Intraday Trading |
| Intra-day trading strategy is defined as an overall trading strategy characterized by the regular transmission by a customer of multi intra-day electronic orders to affect both buy and sale in the same security or securities. |
| Before you get excited about the simplicity, bear in mind that there is not a magic formula to success. Intra-trading requires you to be quick and always on your toes. Traders that are successful have a method or a system that they work, they do not deviate, and they repeat their methods over and over again. |
| A day trader is described as - an individual who conducts intra-day trading in a focused and consistent manner with a primary goal of earning a living through the profits derived from trading strategy. Intra-day trading is where day trading takes place and takes advantage of the small daily price changes with stock, don’t think you can sit on your laurels with this form of trading; you need to act fast and instantly. The stocks are held for minutes, or maybe hours and are nearly always closed overnight resulting in small profits or losses. |
| The advantages of intra-day trading are, with the trading opportunities being more frequent, you are able to trade with a daily chart and cut any losses very quickly, also there is no overnight risk, trading always ends before close of day. |
| There are disadvantages to intra-day trading, in that you will miss out on the longer term swings and trends, and because the swings are shorter it follows that the profits will be smaller too. Another disadvantage is your expenses; your expenses will be higher due to the more frequent commissions and slippage. |
| Helpful Tips for Intra-Day Trading |
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| There are various tools you can use, most are based on trend following or range breakouts whilst others have more advanced calculations and pivot points |
| Wise rules of Investing - Financial Planning | Investing during Bear and Bull Markets |
