What are the disadvantages of intraday trading?

In Intraday trading you take a trade and square it off before the share market closing time. In intraday trade, you can sell first and buy later or buy first and sell later but your position must be closed on the same day. The purpose behind intraday trading is to take the advantage of volatility in the stock market.

Profits in Intraday trading are generated by either buying at lower and selling at a high price or you can first sell them at a higher price and then buy the same instrument at a lower price and the difference will be your profit. Technical Advancement has made intraday trading easy and fast.

There are various disadvantages associated with intraday trading.

• The amount required for intraday trading is less as compared to delivery which leads to over-exposure of risk by investors and thus any wrong decision can wipe the entire capital.
• Losing in intraday trades leads to psychological effects on the trader’s health.
• Most traders lose money because they tend to trade because of the free intraday trading tips received from various telegram and WhatsApp groups.
• You can lose your entire capital in a single day if the market moves against your trading position.
• In Intraday trading, not all days are profitable.
• The stress level is extremely high in intraday trading.
• Constant attention is required in intraday trading.
• There are no dividends and bonus benefits available in intraday trading.
• Day trading can be boring as all the time you have to sit in front of the screen and keep an eye on the market.