INTRADAY TRADING CONCEPT

Intraday Trading as the name suggests itself that Buying and Selling the scrip in the same Day.

For e.g. if you buy Ashok Leyland 100 scrip in the morning at 11.30 a.m. then you have to sell it before the close of the market hours I.e. by 03.30 p.m. irrespective that you are in profit or in loss and if you fail to do so, your broker will do it self and your position will be auto square off.

One important point is that you can do reverse also in day trading I.e. sell the scrip first and then buy it back before the close of trading hours. However in the reverse process you have to buy the scrip on mandatory basis, otherwise your stock broker will do it for you but by the auction method, and you have to pay for it.

So, its imperative to take care of all those scrips which you shorted in the morning before the close of the stock market for the day. That why you will found that sometimes there is high volatility in the market post 03.00 p.m. as most of the intraday traders starts closing their positions if they didn't do it earlier, results in fast movement of the scrip in a particular direction.

That is why, it is suggested by most of the stock traders that if you are looking for positional trading or BTST/STBT or for a long trade also, buy the stocks just 01-02 min prior to market close as their is high probability of getting the stocks at good values.

Also, Intraday gives quick money, without investing or blocking the money for a day or more. also a lot of brokers gives margin for intraday, which helps the traders to buy more than the money they have in their trading account.

There are different rules provided by different investors/trader/books etc etc for doing day trading.

However, we believe that experiences are the best teachers for the people in the stock market. Nobody can teach you more then that but only if you are ready to learn.

Rest we have different posts on the Intradwww.mynsetrade.comay trading rules on the basis of our own experience and on the recommendations of other traders and book masters.

But our suggestion is do trade, learn from them, do testing, make your own rules and always follow them.