Intraday or day trading is when you buy and sell a stock on the same day. It's like taking a bet on where the share price is going in the next few hours, minutes or seconds. If a day trader thinks the price of a stock is going up he will buy it, hoping to sell it later for a profit. If he thinks the price is going down he will sell it, hoping to buy it back later at a lower price.
Because many brokers offer the option to trade on margin (using borrowed money) and charge much lower fees for day trades, day trading has become more and more popular in India, particularly among young retail investors. It is however a very high risk pursuit. The use of margin trading and the speed at which trades can be made means that for a day trader massive losses are a real possibility. The flip-side of this, that massive profits are also a possibility, is probably the why it is so popular.
Some day trading strategies focus on the very short-term; buying and selling a stock ...
