Intraday Trading Vs Swing Trading Vs Long Term

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Market participants have different objectives and traders should first decide what kind of trader they want to be. Do you want to be Intraday Trader, Swing Trader or Long Term Investor?

Let us look at Pros and Cons:
Intraday
Pros:
- Leverage is High. Professional Traders can multiply their income in single day.
- Brokers encourage you for trading more and give you maximum limits
- Brokerage is less for covering positions in intraday
- When there is huge movement and you are right, profits can sour

Cons:
- If you are not disciplines, you will erode capital
- If losses are not booked immediately, losses multiply and magin will become short. Brokers will cover your position in loss
- Volatility is high and if you do not have patience, this is not for you
- Intraday trading is the beneficial only if you are a professional trader, else avoid trading in intraday

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Swing Trade
Pros:
- Can make good profits when you have entered at the right price points
- Delivery is allowed upto 3-4 days with extra limits from broker

Cons:
- Stop losses are on closing basis and there are times where you feel your decision is wrong and may cover your position and later the target may get achieved. Hence, patience again is a key
- When you are making loss, you should NEVER average the trade. If you argue with market and expect market to reward you, it won't. You will be PUNISHED badly. Hence, discipline is very much important
- Should have enough capital and should be ready to wait

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Long Term Investor
Pros:
- Can make enormous profit if the Stock Picking is right and entry levels are at good price points
- Stock splitting and Bonus can create fortune if you are with very good company
- If stock picking is right, you may become CROREPATI and retire with that money

Cons:
- Very long waiting period
- If the fundamentals of the company turns bad, and you are still holding, all your PROFITs may vanish overnight
- If you have entered the stock at High Price point and from there the correction starts, you may have to wait for years to get your actual cost of investment itself.

As i have listed out, each of these investment patterns have its own advantage and dis-advantage. You will have to get the right advice and take proper decision when you are trading or investing. To get the BEST portfolio advise, email me at nsebsestocktradingcalls@gmail.com


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