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Preetesh Ghatke
New to stock market.
Asked a question 4 months ago

What would you suggest for an intraday trader to begin with?

Abhishek Chinchalkar FYERS Team
For someone new to intraday trading, it is always advisable to begin with the cash segment first. This is because in the cash segment, the capital needed can be much smaller as you can customize the quantity of shares that you trade.

Let me explain this using Adani Ports, which is currently trading at around 850. When buying in the cash segment, I can buy as many shares as I want - 10, 50, 100, 1000 etc. Intraday margin will vary depending on the quantity of shares that I choose to trade. On the other hand, in futures, 1 lot of Adani is worth 1250 shares. Hence, when trading in futures, I have to trade a minimum of 1250 shares or in multiples thereof. The margin needed to trade 1 lot of Adani Ports futures is over 4 lacs. Now contrast this to cash. With a capital of, say, 50000 in my account, I can buy 1 or several shares of Adani in the cash segment, but I won't be able to trade even a single lot in the futures segment.

For someone new to intraday trading, this has dual benefits. One is, as stated above, the capital requirement can be smaller. As a result, one can trade in smaller quantities and with a smaller capital until he or she gains sufficient confidence to up the ante in trading. Other is that because of the smaller capital, the risk can be managed well, unlike in futures, where, because of the large capital and leverage involved, the quantum of draw down could amplify in a fast-moving market if the risk is not managed well.

Gradually, after gaining a good deal of exposure and experience trading in the cash segment, one could consider intraday trading in futures with proper risk management strategies in place. Meanwhile, shorting options is similar to buying/selling futures in terms of margin required and risk involved. Hence, shorting futures must be done by experienced traders having a very good understanding of options and a sound risk management policy in place.
Thangadurai Vijayapandi
I would say FnO. Mainly Options buying. If you know pulse of market you should do Options buy in intraday. (Bcz it is hard to predict ind. stock)
Suruchi Kapoor FYERS TEAM
So I personally feel if you are new to intraday trading you should always start with the cash segment. I totally agree with Abhishek Chinchalkar in cash segment you can easily manage your risk and once you get a hang in intraday cash you can then take it to next level.

Besides, this I just want to highlight that almost 2yrs back I shared my Intraday dish recipe :-) on the community. If you interested in reading my recipe, then you can click on the below mentioned link.
https://community.fyers.in/post/how-to-make-your-intraday-dish-spicy-and-crispy-5f747f1c1549c45738407fe9
Happy Trading!

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