What is the Difference Between Intraday and Positional Trading?
What is the Difference Between Intraday and Positional Trading?
In the stock market, it’s always hard for an investor to choose the best trading strategy. When you begin to trade in the share market, you can explore a wide range of trading services. In the list of trading services offered by the share market, you could come across two popular names namely Intraday and Positional Trading.
As an investor, you would be familiar with the operations and functions of these two strategies but would you like to learn the differences between these two strategies. Then, go through this blog further, as it will help you to know what is positional and intraday trading and what are their differences.
However, as an investor in the stock market, you would always require an expert guidance to choose the best stocks in the market, if you’re not backed by an expert seek the guidance of a trusted brokerage firm like Goodwill. Goodwill has a decade of experience and offers wise strategies to its valuable investors to choose the best stocks. To know more about Goodwill, click here!
What is Intraday Trading?
Intraday trading or day trading is a form of trading where an investor would or sells the financial instruments on the same day before the market closes. Day trading is a short-term investment with minimal returns as the stock is depended on the performance that happens in a day.
Traders who prefer less returns in the day with short-term investment would choose day trading. The day traders might face losses in the investment as it’s accompanied by risk factors but these risks can be overcome by seeking the help of an expert. Intraday trading is highly volatile and requires quick decision-making skills in choosing stocks.
What is Positional Trading?
Positional trading is a trading strategy that allows the investor to hold the assets for a longer duration when compared to intraday trading. In positional trading, an investor can hold the stocks for a few months to years. Since the investments are long-term the volatility of the stocks is less.
Positional traders expect to gain more profits from their investment over a long period. In Positional trading, an investor would make trading decision based on the technical and fundamental analysis of the stock as they are investing for a long-term period.
Difference between Intraday Trading & Positional Trading
| INTRADAY TRADING | POSITIONAL TRADING |
| Traders aim for a less return within a short period. | Traders aim for a high return with a long time duration. |
| The volume of traders is high as traders can easily place a trade. | There is no issue with trader volume as traders can easily manage accounts. |
| Traders can choose for low investment options. | Traders can invest in positional stocks based on their capacity of investment. |
| Trading is performed faster as it’s done in a day | Trading would require time as your investment is long-term |
| Need to worry about the trading position at the end of day, so it’s better to seek advice from experts | Conduct technical and fundamental analysis to determine the best performing stocks. |
| Requires experience if you’re not guided by any advisor. | Requires less experience if you know to examine a stock |
| Managing intraday trading is stressful if you have a job to do as you need to analyze its performance for a day | Managing positional stocks is not stressful as it’s a long-term investment but you should monitor their performance frequently. |
| Intraday trading is risky as it’s highly volatile | Positional trading posses less risks when compared to intraday trading. |
Choose the Best Trading Option:
When you have decided to invest your valuable savings in the stock market, always ensure you invest the money based on your future requirements. This will help you get better returns within the targeted time. In the stock market, while choosing stocks always analyze and seek guidance from the experts as they know more than you do!
Choosing the best stocks in the market would require guidance and it can be achieved only with the help of an expert like Goodwill. Goodwill has been recognized as India’s best trading brokerage firm and offers expert strategies to its valuable investors with exceptional support.
For more info, visit the official website of Goodwill or make a call on +91 80122 78000 to trade your stocks smartly and efficiently. Stay connected with Goodwill’s Facebook Page and get instant live updates on your stocks.
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