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Pros and Cons of Intraday Trading

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A trader who engages in intraday trading does the buying and selling procedures on the same day. Intraday trading is typically done 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. In this article, we will discuss 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 one’s financial goals and risk tolerance, learn more about it.

Advantages of Intraday Trading

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

  • Zero Overnight Risk: 

Since one is not required to keep the shares in a 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 allows one to borrow shares and sell them in an open market in a single day, 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 one can recognise the warning signs of these situations right away, they can take appropriate risk management measures.

  • Liquidity:

Intraday Trading offers high liquidity that allows traders to enter and exit positions easily, especially in highly liquid markets. 

  • Flexibility

Traders can quickly adapt to market changes and change their strategies accordingly. Intraday traders have an edge over delivery traders because they can recognise short-term opportunities easily. 

Disadvantages of Intraday Trading

  • Missing Out on Overnight Changes:

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.

  • Increased Fees and Commissions:

The cost of trading will increase as a result of more frequent trading, including commissions and fees. 

  • Requires Time Commitment:

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.

  • Requires Skills and Experience:

The skill of intraday trading is challenging. Additionally, one cannot leave the mobile app before terminating a position, unlike in long-term or positional trading. Although one can establish a target and stop loss before returning to a full-time job, this approach is not viable in the long term. On rare occasions, a stock may reach the stop loss before reaching the target.


Despite having many advantages and disadvantages to intraday trading in India, newbies should proceed carefully and cautiously. Knowing the level of risk tolerance, conducting the necessary research, and having the necessary discipline to see trading plans through are essential for becoming a successful trader. To avoid market dangers when exploring intraday trading, start with a minimal trade volume. Traders should also ensure that their technical analysis and fundamentals are solid so they can make informed buy and sell decisions.

Trader’s trading adventures will go more smoothly if they 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 realise the genuine benefits of intraday trading thanks to Share India’s user-friendly interface.

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