Short-Term Trading Techniques

Short-Term Trading Techniques

What is Intraday Trading?

Intraday trading involves buying and selling securities within the same trading day, with all positions squared off before market close. Unlike regular trading, where settlement occurs over time, intraday trading demands quick decision-making and execution to capitalize on short-term price movements.

Advantages of Intraday Trading:

Challenges of Intraday Trading:

Strategies for Intraday Trading:

Tax Implications:

Income from intraday trading falls under speculative business income and is taxed according to the individual’s applicable slab rate. Deductions for expenses such as internet charges, telephone charges, broker’s commission, and demat account charges are permitted. Losses from speculative business can be carried forward for up to four years. Individuals are required to file ITR-3 for reporting intraday trading income and losses.

Understanding the intricacies of intraday trading empowers traders to navigate the volatile market landscape effectively, optimizing opportunities while managing risks prudently.

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