Why do people prefer intraday trading instead of holding it for a week or two and sell it?


Why do people prefer intraday trading instead of holding it for a week or two and sell it?

Intraday trading always looks attractive to newcomers or to those who have less capital. Intraday trading is like T20 Cricket, which is still favorite amongst traders. As we like T20 most and Test cricket least because of timing, the same thing applies in the market as well.


There are a few common reasons behind that which I am mentioning here:
  • Intraday Margin: All brokers provide intraday exposures to clients for intraday, which is the most common reason for attraction. Suppose if you have 50,000 balance in your account, you will get ten times to 20 times the exposure for intraday, which looks lucrative to traders because they don't have to spend huge capital for a trade of 5 lac or 10 lac.
  • No Overnight Risk: This is another common reason because many traders think that I don't want to take an overnight risk. I don't know what will happen tomorrow, so whether profit or loss, I will clear my position today, and I will do fresh trading tomorrow.
  • Instant results: Intraday trading is instant trading, which gives results in a short time only. You don't have to wait for days or months, which attracts everyone like T20 Cricket.
  • Lucrative profit without investment: Your money is free while you are trading in intraday so you can withdraw it anytime. You don't have to block your investment, and you are getting 5000 to 10000 profit in the investment of 50,000, which seems to be lucrative for traders, so they always prefer intraday.
  • MIS, Cover order, and Bracket order facility: Brokers like Zerodha and others are giving facility to take trades with calculative, which has high values, but you can trade with small capital.
  • Intraday movement and volatility: Intraday traders get good volatility in stocks to play in low investment, so it gives them greed and attraction to do more trading for intraday.
  • Lower brokerage: Traditional brokers charge delivery brokerage up to 50 paise, while they charge only two paise to 5 paise for intraday. This is also another reason for intraday trading because you don't have to pay high brokerages.

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