Research & Analysis
Intraday Trading

What is Intraday Trading ?

Intraday trading, also known as day trading, is a type of trading strategy in which an investor buys and sells securities within the same trading day, with the aim of profiting from short-term price fluctuations. Intraday traders do not hold positions overnight and aim to close all their positions before the end of the trading day.

The goal of intraday trading is to take advantage of small price movements in highly liquid stocks, which can offer opportunities for quick profits. Intraday traders use technical analysis, such as chart patterns and indicators, to identify potential entry and exit points.

Intraday trading can be risky, as the price of a stock can fluctuate significantly in a short period of time, and it can be difficult to predict these movements accurately. Traders may use leverage to amplify their gains, but this can also increase their losses.

It’s important for intraday traders to have a solid understanding of the market and the stocks they are trading, as well as a well-defined trading plan and risk management strategy. They should also be aware of the costs associated with frequent trading, such as commissions and fees, which can eat into their profits.