Intraday trading and delivery trading which one is the best lot of newcomers confuse in these two, both are different types of trades both are good and both are bad. What is intraday trading, a question arises in mind generally if we buy a stock today and sell it today itself called intraday trading. On the other hand, we buy a stock today and sell it other day called delivery trading.
The view of trading varies from person to person it’s a personal opinion. Anyone wants to earn a lot of money prefer Intraday trading and long term investor prefers delivery trading.
In most of the cases or we would say 99% of people lose money in intraday day trading only 1% of people make a profit out of it. It needs an excellent skill set for intraday trading, needs a lot of mastery to become successful in it. People talk about intraday trading tips but to become successful need a lot of practice and persistence.
People in long term make money. In 99% of cases always make a profit if our horizon is a long term one year to 5 or 10 years we make a profit in some cases we get our target in just a few months. It needs a great skill set just a general understanding of the stock market can make you profitable.
Intraday trading strategies also can make you profitable if you know how to manage your risk, and how to control your emotions, a lot of factors involved in it like international news, market situations, not easy to time the market for a normal person.
How to do intraday trading is a learnable skill we can’t deny it, you can learn it from a coach or with self-learning, but a coach can save your time and money, self-study takes time and money to get profitable.
Which one we should select Intraday Trading or Delivery Trading
Everybody wants to multiply and save money future. If you have guts and skill set you can do intraday trading, and if you don’t know much and lack proper skill set then you should go with delivery trading it’s easy you need little understanding of the share market. Just by good companies at a good price and hold, you will get excellent profit. And the best part is we can start delivery trading with a small amount consistently.
Then a question arises what we need to start trading or to buy stocks. To participate in both the terms We need a Demat account, there are multiple companies online trading account with great benefits.
Why Intraday is so Popular
Companies enticing people to involved in intraday trading by giving attractive offers, means you need just a small amount of money to buy and sell stocks if you are good at intraday you can become a millionaire or billionaire in a short span of time.
What is Short Selling
Bse and Nse offer you the option in intraday, they have opened the door of short selling for people who do intraday trading, in this term, if you feel the price of a particular stock going to fall you can do short selling without having a physical stock.
And the second reason why people involved in day trading if it is risky because of low brokerage compare to delivery trading the intraday trading fee or charges is very less and the probability of high returns.
You end up losing money in intraday trading if you can’t track minute to minute it is high risk involved in it. And it is hard to know where to go the market because of the short time frame. On the other side, you have time till your rate comes.
Dividend and Benefit
In the intraday trading, you will not get any dividend or benefit declared by the company from time to time,
Intraday trading you have a high risk on the other hand in delivery trading you have very low risk because of a long time duration.
Where you pay very low brokerage charges in intraday, in delivery you pay high brokerage charges and delivery charges, that could be a setback for the small investor if your volume is a little higher than there is no issue.
In intraday trading, you can avail the benefit of leverage offers by a different discount broker but in delivery trading, you have your own capital to buy and sell the stocks this is the drawback in delivery trading.
Some time your capital stuck in a particular stock because of stock fluctuation, the time period could be longer than your expectations.
in delivery trading, you get all the benefit and dividend that is given by a particular stock. You get not only dividend but also bonuses, share split benefit that is missing in the intraday trading. When your capital accumulated and become bigger, then your dividend income surpasses your monthly income.
Due to the low risk, your capital is safe, and your capital becomes bigger and bigger with time. You don,t need to keep an eye every day on market fluctuations.
In delivery trading no you get a lot of benefits still you have some drawbacks that you should aware of before investing in delivery. In delivery, you pay high brokerage charges for delivery based trading. Sometimes you have to wait for an uncertain time limit because your capital stuck there, no movement in the stock.
Which one is Best Intraday trading or Delivery Trading
Both the term are different things this is their personal call, both have their own benefit and drawback, for intraday trading, if a person wants to earn a lot of money in a short span of time then he should go with intraday trading, but it requires mastery on a lot of technique and keep an eye on minute to minute movement of the market to make it profitable that is not possible for people who involved full time in their business or job.
If you have patience and lack of time and expertise then you should go with delivery trading, if your time horizon is longer your capital multiply, there is little risk if with some research invest in good stock, and you get good returns. All the big investors prefer delivery trading because they have made a big profit and become wealthy.