day traders profit from small and quick fluctuations in stock prices. This contrasts with long-term investing, where a position may be held for months or years. The risks in day trading are extremely high, but the potential rewards are also great.

It seemingly looks to be the simplest and the most rewarding. But in intraday trading one has to be very fast and quick and have to be on your toes always, so there are certain rules which one has to keep in mind while doing day trading in Indian stock market or in any stock exchange.

Day trading is characterized by multiple intra-day trades executed to take advantage of small price movements in stock. stocks are generally held for minutes or hours and generally positions are closed out overnight for small profits or losses. In the day trading study, a day trader is described as "an individual who conducts inta-day trading in a focused and consistent manner with a primary goal of earning a living through the profits derived from trading strategy".
     
ADVANTAGES:

• Trading opportunities are  more frequent, if you can trade with daily chart, you will see similar trades more often on intraday chart
• You can cut losses very quickly.
• There is no overnight risk if a major piece of news hits your market after the close.
• Day traders who have developed a successful trading strategy can rely on it for their primary income. 
  
  
  

HELPFUL POINTS FOR INTRA DAY TRADING:

• Keep your volume constant e.g.: if you trade in five lots of nifty future then trade in five lots only.
• Being contrarians is very important while trading intraday.
• Stop loss is a must while trading intraday.
• Always trade in very liquid stocks i.e. which have very high volume because as entry and exit can be very fast in such stocks.
• It is not necessary that a stock which is weak today during intraday trading might be weak tomorrow also, simultaneously if a stock is strong today might not be strong tomorrow

There are lot many tools and indicators available for intraday trade. But it is advisable let professionals do all these study.