What is long term share trading and how is it differs to intraday share trading?

 

We often get asked what is the difference between long-term share trading and intrady share trading. Long term share trading is when you buy shares from a company and keep it for a at least a few years before you sell it off. It is in accordance with the current state of the market and you can reap huge profits. It is for those who don’t like playing around with their luck. While making a long term investment, a trader always thinks and after pondering a lot, decides whether to invest or no.

While, day trading on the other hand is the practice of trading a commodity within a working day. Its trade is completed within the working hours. The commodity losses value after midnight. Intraday trading is based more on predictions and luck. No doubt, you need to have knowledge about trading, but here you need to be spontaneous and make decisions on the spur of the moment. You have to finish trading your commodity by the end of the day otherwise the system automatically sells it off.

Long term share trading differs from the intraday trading in many aspects. Intraday trading can be considered a short term investment in a way, where the commodities are sold within a single working day. In long term share trading the commodities are kept for at least one or two years until they are sold.  Long term share trading is considered to be safer as your trading time is stretched and you aren’t at the mercy of a few seconds.

Predicting prices within few seconds is not all that easy unless you are pro! Many a times lack in knowledge in these lead to losses. In long term investment you can study the fluctuating market over a period of time and gain an insight by observation. This makes it easier to generate predictions. In general, you can expect good returns from the long term investment. These outline the basic differences between intraday trading and long term trading.