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As the name suggests, intraday trading refers to entering and exiting positions on the same day. It is aimed at capturing very small moves, typically 1 percent or less. On the other hand, positional trading involves entering a position on one day and exiting it a few days or weeks later. Sometimes, a positional trader could also exit his or his position after a few months.
Intraday Trading: Day trading involves closing the position on the same day and not carrying forward the position overnight. Therefore, day trades can last for minutes, hours, or even an entire trading session. The position will be squared off on the same day, regardless of profit or loss. Hence it is mandatory to close the intraday position on the same day, otherwise will be charged for a penalty.
The hours of 9:30 a.m. to 10:30 a.m. and 1.30 pm to 3.00 pm are perfect for making trades in Indian market for intraday.
As we all know Indian stock market is strongly influenced by the global market. After globalization, the Indian stock market is integrated into the global market and its effects are visible. There are several factors that affect the Indian stock market namely interest rate, supply, and demand, inflation and effect of the international market. Out of these effects of international market plays a very important role in regulating Indian stock market. When there is a global recession these Indian companies cannot sell their products in the international market. This affects the revenue portfolio of the company. This changes the values of shares of the company in the Indian market. People stop investing in such companies and eventually the share price falls. The share price movements of these companies are more likely to be affected by the development of the world economy. This will result in a decline in the country’s stock exchange.
Intraday- As suggested by the name itself, intraday trading involves taking new positions after the opening of the market while also closing those positions on the same day prior to the market closing.
Positional trading- Trading positionally allows one to hold their positions as per one’s needs, for one or more days, weeks or months.
So if we have low capital affordability, going with intraday trading is a smarter move as positional trading requires a higher capital. Another factor to consider is how much risk we can bear. Intraday is a high-risk trade. If we can accept a high amount of risk, intraday trading may be more suited than positional trading, the latter of which involves moderate to high risks. A final parameter is the time frame. A full-time trader who wishes to remain glued to their screen should consider going for intraday trading, whereas someone who wishes to trade on the side or cannot dedicate their entire day to it, can opt for positional trading.
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