Intraday Trading-Way to Earn Daily Profits

Intraday trading refers to a position that is opened and closed within the same day.It refers to the practice

of buying and selling financial instruments within the same trading day such that all positions will usually

but not always be closed before the market close of the trading day.Some of the more commonly- day traded

financial instruments are stocks, stock options, currencies and future contracts such as equity index futures,

interest rate futures, and commodity futures.Intraday Trading also known as Day Trading, is the process where

you take a position on a underlying asset and release the position before the end of that day's trading

session.And hence making profit in this buy-sell exercise in one single day.

Intraday trading is tightly regulated practice in the stock market thus Financial Industry Regulatory Authority

(FINRA), defines intraday trading as the buying and selling of security on the same day.The buying and selling

may occur in either order i.e. If you "short" stock, which means you sell stock that you do not yet own, and

then buy it back later in the same day, this is also a day trade.The Day traders in this way can book profit

from intraday declines in any stock.Intraday trading comes with a great risk,it is normal for a trader to lose

money in every 5-7 transaction which he had but there is also a chance of making money in the 8th

transaction.

Intraday trading is very well paid opportunity that exists in the stock markets that allows anyone to buy and

sell securities in a single day resulting in substantial gains or losses for its owners.The Intraday trading

industry serves two major purposes-it keep markets running efficiently and provide liquidity at the same

time.Intraday trading is no magical carpet rise that will take you places where you wish to be.It takes hard

efforts and skills to be successful.To gain in intraday trading there has to be a trading plan and day traders

must stick to their plans to make money in intraday trading.Intraday traders have to take decisions quickly and

at the same time they have to think patiently, it is possible that sometimes nothing is looking profitable but

within the fractions of time everything is looking profitable.

In intraday trading, a trader is not concerned with the sentiments that are running in the market, he is not

concerned with the fundamentals or technical's of any stock or company, all that he is concerned of is which

stock is moving upwards and which one is going down at a faster rate.Intraday trading is completely different

ball game; there is no golden rule to follow in intraday trading.The methods that are used for identifying

stocks are either technical analysis or fundamental analysis.Technical analysis is done by reading charts

(candle sticks or bar), where as fundamental analysis is based on market strength of the company, it includes

all the detailed study and analysis of the company's balance sheet and ratios.