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Requirement Needed To Do Stock Cash Trading or Intraday Trading Safely

Posted On : Feb-04-2012 | seen (1266) times | Article Word Count : 609 |

This article is about basic requirement needed to do intraday trading safely. Gather adequate information on market drift and other latest trends to know where the market is going. Those who hurry into the stock market without knowing the basics will surely find themselves at cross roads at some point of time.
Stock Cash Day trading-Buying and selling of shares on daily basis is called day trading this is also called as Intraday trading. Whatever you buy today you have to sell it today or whatever you sell today you have to buy it today and very importantly during stock market hours that is 9.15 am to 3.30 pm (Indian time).One of the advantage of Stock Cash Day Trading is Margin trading in that you get margin on your balance amount means you get more exposer (amount) on your available balance amount to do day trading this concept is called margin trading. Margin trading is only possible in day trading and not in delivery trading. How much extra amount (margin) you are going to get that totally depends on your broker, or your online system brokers. Some broker provides 3, 4, 5, and 6 times extra margin. If you do margin then you have to square off your open trades on the same day (means if you bought shares then you have to sell and if you sold shares then you have to buy) before market time (that is 3:30 PM) finishes .
Second important advantage is that you have to pay is less brokerage (commissions) on stock cash day trading (Intraday) as compared to delivery trading. This brokerage again depends from broker to broker and last, in day trading you can sell and then buy this is called short sell which you can’t do in delivery trading. You can sell stock shares when prices are falling and then buy when price falls further. Points to remember for day trading: Following are very important points to be always remember by day traders. Entry & exit points, stop loss limits, profit targets, your desired risk/reward profile, amount of capital to be committed to trades, how long you need to hold the share if incase it is against your favor.
Some Disadvantage of stock cash Day Trading are like as you are gained to get more extra amount to trade (that is margin trading) and get more extra profit it is also equally true that you are also taking more risk of loss and another one, At any cost you have to square off the open transaction before 3:30 PM (especially if you are doing margin trading) at that time the price may not be in your favor.
A successful day trader or stock cash trading requires couple requirements like PC with internet - If you need to do it yourself then you need to have a PC or else you can do it in internet café also. A PC with good internet connection speed. The internet connection should not be slow or should not face any other problem especially in stock Day Trading and second one is Online Account (Demat Account) - You need to open online share trading account with any of the available banks or online brokers.
Points to remember while opening online account and Make multiple enquiries and try get low brokerage trading and demat account. Also discuss about the margin they provide for day trading stock cash tips. Discuss about fund transfer. The fund transfer should be reliable and easy. Fund transfer from your bank account to account and vice versa. Very important is about service they provide, the research calls, intraday or daily stock cash tips. Also enquire about their services charges and any other hidden charges if any. And also see how reliable and easy is to contact them in case if any emergency. Emergency closing or squaring off trades in case of any technical or other problems.

Article Source : http://www.articleseen.com/Article_Requirement Needed To Do Stock Cash Trading or Intraday Trading Safely _143833.aspx

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Yoshita Mishra
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Keywords : Stock Cash Tips, Nifty future Tips, Commodity Tips, Option Tips,

Category : Finance : Investing

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