Pros and Cons of Intraday Trading

Open Free Demat Account

*T&C Apply
*T&C Apply

A trader who engages in intraday trading does the buying and selling procedures on the same day. Intraday traders are typically used by those who want to get their hands in the markets and gain experience in the finance sector.With the aid of this knowledge, they may forecast future market developments and execute trades in line with their projections. They exit all their positions before the end of the trading day; they do not hold any long-term positions.g. In this article, we will discuss the trading type as well as the benefits and drawbacks of intraday trading.

This article will help you understand the pros and cons of intraday trading. However, it’s important to remember that intraday trading will not suit all stock market investors or traders. To determine if this trading fits with your financial goals and risk tolerance, learn more about it. That said, let’s now look at the pros and cons of intraday trading.

Advantages of Intraday Trading

First, let’s talk about the advantages of intraday trading.

  • Zero overnight risk: Since you are not required to keep the shares in your demat account, intraday trading entails no overnight risk. Because every day presents a new opportunity, one of the key advantages of intraday trading is that investors don’t have to rely on a few shares to compound over the long term.
  • Short Selling: Trading intraday gives you the opportunity to profit from a negative market, as opposed to delivery trading. The name for this method is short selling.
  • Taking the market’s pulse: Another unquestionable advantage is that intraday traders are the first to learn about any shifts in sentiment or attitude in the market. The first people to feel the repercussions of any event, whether social or economic, are typically day traders. If you are able to recognise the warning signs of these situations’ right away, you can take appropriate risk management measures.
  • Possibility of earning a consistent income: The enormous gains are the sole thing driving intraday trading’s steady rise in popularity; there is no denying that it is dangerous. If you get your strategy right and adhere to strict disciple principles, you can earn decent profits.
  • The platform for margin: During intraday trading, margin can be used to trade. Because of this, you can still profit from intraday trading even if you don’t have a lot of money. You get a fivefold margin of choice.
  • Money Source: If you use the right intraday strategies and dedicate yourself to them full-time, you should have no trouble turning this into an active source of income. Some traders have made money exclusively through intraday trading. You must do an extensive study, put a lot of effort into it, and decide on the best time period for intraday trading as well as the proper strategies. Learn about intraday trading indicators and how to use them to make profitable trades.

Disadvantages of Intraday Trading

  • It is true that intraday traders don’t have to worry about overnight events. However, at the same time, some positive events can also occur overnight. Such positive events can lead to a gap up the next trading day and can be quite rewarding for traders holding a position overnight. However, day traders would never experience such advantages.
  • The cost of trading will increase as a result of more frequent trading, including commissions and fees. Paying all those additional fees could dramatically reduce your profits.
  • Investors might not have enough time for trading if it takes additional time. It goes without saying that day traders must be able to focus on the market for at least some of the day. It might be quite challenging for someone who works a full-time job from 9:00 a.m. to 5:00 p.m., if not impossible.
  • The skill of intraday trading is challenging. Additionally, you cannot leave the mobile app before terminating a position, unlike in long-term or positional trading. Although you can establish a target and stop loss before returning to your full-time job, this approach is not long-term viable. On rare occasions, a stock may reach the stop loss before reaching the target


In spite of having a number of advantages and disadvantages to intraday trading in India, newbies should proceed carefully and cautiously. Knowing your level of risk tolerance, conducting the necessary research, and having the necessary discipline to see your trading plans through are essential for becoming a successful trader. To protect yourself from market dangers when exploring intraday trading, start with a minimal trade volume. You should also ensure your technical analysis fundamentals are solid so you can make informed buy and sell decisions.

Your trading adventure will go more smoothly if you have the backing of a professional broker who has access to the correct research and cutting-edge charting tools. By using Share India on your phone, you can eliminate the drawbacks and make it very simple to understand the advantages of intraday trading. Experience low-cost next-generation brokerage services by creating a free demat and trading account. You can realize the genuine benefits of intraday trading and strategically increase your capital thanks to Share India’s user-friendly interface.

Frequently Asked Questions (FAQs)