Intraday vs positional trading is one of the most common comparisons new and experienced traders face in the stock market. Both methods have their own style, risks, and rewards. While intraday trading is all about quick decisions and short-term profits, positional trading is focused on patience and long-term outlook.
In this blog, we’ll break down both approaches, explain what intraday trading and what positional trading are, and help you understand which one may suit your goals better.
What is Intraday Trading?
- Intraday trading meaning: Intraday trading, also called day trading, refers to buying and selling stocks within the same trading day. The idea is to take advantage of short-term price movements and book profits quickly.
- No overnight holding: All positions must be squared off before the market closes.
- Traders mostly rely on technicals, chart patterns, and market trends.
- Common instruments include stocks, futures, and options.
In simple terms, intraday trading is like sprinting. It requires speed, attention, and quick decision-making.
What is Positional Trading?
- Positional trading, also called position trading, involves holding stocks for weeks, months, or even years.
- The focus is on long holding periods to capture major price trends rather than short-term fluctuations.
- Traders often use fundamental and technical analysis to identify opportunities.
- There is no need to square off the trade daily; you hold until your target or thesis plays out.
In simple words, positional trading is like running a marathon. It’s about patience, discipline, and trusting your strategy over time.
Key Differences: Intraday vs Positional Trading
Here are the major points of difference between intraday vs positional trading:
| Factor | Intraday Trading | Positional Trading |
|---|
| Trading Duration | Positions last within the same trading day. | Positions can usually last for weeks, months, or even years. |
| Risk Factor | Higher risk due to market volatility | Lower day-to-day stress, but exposed to overnight and systemic risks. |
| Capital Requirement | Often requires less capital as brokers provide leverage facility to traders | Requires higher capital since positions are carried for a long duration without leverage. |
| Analysis Type | Relies on technical analysis and price patterns. | Uses both fundamental and technical analysis |
| Profit Potential | Quick, small profits multiple times a day. | Larger profits from long-term price moves. |
| Time Involvement | Needs constant monitoring and active decision-making throughout the day. | Less time-sensitive than intraday. |
Advantages of Intraday Trading
The advantages of intraday trading include:
- Quick profits if trades are successful.
- No overnight risks since positions are closed daily.
- Can make use of market volatility.
- Leverage benefits offered by brokers.
Disadvantages of Intraday Trading
The disadvantages of intraday trading include:
- Requires constant attention and monitoring.
- High risk due to volatility.
- Stressful for traders who lack discipline.
- Brokerage charges may eat into small profits, if not careful.
Advantages of Positional Trading
The advantages of positional trading include:
- Focus on long-term trends rather than short-term noise.
- Less stress compared to intraday trading.
- More suitable for working professionals who cannot watch markets all day.
- Potential for significant profits from large price moves.
Disadvantages of Positional Trading
The disadvantages of positional trading include:
- Exposed to overnight and weekend risks.
- Capital remains tied up for extended periods.
- Missing out on short term opportunities.
- Patience is needed; it may not suit traders who seek quick results.
Which One is Right for You?
Choosing between intraday vs positional trading depends on your personality, risk appetite, and time availability.
- If you enjoy fast-paced action, would like to capitalise on short-term price movements and have time to monitor charts, intraday trading may suit you.
- If you are patient, have a full-time job, and prefer steady growth, positional trading could be better.
There is no single answer. Some traders even combine both strategies depending on the market situation.
Things to look out for as Beginners in Intraday and Positional Trading
The following points can help in intraday and positional trading:
For Intraday Traders
- Always set a stop-loss to limit risk.
- Start small and gradually increase capital.
- Avoid overtrading and revenge trading.
- Stay updated with market news and events.
For Positional Traders
- Study fundamentals like earnings, company growth, and financial health.
- Use weekly and monthly charts for analysis.
- Be patient; don’t panic during small corrections.
- Diversify across sectors to balance risks.
Real-Life Example: Intraday vs Positional Trading
Imagine Stock A is trading at ₹100.
- Intraday trader: Buys at ₹100 and sells at ₹102 within 2 hours. Profit = ₹2 per share.
- Positional trader: Buys at ₹100 and holds for 6 months. Stock rises to ₹150. Profit = ₹50 per share.
This simple example shows how both methods can be profitable, but the style and timeline are very different.
Common Mistakes to Avoid: Intraday vs Positional Trading
The following common mistakes are better to avoid when trading:
-
Intraday traders:
- Trading without a plan.
- Letting emotions control decisions.
- Ignoring risk management.
-
Positional traders:
- Reacting to short-term market fluctuations.
- Not researching fundamentals.
- Failing to set proper stop loss
How Tradomate Can Help You
At Tradomate, we know that every trader has a unique style. Whether you are exploring intraday trading or want to master position trading, our AI-powered screener helps you in every way. You can:
- Screen assets based on your preferences by simply typing your conditions in the language you prefer.
- Integrate sentimental analysis in your screening to ensure you are factoring in the risk of unexpected global events.
- Backtest your entire screen to see what works and how well it works before you take a trade.
- Find which stock formed which pattern, how often it occurred, and its best holding period with its historical TP & SL, all from our Insights page.
We’re not just another trading tool. We’re your partner, guiding you step by step so you can trade intelligently. Get started here.
Final Thoughts on Intraday vs Positional Trading
Both intraday vs positional trading approaches have their pros and cons. Success depends less on the method and more on discipline, knowledge, and risk management.
If you are new to trading, it’s wise to try both methods on a small scale and see which one fits your style better. Over time, you can adjust or even mix the two to create your own trading strategy.
To know more, explore Tradomate’s expert trading blog section!
