Bone Up: Beating The Bulls In A Day
Outlook Money|September 2019

Breaking down the concept of day trading for a better understanding.

Anagh Pal
Bone Up: Beating The Bulls In A Day

First things first – day trading is not the same as investing. As the name suggests, it basically means entering and exiting the trade on the same day, one or multiple times. It is a very risky game for newbies and requires a very well sought out strategy in order to make it work.

“Trading in stocks, commodities or currencies entails initiating a buy or sell position and closing that position by way of profit or loss over a period of specified time. However, in day trading, the trader initiates a long or short position and has to close the same within a short span of the trading day. He or she will be executing various positions during the course of the trading hours for that particular session with the key objective of closing all positions before the day or trading session ends,” pointed out Amar Singh, Head Advisory, Angel Broking.

Who is day trading meant for? To answer this question we must first understand what day trading requires. “Day Trading requires continuous monitoring of the movement of stocks and indices in the market. As and when profit is captured on the intra-day movement of stocks and indices, they need to close their position(s) of stocks and indices immediately,” said Pritesh Mehta, Senior Vice President, YES Securities.

Day trading is something which requires a lot of knowledge and practice. Mehta said that professional and certified traders with an understanding of stop loss, risk-reward ratio and other concepts tend to excel in day trading. “This activity requires dedication and focus from individuals; they also need to make decisions on their toes. Any individual with zero or little understanding of equity markets should refrain from day-trading. They should ideally invest in mutual funds through the SIP route,” he added.

This story is from the {{IssueName}} edition of {{MagazineName}}.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

This story is from the {{IssueName}} edition of {{MagazineName}}.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

MORE STORIES FROM OUTLOOK MONEYView all
Gold ETFs And FoFs
Outlook Money

Gold ETFs And FoFs

While Indians love to invest in physical gold, even mutual funds offer the option, but in paper format.

time-read
2 mins  |
November 2024
PLANNING TO BUY CHILD INSURANCE? THINK TWICE
Outlook Money

PLANNING TO BUY CHILD INSURANCE? THINK TWICE

Child insurance plans combine insurance and investment but often offer low returns due to high costs, making a combination of a term insurance cover and mutual fund a better option for securing your child’s higher education needs

time-read
7 mins  |
November 2024
How Do You Define Happiness?
Outlook Money

How Do You Define Happiness?

Money does buy happiness, but after a while, the appeal fades. We talk about our relationship with money, but, maybe, it’s time to revisit our relationship with happiness

time-read
5 mins  |
November 2024
Avoid Crypto As It Is Highly Volatile
Outlook Money

Avoid Crypto As It Is Highly Volatile

I am 22 years old and have recently started working. I want to invest a small portion of money in cryptocurrency. How should I go about it? Does it require a huge capital investment?

time-read
2 mins  |
November 2024
Invest Right, Don't Speculate
Outlook Money

Invest Right, Don't Speculate

The lure of high returns and quick gains from equity tips, cryptocurencies, and equity F&O can be enticing. But remember, return of capital is more important than return on capital

time-read
4 mins  |
November 2024
The Wedding & Budget: Is Minimalist Trend The Right Knot For You?
Outlook Money

The Wedding & Budget: Is Minimalist Trend The Right Knot For You?

Indian weddings are known for their pomp and grandeur, but minimalist weddings are also in vogue now. Dia Mirza was one such celebrity who went for a minimalist wedding. If you also want to keep things minimal on your big day, here’s how to do it

time-read
9 mins  |
November 2024
Here's How To Buy An ETF?
Outlook Money

Here's How To Buy An ETF?

Mutual funds are the preferred choice for retail investors. However, they come at a cost and fund management risk, apart from other risks. A smarter alternative is to invest through ETFs.

time-read
1 min  |
November 2024
How Passive Funds Help Diversify
Outlook Money

How Passive Funds Help Diversify

Passive funds provide a simple way to invest in broad markets as well as in specific themes and sectors, making them ideal for an investor's satellite portfolio

time-read
2 mins  |
November 2024
The Rise Of Passive Funds
Outlook Money

The Rise Of Passive Funds

The popularity of passive funds among retail investors has risen post Covid, and fund houses are out with many variations of ETFs and index funds. Does this category present a new opportunity for investors?

time-read
10 mins  |
November 2024
Tax Reforms: What's In Store?
Outlook Money

Tax Reforms: What's In Store?

The government is working on reforming the existing Income-tax Act, 1961. The impending reforms have raised many questions in the minds of taxpayers. Will the old regime and deductions be done away with? Will it really simplify your life? What's the need for these reforms? We try to answer these and other questions regarding tax reforms

time-read
10+ mins  |
October 2024