Intraday Vs Positional Trading

Intraday and positional trading are two distinct styles used by traders in the stock market. While intraday focuses on same-day trades, positional trading involves holding positions for days or months. Understanding the difference helps traders align strategies with time, risk, and capital.

Intraday trading involves buying and selling stocks within the same trading day. Positions are squared off before the market closes. Traders use technical indicators like moving averages, RSI, and candlestick patterns. Leverage is often used to amplify gains, but it also increases risk.

Advantages:

• Quick returns

• Lower capital requirement

• Daily opportunities

Disadvantages:

• High risk due to volatility

• Requires constant monitoring

• Brokerage and tax costs can add up

Intraday trading is generally practiced by active traders who can dedicate time and discipline.

• High Liquidity: Easy entry and exit.

• Leverage Access: Brokers offer margin for larger exposure.

• Frequent Opportunities: Daily trades across sectors.

• No Overnight Risk: Positions closed the same day.

• Technical Focus: Relies on charts and indicators.

Positional trading involves holding stocks for a longer duration—ranging from a few days to several months. It is based on broader market trends, company fundamentals, and macroeconomic factors. This style requires patience, discipline, and risk management.

• Less time-intensive than intraday.

• Lower transaction costs.

• Suitable for working professionals.

• Allows for trend-based profits.

• Less emotional stress.

• Subject to overnight and weekend risks.

• Requires more capital.

• Slower returns compared to intraday.

• May miss short-term opportunities.

Intraday is short-term and technical, while positional is long-term and trend-based. The choice depends on time availability, risk appetite, and trading goals.

Both styles have distinct pros and cons. Intraday is typically short-term and high frequency, while positional trading involves a longer horizon with different risk exposures.

This content is for informational purposes only and the same should not be construed as investment advice. Bajaj Finserv Direct Limited shall not be liable or responsible for any investment decision that you may take based on this content.