5. Trading of Mutual Fund and ETFs Mutual funds and exchange-traded funds allow investors to divers
5. Trading of Mutual Fund and ETFs Mutual funds and exchange-traded funds allow investors to diversify across an investment portfolio consisting of equities and bonds, among others. Unlike the former, the latter trades like equities. This instrument provides opportunities for investing in a broad cross-section that is useful for long-term risk-averse investors. 6. Intraday Trading A day trader in intraday trading buys and sells securities within the same day. A day trader profits through short-term price movement in fast decisions and technical analysis. Although it is very lucrative, there is a high risk because of market volatility in a day.