As investing outside of Fixed Deposits and savings accounts is getting more popular these days, the new generation investors are always looking to learn more about how they can grow their wealth. In the world of stocks and trading, more and more retail investors are jumping into the game. Day trading has become a go-to choice, for those seeking quick gains with their investments.

To make some quick bucks from day trading it’s important to garner enough knowledge about the stock market. There is much confusion for new investors entering the stock market.

In the Indian stock market, investors who opt for delivery-based trading are not permitted to buy and sell stocks on the same day. Delivery-based trading involves purchasing stocks with the intention of holding them for a more extended period, typically beyond a single trading day.

In this type of trading, investors become company shareholders and are entitled to benefits such as dividends and voting rights. To sell stocks purchased through delivery-based trading, investors must hold them for at least one trading day, as stocks are only credited to demat accounts according to the settlement cycle mandated by the stock exchanges and the Securities Exchange Board of India (SEBI).

On the other hand Intraday trading, also known as day trading, refers to the practice of buying and selling stocks within the same trading day. Intraday trading can also be done for other financial instruments that are traded on stock exchanges. Unlike traditional investing, where investors hold stocks for a more extended period, intraday traders aim to capitalise on short-term price movements. Intraday trading is done purely to make profits. This strategy involves closely monitoring market trends, technical analysis, and making quick trading decisions to take advantage of price differentials.

In the Indian stock market, intraday trading has gained significant popularity, attracting a large number of traders seeking to generate profits in a short span. The introduction of online trading platforms and brokers like 5 Paisa has made intraday trading more accessible to individual investors, making day trading more popular in the past few years. These platforms offer competitive brokerage rates, advanced trading tools, and real-time market data, empowering traders to make informed decisions and execute trades swiftly.

One key advantage of intraday trading is the potential for quick profits. Traders can take advantage of both upward and downward price movements, leveraging volatility in the market. By capitalising on short-term price fluctuations, intraday traders aim to book profits and exit their positions before the end of the trading day. This approach allows them to mitigate overnight risks and benefit from intra-day market dynamics.

However, it is crucial to note that intraday trading is not without risks. The fast-paced nature of this trading style requires traders to possess a deep understanding of market dynamics, technical analysis, and risk management strategies. Additionally, intraday traders must be prepared to handle rapid price movements and volatility, which can result in both profits and losses within a short span. Adequate research, disciplined trading strategies, and risk management techniques are essential to navigate the challenges associated with intraday trading successfully.

In India, 5 Paisa is a renowned discount broker that offers a range of investing and trading services, including intraday trading facilities. 5 Paisa provides a user-friendly online trading platform, competitive brokerage rates, and advanced trading tools to assist traders in their intraday trading endeavors. Traders can access real-time market data, perform technical analysis, and execute trades swiftly through the 5 Paisa platform, empowering them to make informed decisions and optimise their intraday trading strategies.