Traders are always worried about generating returns from the market. Any new person in this sector is in dilemma to invest in intraday or positional sales and which one is highly profitable for them. Also, which is less risky and require limited amount. So, it is very important to know the differences and advantages of different time frames you are using. It helps to took the decision of strategy which is perfect for you. And, prepared you to face the unfortunate outcomes like loss or lesser profit.
A trader can choose three ways to put the money in the share market. The classification is based on the time period of holding the particular stock and closing the purchase. Here the term closing used for the process of complete sell of the purchased stocks. The three types are – Intraday, BTST or STBT and Positional. To understand them in detailed form, a specific explanation is given below.
Intraday – It is the short term trading, closed in a single session of the business. In this kind, one have to do the buying and selling in the same day. No stock is going to hold for another day. It completes from minutes to hours depending on the buyers choice. But square of at the closing-time of the session, and there is no stock in the next trading day. It is the done on the daily charts and the updates from it. Many traders opt for it for safe and regular profit making investment.
BTST or STBT – In this kind, trader can close the stock in the next working day. One can opt for Sell Today Buy Tomorrow or Buy Today Sell Tomorrow even if not having any stock in the account. This means one can sell those stocks which is not in the account and buy on the next day. This way no delivery occur only the profit may be transferred to the account. It is done on the basis of daily charts and deliver handsome income to the owner. Many people from small investors to the huge ventures include in this type of strategy.
Positional – This type of trade exists for long time from days to months, months to years. There is no bound to square of the stocks. Those people who stay for long term in the market choose this type. Profit is sure in this strategy but one have to wait for some time to get fabulous returns. It is done on the basis of track-sheets and past performances.
Thus, trading styles are many but the scope of profit differs and its the trader choice that which one is the best suitable for him.