Intraday Trading: A Strategy to make Money with both Bull and Bear
When it's come to strategy every investors have their own to make money. But most of them will suggest to go for long term as that'll minimise the risk and if company does well over the years the reward will be beyond count. But due to time management between work and daily life, also sudden emergency situations make it difficult to have patience for that long time. As result, investors sometimes rush their decision which cause them loss in market and demotivated to invest further.
Bear Market is where most people lose themselves. Market going Red and getting Down every moment makes investors nervous and while paniced, they choose to withdraw the amount which is left there despite the loss.
So, question like this commonly occurs Is there no way to get profit from Bear Market? Ans is Intraday Trading. Bulls are welcomed by all, even novice know when to Buy and Sell in Bull's field. But Bears are feared by most, one primary reason is many investors think Bear Market doesn't give profit. Which is true until you'll use this trading strategy.
WHAT IS INTRADAY TRADING?
Intraday means within a Day. Every Stock Exchange Market of different countries has their own Market Opening and Closing Time. In Intraday, investors have to get their profit within that period.
BENEFITS OF INTRADAY TRADING:
We all know more or less about Holding or Delivery Trading strategy. Although this method is used by all and from a long period this gives investor profit, still it has few gaps that can be minimized by Intraday.
1. Profit in Bear Market - In Delivery trading best thing an investor can do is buy Dips, but that'll not give you the profit you want, specially in short timespan. There comes Intraday method which make investors engaged in market and booked them profit. In term of Share Market, an Investor can go Short first, then go Long in Bear's area. In simple meaning, the investor can sell share or stock of any company when price is high, later buy them when price hits bottom, known as Short Selling.
Investors like these often referred as Traders as they don't invest any amount, simply trade stocks within very short amount of time.
2. Market Movement Do not affect Intraday Traders - Depending on their stand an investor can be both Bull or Bear in Market. If Bull's are in charge, then investor will go with Buy first, Sell later strategy in hope of a rising market. But if Bear manage to get into the field, therefore following method will be limited as market will slope down ignoring all Resistance and Support lines. Not if you used Sell first, Buy later strategy which is only available in Intraday trading. So, either market moved up or down any investor who knows this method will always fill his pocket.
3. Intraday Trading can give more Profit than Delivery Trading - As you know, Why investing in Share Market is more Beneficial than store Money in Bank, so according to analysis if we spent 1000 USD for 1 year and do nothing, that particular stock can give you more than 30% return in a year nearly 1300 USD or more. But an Intraday Trader can easily squre off that amount in a month or less depending on market. Sounds unreal, right? But it's not.
Here is an example of how whole thing works, 1% of 1000 USD is 10 USD, depending on market status and country's economy that percentage can be more or less. But normally any Volume Stock can hit 1 to 2% on a good trading day. As intraday doesn't concern with up or down movement of the market, stocks hitting highs or lows is not main focus to them. That makes 10 USD per day profit to a trader either with Bull or Bear. After a month (30×10 USD) = 300 USD and after a year ( 300 USD× 12)= 3600 USD, in total 4600 USD in a year just starting with 1000 USD. Which is more than triple of primary invest money. And as a extra benefit you don't need to hold your money anywhere.
Few Questiones such as Which is Better Delivery or Intraday Trading ? can varied from person to person and their decision.
If you want to be a good Intraday Trader few things you have to be good in are Time Managment, Risk Management, Discipline while Trading, Analysis of Line Graph and Candle Stick Pattern etc or else it'll be consider as gambling or game of pure luck.
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