When the trader squares off his trade position on the same day or such a buying and selling of stocks on the same day it is called Intraday trading while normal trading holds stocks for more than a day. Here you can easily differentiate between intraday trading and regular trade.
This is the best practice that calls for a lot of liquidity in the Stock market.
The answer is intraday trading can help to reduce the losses and generate daily basis profits. The measurable part is generating small profits with multiple trades. We don't need to wait so long
to generate huge profits in just trade. You can easily make a plan for multiple trades and earn small profits daily.
This is the best way to trade with an intraday trade. In this, you can enter with low potential for loss while providing high potential for profit if the trade is going continues. It helps to stop-loss strategies.
If you are skilled enough in trading and you follow the strategies. It doesn’t mean you can do Intraday Trading. It is not necessary that all traders should be in profit if they do trade. In Intraday Trading, There are 90% of traders in the loss.
The nature of income depends upon the two types of trading.:-
1. Equity Intraday Trading - Speculative Income
2. F&O Intraday Trading - Non-Speculative Income
The income from the Equity Intraday Trading is considered as speculative as well as you would be trading without any intention of taking the delivery of the contract.
The income from trading F&O, Exchanges are considered as non-speculative business income as well as it has been defined by this way. It is also known as non-speculative are used for the hedging and also for taking/giving delivery of the underlying contracts. Income from short-term equity delivery-based trades are also best to be considered as non-speculative income if the frequency of the trades completed by you is higher or in other words if investing/ trading in the markets is your income source.
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