Intraday Trading, also known as Day Trading, is the system where you take a position on a stock and release that position before the end of that day's trading session. Thereby making a profit for yourself in that buy-sell or sell-buy exercise. All in one day.
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You are not concerned about whether the market is going down or up. You are not concerned with market sentiments. You are not concerned with the fundamental strengths (or the lack of it) of any company. All you need to predict is that the stock price will either rise or fall very sharply in the course of the day.
When you take up day trading, the rules that may have helped you pick good stocks or find great money makers over the years, trading 'normally', will no longer apply. This is a different game with different rules.
All of the methods that are used to identify stocks that are appropriate for normal delivery-based trading are dependent on either technical analysis, fundamentals or insider information. Technical analysis with charts is a way of using historical price/volume patterns to predict future behavior. Fundamentals deal with the market strength of a company, involving detailed study of balance sheets, branding, positioning, etc.
None of these, on its own, hold good for day trading. The day trader's choice of scrips and positions has to work out in a day. There's no waiting until tomorrow to see how the charts play out before committing capital. If the day trader sees an opportunity, he has to go for it. NOW. Or it's gone. Things can change drastically in minutes. When it's time to buy or sell, it's time to buy or sell, and that's all there is to it.
Day trading can be a great way to make money all on your own. It's also a great way to lose a ton of money, all on your own.
Not everyone can be a day trader, nor should everyone try it. If the idea of being in charge of your own business and your own trading account is exciting, then day trading might be a good career option for you.
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