Most of the stock traders in the world prefer to go for long term for more safety in the market. Few beginners trade intraday and lost money without having proper knowledge over the market. Is Long-term trading better than intraday trading?
What is intraday trading
When a stock in the market is bought and sold on the same day then it is called intraday trading.
What is Long term trading or CNC
When a stock is bought for a longer period or more than one day then it is called long-term trading or cash and carry.
Is Long-term trading better than intraday trading
A marketer can trade both long-term and intraday if he had proper knowledge over the market. You can read one of my article which provides you knowledge over intraday trading 7 Golden Rules For Intraday Option Traders For Making Guaranteed Income. This is the article written on personal experience.
One should the movement of the market to invest in longterm or intraday. A trader needs to analysis where the market is moving towards. What is going to affect the market movement? Intraday trading is profitable when the fluctuation of the market is more.
Example: On November 8th, 2016, Nifty started with -500 points. In such situations, the movement of the market will be high when the RSI is completely low. It will be profitable if the options were bought at the correct time.
Let’s consider intraday in other situation. When the market moment is pleasant and moving at the equal price without fluctuation then intraday might not work. If the profit booking is very less then the profit will be lost in the form of brokerage, taxes and other charges. We can choose intraday trading when there are higher profits after including the additional charges. Intraday might not work every day unless you have higher knowledge over the market.
Longterm is a safety game. If you prefer to choose the right stock with proper analysis then the profit range will be higher. Choosing a wrong stock might get you into risk even in long term. Simple strategies like Renko charts will work for calculating longterm trading. A companies stock growth can be calculated with the popularity of the product, debts, its previous value, market cap etc. Calculating the long-term stock will be quite easier than the intraday trading.
Longterm vs Intraday trading | Pros and Cons
- Improves calculation.
- Weekend jackpots.
- News helps in easier calculation of Intraday trading.
- Intraday charts will be much helpful to trade.
- RSI works in Intraday.
- Candle charts work in intraday.
- Minute calculation charts work in intraday trading.
- Higher risk.
- Need much calculation.
- Experts suggestion is required.
- Brokerage and Taxes.
- Low Risk.
- Renko charts calculation will be useful.
- Experts suggestion might not be required for a lower term period.
- Profit percentage will be high over time than brokerage and taxes.
- For a longer period than 1 year, experts suggestion is required.
- Deep calculation over debts and companies standard.
- Choosing a wrong stock will lead to a higher risk.
These are our calculations over the market. Please suggest us if we missed any of the points. We will be happy to hear the words from you in the comment section.
Note: These are the personal views about the market written intraday and longterm traders. Each person may have their own way of calculations and trading.