Every trader in the stock market has the option of choosing between two different types of trading: intraday and positional trading. It is not necessary to choose one of them; the trader can use his single Demat Account to trade both options. However, a trader must choose his trading style based on his investment, which will increase his wealth in the market.
Purchasing and selling shares on the same day is referred to as intraday trading. It is accomplished through the use of internet trading platforms. If someone wants to acquire stock in a company, they must specifically say 'intraday' on the platform's interface. Before the market shuts down, the user can buy and sell the same amount of stocks in the same firm on the same day. The goal is to profit from market indexes moving up and down. Many people refer to it as "day trading."
If you are a long-term investor, the stock market can provide you with excellent profits. However, they can assist you in making money in the short run.
What is Intraday Trading Explained here
Position trading is a profit-making method in which a trading position is held for a lengthy time (usually weeks or months). In position trading, a trader would generally consider long-term and hold the position for a long time, regardless of short-term gyrations. For instance, the positions could belong to (purchasing the asset first) and (selling the item afterwards) (selling the asset first). Traders typically utilize long-term charts (weekly, monthly) to initiate trading positions in this type of trading, which is also known as trend following.
The table below represents the distinctions between intraday and positional trading:
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Intraday Trading |
Positional Trading |
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Benefits |
Benefits of Intraday Trading:-
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Benefits of Positional Trading:-
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Risks |
Risks of Intraday Trading:-
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Risks of Position Trading Strategy:-
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Time Frame |
Intraday Trading Time-Frame:- This trading requires a consistent watch and sharp eyes to get opportunities as soon as they get visible on the screen. While speaking about day trading, it is clear that any investor in this type of trading needs to square off the position on that day of buying and selling shares. BSE and NSE function between 9:15 am and 3:30 pm. This means you need to be active in the market starting from the time the market opens. |
Positional Trading Time-Frame:- The ideal time to trade in the Indian stock market would be from 9:15 am to 3:30 pm for any form of trading. The best time frame for positional trading is when you can try to open positions when a strong bullish trend is observed. You could place the order when the trends seem to be on an uptrend. You could also place orders aftermarket and even during market hours. |
To Know Stock Market Timings here for BSE and NSE
When you have a limited capital budget - intraday trading is the way to go, as for positional trading - it takes a larger investment. The risk-bearing capacity is the second parameter. Intraday trading, as previously said, is a high-risk strategy.
When you are an investor who is willing to accept the high level of risk associated with intraday trading - you should do so; otherwise, positional trading offers significantly reduced dangers. The time is the third and last parameter for selecting the right kind of trading. When you are a full-time trader who spends the entire day on the computer screen, intraday is the way to go.