What is Day Trading and How it works?

Markets Rebound On Macro Boost, Global Cues - ChiniMandi

If you are a risk taking person, then Day trading is the best option you can opt for in the stock market. Day Trading is also termed as Intra Day Trading. As the name suggests, this kind of trading is limited in a single day. Day Trading plays a very crucial role as far as the stock markets of India as well as the world are concerned. Stock market is growing in leaps and bounds in India. People are investing a lump sum amount of money in the stock markets in order to gain a high percentage of returns. Day Trading or intraday trading is one of the most significant components in the domain of stock markets.

An in depth analysis of Day Trading:

Day Trading originated in the London Stock Exchange in the early 90s. It entered India in the early phase of the 21st century. The term Day Trading is associated with the assumption is securities which a dedicated trader buys and sells a monetary instrument within the same trading day. The concept has built up to dodge the unmanageable risks and negative gaps between one day’s close and the next day’s price at the time of opening of the stock market. Therefore, the time period of Day Trading is between 9:15 hrs to 3:30 hrs.

Risks in Day Trading;

Day Trading is not meant for the risk averse persons. Although Day Trading requires lots of devotion, power of speculation, intense knowledge in the stock market, there exists a thin layer of risk which cannot be avoided. In the above mentioned point of view it can be noted here that the investment in the entire stock is a risky venture. But, when it comes to the long term aspect, the maximum portion of risks can be avoided.

Nature of Investors opts for Day Trading:

There are two kinds of investors in the stock market. Those are Active investors and passive investors. Day Trading is practiced by the active investors. On the other hand, long term investment is practiced by the passive investors. The concept of Day Trading is correlated with a term namely swing trading. Swing trading is nothing but the range between the prices of a particular stock in a particular day. The movement of price from upper level to lower level or from lower level to upper level in a single day is termed as the swing. The traders have to keep a close watch in the swing of price level to optimize the gain from the Day Trading.

Conclusion:

To acquire maximum gain from the Day Trading one has to keep constant vigil on the price range in a particular stock. Trading is a key component in the stock market. Most of the multibagger stocks at https://www.webull.com are created on the basis of Day Trading.

Business

Leave a Reply

Comment
Name*
Mail*
Website*