WHAT IS INTRADAY TRADING?
The name “intra-day trader” refers to a stock trader who opens and closes a position in a security in the same trading
day. This can be buying and selling to capitalize on a potential rise
in a security's value or shorting and covering the short to capitalize
on a potential drop in value.Day traders and intra-day traders are at the top of the risk
spectrum. They participate in rapidly changing market conditions,
looking for quickly developing profit opportunities. Mostly these
traders employ technical analysis to determine when conditions are right
to enter either long or short, and then to exit (hopefully with a
profit).Intra-day traders are mostly full time traders and it is imperative that
they dedicate themselves to the task during whatever market hours they
trade. This usually requires the trader to dedicate themselves to
continuous monitoring of one or (preferably) several screens of data in
order to identify the most favorable market conditions and moments to
enter and exit trades. Many intra-day traders have developed automated
systems. They simply start their trading programs and let the computer
do its job.
While stock investments can yield stupendous returns, be content with small gains from intra -day trading.Even the most sophisticated analysis cannot predict which way the market will move .Intra-day trading carries more risk than investing in
stocks and an unexpected movement can wipe out their entire investment
in a few minutes.Intra-day traders must square their positions at the end of the trading session.The psychology of the buyer changes after they have
bought a stock, which could interfere with their judgment and nudge them
into selling too quickly even if the price moves up marginally.
Day trader hold their security for one day only. In intraday trading a trader buys and purchase a stock within a single day. It is a short term strategy to gain profit from sudden movement of a stock price.
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