What is Intraday Trading? Understanding Its Pros and Cons Intraday trading, also known as day trading, involves buying and selling financial instruments within the same trading day. This strategy capitalizes on small price movements, allowing traders to profit from the market's volatility. Unlike traditional investing, where positions are held for longer periods, intraday traders close all their positions before the market closes, avoiding overnight risks. The Mechanics of Intraday Trading Intraday trading primarily focuses on stocks, but it can also involve trading in forex, commodities, and other financial instruments. Traders use various strategies, such as scalping, momentum trading, and range trading, to make profits within a single trading session. Intraday trading strategies Key Aspects of Intraday Trading: Benefits of Intraday Trading Leverage: Intraday traders often use leverage to increase their potential returns. Leverage allows traders to control larger p...
Mutual funds are a popular investment choice for both novice and experienced investors. They offer a way to diversify your portfolio and potentially earn higher returns compared to traditional savings accounts. In this blog, we will explore how mutual funds work, their safety, and how much you should consider investing in them. Let's dive into the details and help you make informed investment decisions. How Do Mutual Funds Work? Mutual Funds Explained A mutual fund is a type of investment vehicle that pools money from multiple investors to purchase a diversified portfolio of stocks, bonds, or other securities. The fund is managed by professional portfolio managers who make investment decisions based on the fund's objectives. Types of Mutual Funds Equity Funds : Invest primarily in stocks. They are suitable for investors seeking long-term growth. Bond Funds : Invest in fixed-income securities like government and corporate bonds. They are ideal for conservative investors seekin...