Several people in India have, over the past decade, earned considerable money and popularity. It has intrigued more Indians to try out Day Trading, and the ones who did are most likely to have recognized the innumerable benefits of Day Trading. The people who are trying their luck with it are sticking to it. This blog will help you find precisely why!
But before that, let’s try to gain a brief understanding of Day Trading.
What is Day Trading?
The term “Day Trading” is used to define the practice of buying and selling securities within a single trading day. For instance, if you have bought 20 shares of Hindustan Unilever in the morning, you will have to sell your position by the end of that day itself and start afresh in the morning.
Day Trading mainly involves implementing trading strategies to capitalize on and earn maximum profits from minor price changes in any high-liquid traded instruments.
What are the most popular Day Trading markets Today?
Today’s most lucrative Day Trading markets include Forex, Stocks, Cryptocurrencies, Options, Futures, and Commodities.
Also, the four most commonly used Day Trading techniques include ‘Contrarian Investing,’ ‘Scalping,’ ‘Following the Trend,’ and ‘Trading the News.’
Why is Day Trading Picking Up in India?
1. Thousands of Success Stories Together Acted as The Accelerator!
Several famous Indian traders like Sudarshan Sukhani, Vijay Kedia, Rakesh Jhunjhunwala, Porinju Veliyath, and many others have witnessed outstanding and overwhelming success Day Trading. When they shared their success stories, it inspired more Indians to explore Day Trading. These successes gave more people confidence in the authenticity of this form of trading. Trading does require a lot of effort, knowledge, practice, and experience, but these success stories have made it look pretty attainable for even the common people. Just hearing about people from your country making millions with Day Trading, wouldn’t that intrigue you naturally? That is precisely what happened with Day Trading in our country, and it has become as popular as it is to this day!
2. The Pandemic Made the Common People Look for Money-Making Opportunities.
Since the beginning of 2020, the world has seen a lot. The pandemic had made people lose their immunity, lose their jobs, lose their money, lose family, lose sanity. People have desperately been trying to look for money-making opportunities to survive through the pandemic. No one knew when the job market in India would stabilize again, and we all did our best to secure ourselves financially. In the light of the pandemic, Day Trading seemed like a ray of hope. The Indian people figured out pretty quickly that Day Trading could make them extremely rich incredibly fast. Every other type of trading involves enormous risks; the higher the level of risk, the higher the profit margin. But they also knew that Day Trading came with its own set of inevitable risks. But the losses witnessed by people through this pandemic were so huge that these risks did not bother them. Why? Because they felt they did not have much to lose. The high-profit margins and the numerous success stories associated with Day Trading made people move ahead with it without worrying much.
3. A Faster, accurate and secure trading method was introduced – Algorithmic Trading
With technology evolving rapidly there is one more popular day trading technique that is picking up in the market – Algorithmic Trading. Introduced by SEBI in the year 2008 in India, Algorithmic trading was restricted to institutional investors only but with its exceptional execution and performance it is now available to the trading community too. Some of the popular Algo Trading platforms in India include AlgoBulls, Streak, and many more.
4. Day Trading is Pretty Affordable and hence, Easily Accessible.
As the popularity of Day Trading was setting in, several famous broking houses decided to start their applications and platforms that our tech-savvy Indians embraced happily. Since the market of automated trading processes is highly competitive, broking houses had to offer services at meager commission rates. The low commission rates made the broking fees affordable for most people. Day Trading is easily accessible. Anybody can set up a trading account and start with Day Trading. This easy access has encouraged most of us to try our luck with Intra-Day Trading. But this does negate the requirement for some basic trading knowledge before landing into the trading landscape.
5. A Pool of Online Tutorials & Guides Surfaced to Inform the Common People about Day Trading.
The amount of information available online about Day Trading has made it easily understandable and accessible for us. Also, we Indians are primarily known for making detailed tutorials on almost anything and everything essential, necessary, and possible. And Day Trading has not been left behind by our content creators and subject matter experts. Beginning from YouTube Videos and podcasts to blogs and guides, you will find everything on Google! Plenty of content is available online to help you understand all the aspects and possibilities of Day Trading. Hence, we have enough information to step into Day Trading well-aware, making it so popular in India. The easily accessible knowledge about Day Trading makes it more popular in India.
6. Day Traders began to be admired in India, and the common people wanted that too!
Indian communities look up to Day Traders because they play their game by their own rules and earn profits for themselves. People admire the risk-taking ability of the Day Traders. Also, Day Traders are usually self-employed, which means freedom! They are perceived as independent entrepreneurs who have in-depth knowledge of the market and know how different trading strategies work. And since it takes years of studying, hard work, risk-taking, and experiments to earn massive profits from Day Trading finally, the Day Traders have naturally earned a significant reputation in our country. In fact, for many budding traders and Day Trading enthusiasts, many famous Indian traders act as role models. We respect them and want to be like them.
Day Trading has already become immensely popular in many countries around the world, and very recently, the popularity has gained visible momentum in India. Everything only worked in favor of Day Trading, from the success stories to the pandemic to several other socio-economic conditions, making it so popular in India!