Even if you do not want to wait long for the returns by investing your money, you still have the option of earning. Capital market also gives you the option to invest for one day. This is intraday trading, in which it is allowed to buy and sell shares on the same day. Here shares are bought, but its purpose is not to invest but to earn profits from the increase in it in a day. However, it is not necessary that you should benefit from it. But if the stock is properly selected, then the chances of profit increase.
How to choose the right stock
- Only trade in liquid stocks, you can choose 2 or 3 such stocks.
- Stay away from volatile stocks
- Shop in stocks with good correlation
- Before choosing the stock, see the trend of the market, do not go against the trend of the market.
- After research, invest in the shares you are Confident about
- Before buying shares, decide in which price to buy and how much is its goal. Do make a stop loss.
- Make a profit booking as soon as the goal is met.
How much money is needed
You can invest any amount in a stock during intraday. The rule in the stock market is that on the day the stock is bought, you do not have to pay full money on that day. Under the rule, the full payment has to be made after 2 trading days of the day on which the share is purchased. Even then, you have to invest 30 percent of the share price in the beginning.
How do you get the benefit
Take this example from 31 July 2019 i.e. on Wednesday, trading on the stock market. Wednesday proved to be a better day for those who invested in IndusInd Bank shares. After adding positive sentiment on Wednesday, the company’s stock has risen by 5 percent.
IndusInd Bank’s stock closed at Rs 1336.90 on Tuesday. On Wednesday, it opened at the price of 1324 and reached the price of Rs 1398.95 in a short time. That is, there was a gain of Rs 62 per share.
Intraday Trade Method
If you want to do intraday trading in the stock market, then for this you have to open a demat account and a trading account first. In this account, you can either trade shares by ordering a broker over the phone or you can also trade online yourself.
Opinion of experts
According to experts, although most of the trading of the stock market is done by day trading, but one should still trade with caution. The market trend must be seen before choosing a stock. Do not go against the trends of the market. Before buying shares, decide in which price to buy and how much is its goal. Do make a stop loss.
(Disclaimer: We are giving information about intraday trading here, not investment advice. Stock market has its own risks, so be sure to consult experts before investing.)
