Difference between Intraday trading and Investing

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Ready to conquer intraday trading but don’t know where to start? Watch this video to learn about 5 powerful strategies that help traders make smarter decisions

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What's better than doubling or tripling your money, it's quadrupling it. The rule of 144 gives you an estimate of how long it will take for your money to grow by four times. The rule of 144 is similar to the rule of 72 and 114. Simply divide 144 by the assumed return rate to get an estimated number of years for your money to quadruple. So, if your investment account earns 11% assumed return rate it can take 13.09 years for your money to quadruple.

What is Intra-day trading?

Intraday trading, is the act of buying and selling the stocks within the same day. Traders buy and sell stocks during regular market hours and close their open positions before the market closes.

How to pick stocks for Intra-day trading? (5 Simple Strategies)

1. Trade in liquid stocks

   Liquid stocks are traded in large volumes and allow you to enter and exit positions as needed.

2. Pick stocks with medium volatility

   Pick stocks with a reasonable amount of movement within a day but use the stoploss feature to minimise potential losses.

3. Buy stocks that you understand

   Trade in stocks that you have followed, tracked and know about. Avoid trade in stocks that you have no knowledge of; or which are manipulated or move based on rumours.

4. Avoid penny stocks

   Avoid trading in stocks which are available at very low prices i.e. in single digit prices.

5. Make focused investment based on research

   Don’t trade in too many stocks. Do your research and focus only on a few stocks that you can track and review easily.

Pre-requisites for intra-day trading

Have a trading or demat account and a bank account.

Lumpsum Investment Systematic Investment Plan You invest a large sum in one go. You invest small amounts periodically, like every month. Ideal when prices are not volatile and are likely to steadily rise. Best in most conditions, but particularly when markets are volatile. You must time the market to get the best returns. You don’t need to time the market; just keep investing regularly. Good for seasoned investors, who have a higher risk appetite. Good for most investors, who prefer lower risk. Good for investments in liquid funds, which provide stable returns. Great for investments in equity mutual funds, where returns are volatile.