As an investor you have heard many times of various strategies to earn from stocks. For long-term gains, you are advised to invest in stocks for a long-term. However for high and quick profits, traders tend to delve in the method of day trading. 

How is Day Trading Defined?

Day trading or Intraday trading is a way of trading where trade positions are taken in the beginning of the day and are closed off towards the closing of trade day.

A trading account is one of the most important things to consider while opening a demat account for trading. It is important that one understand the functions of the trading account before choosing your provider. 

Intraday Trading is one of most used methods for cashing on the opportunities for profit in the market. To reap the benefits of intraday trading, you need to invest capital with larger positions. Since the value of trade is high, ensure you open a trading account with negotiated brokerage rates.

Benefits of Intraday Trading Account

1. Intraday trading account does not require you to take the delivery of the stocks but squares off the position by the end of the day and gives you the profit or loss. 
2. A trading account is the settlement channel of all your intraday trades. It will help in transactions, executions and settlement of all trades. 
3. You will get net profit and loss position of all your trades as maintained by the trading account.
4. Usually brokers offering intraday trading also have technical and research calls given to bring your attention to various stock movements. You can time your trades accordingly
5. Intraday trading accounts also provide the opportunity to take higher leverage (debt) from the broker and take a large position which would not be available otherwise.
6. Intraday trading accounts should be usually separate from the normal long term trading account as the Income Tax rules are different for both. A good intraday trading account will help you keep both separate.
7. Trading high on intraday can earn you lower brokerage rates.

Acing Intraday Trading

Intraday Trading is all about understanding the movement of stocks based on sentiment and news. To really earn well, you have to be first ready to take up losses. Secondly, ensure to follow the news, research, and buzz around various industries and stocks to know the likely market movement. There are various thumb rules followed in intraday trading but experienced traders always top it with their well-trained instinct. Focus on making small profits with multiple trades in place and minimizing your potential losses. Ensure you use only 50% of your investible money into intraday trading and rest is in regular long term investments. Once you are confident of picking up the intraday trading game, then go for margin trading - or trading on borrowed money from your broker.

Lastly use a competent and technically sound platform for day trading so you can avail the benefits of customized trading packs which combine high value service at low brokerage cost to suit high volumes of intraday trading.