How Intraday Traders Make Money from Market Fluctuations
Intraday trading, also known as day trading, refers to buying and selling financial instruments within the same trading day. This strategy aims to capitalize on market fluctuations during that period. Understanding the dynamic world of intraday trading requires grasping a fundamental concept: market volatility. This is where traders find opportunities to make profits. Intraday Meaning and Strategy The primary objective of intraday trading is to leverage small price movements in liquid stocks or indices to realize profits. Intraday traders close all positions before the market closes for the day, avoiding overnight risk. They rely on technical analysis tools, charts, and software applications to make informed decisions. Popular strategies include scalping, momentum trading, and arbitrage. Price Movements and Profit Calculation Let's assume a trader buys 100 shares of a trending stock at INR 500 each, forecasting the price to rise during the day. By identifying a rising pattern, the...