Intraday trading- Its advantages or disadvantages:-

Dear traders,

We are thrilled to do intraday trading because of its sheer adrenaline rush it brings into the table. But is it worth doing? Does it really help to make money in a consistent basis? Let’s discuss it.

Margin requirement:-

Every other broker was trying to entice the traders by giving as much as 30X margin. As a result newbies got excited to take a dive in the market. Now as per the SEBI new margin rule, intraday traders won’t get any benefit as brokers will not be able to provide any extra margin. Therefore, intraday trading will see its steadfast declination in coming days.

Operators’ action:-

Retail traders are always fond of intraday trading. Operators are well known of this fact. Thereby they keep the trap ready for the retailers. They can see the SL placed by the major retail traders due to their deep pocket and data wise & technical advantages. They use their deep pocket to let the retailers’ SL hit. As trading is a zero sum game, the lost money of the majority will be gained by the few operators. That’s how intraday trading is able to blow the capital of most retail traders within a few expiries.

Psychological barrier:-

Most of the time it happens that you exit the trade intraday due to margin issue and next day it hits target. It also happens that you don’t wait for the market to square off, you exit it before that with the fear that it would bring more loss. As soon as you exit, it moves in your coveted direction and you feel crap. That’s how psychological barriers play such a pivotal role in intraday trading.

That’s why we believe that if you want to get consistent with your profit and get away from the trap se by the operators, then you might reconsider your thought as far as intrday trading is concerned.

Best regards,

StockTradinfF&OTeam