InvestorQ : What are some of the key advantages of intraday trading?
diksha shah made post

What are some of the key advantages of intraday trading?

Anu Biswas answered.
3 years ago
Never enter an intraday position without a stop loss and a profit target. Both these must be set in the trading terminal in advance. Intraday trading gives an opportunity to short sell the stock and cover it back when the price falls. It allows you to play the market both ways.
When you are selling short intraday, remember to close the position before the close of trading. If you have a sold as stock and you cannot give delivery, then the shares will go to auction and you will have to bear the loss, which can be as high as 20%.
Most brokers have in-built position termination facility in their trading engines and these position closures are triggered automatically around 15 minutes before the close of trading.
Remember, intraday trading can multiply profits but it can also multiply losses. Like any leveraged product, intraday trading plays both ways. Hence as a trader, you need to be extremely careful while trading intraday.