Advantages of Day Trading Over Positional Trading

Trading in share markets is the act of purchasing and selling stocks at the right time to make a profit. Trades can be made in many different segments. Trading is a choice that is personal to each person. This is the most profitable segment.

Day trading is not without risk, but there are some benefits to day trading over positional.

1. Day trading does not carry overnight risk

It has the advantage of not having to take any overnight risks. The traders close their positions the day before the market closes. Good or bad news does not affect profitability. Positional trading is a trade where the profit can be affected by bad news that happens overnight.

2. Day trading is a way to make a profit in any direction

Day traders can take advantage of the rising and falling markets. The bullish trend is not for positional traders and long-term traders. They cannot keep their stocks for long periods of time to profit from it. A day trader can make a profit by selling short in falling stocks. In a positional case, however, the trader cannot short sell in futures that require high margin.

3. Day Trading requires greater leverage

This broker requires low margins and provides more leverage on your trading capital. Many brokers offer 100 percent leverage, which means you can trade with more money than what you have in your account. Imagine that you have Rs 1 lakh in your account. However, with the highest leverage you can trade with Rs 2 lakh Rs per day. This can help you increase your profits by many folds.

4. Day trading allows you to make high returns

You will get great returns if you trade using accurate intraday tips. All you have to do to day trade is to understand how to deal with intraday market fluctuations. Money Classic Research offers free intraday tips.

5. Day trading has a low brokerage commission

It has a brokerage commission that is one-tenth of the amount for positional trading. It requires a lower commission. Day trading allows you to trade with more money by paying a lower commission.

You must use several strategies and technical indicators to generate accurate tips for the share market.