Intraday vs positional trading: Which one should you opt for?

In the share market, traders have the option to choose the type of trading from the two main available options -- intraday and positional. Traders can either choose one of the options or both of them.

As the name suggests, intraday trading refers to entering and exiting positions on the same day. It is aimed at capturing very small moves, typically 1 percent or less. On the other hand, positional trading involves entering a position on one day and exiting it a few days or weeks later. Sometimes, a positional trader could also exit his or his position after a few months.

The magnitude in position trading, Abhishek Chinchalkar, head of education, FYERS explains, can vary from trader to trader, but a positional trader typically aims at capturing 5-30 percent type moves. However, the percentages can vary depending on the volatility of the security in question.