Quadruple your money with this rule: Rule of 144

Intraday Trading

Investing

Short-term: A day trader has a short-term view, lasting no longer than a single session

Long-term: An investor typically has a longer-term view stretching several months or years.

Buy and sell: A day trader does not take delivery of the shares- all his shares are squared off before the market closes.

Buy and hold: An investor takes delivery of his shares and sells them at the appropriate time, as per is requirement.

Selling short: A day trader can go short; sell shares he does not own.

Going long: Investors typically don’t short the market. They are in it for the long haul.

Quick takes: A day trader looks to take advantage of small price movements.

No short-cuts: An investor seek shares that will have large upside price movements over time.

Volatility: A day trader seeks to benefit from short-term volatility.

Stability: An investor is not influenced by sudden price swings.

Technical: A day trader mostly uses technical analysis.

Fundamental: An investor relies on fundamental analysis.

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.