Benefits of Intraday Trading
1. Zero Overnight Risk: Intraday trading has no overnight risk because investors don’t have to hold the securities in their demat account. One of the primary benefits of intraday trading is that buyers do not have to depend on a few shares to multiply over time because every day brings a fresh possibility.
2. Understanding Market Intention: Another undeniable benefit is that intraday investors are the first ones to learn about any changes in feeling or approach in the market. Day traders are often the first to feel the effects of any situation, whether social or economic. If you can identify the warning signals of these circumstances quickly, you can take proper risk management actions.
3. Earning Potential on a Consistent Basis: The massive profits are the sole reason for intraday trading’s gradual increase in reputation, there is no disputing that it is risky. You can make good money if your plan is sound and you follow strict discipline guidelines.
4. Steady Income Source: If you can apply the correct intraday tactics and commit them continuously, you should have no issue converting this into a steady source of revenue. Some traders have built a living solely from intraday trading. You must conduct comprehensive research, put in a lot of effort, and determine the most suitable window for intraday trading in addition to the appropriate tactics.