Intraday Trading

Commonly referred to as Day Trading. Intraday Trading is a style designed to capture profits from markets based on short term, intraday movement. These traders will attempt to identify short term trends in their chosen markets and close all positions by the end of the day.

Some intraday traders will be in and out of positions very quickly similarly to a scalper. Others will hold trades for several minutes to hours. Some will hold for a swing, for example buying on a dip in price and selling on the swing up. They’ll perform these types of trades multiple times per day on both the bull and bear side.

Another approach is to try to identify an intraday trend and hold for the duration of the trend throughout the day. Often times these traders will add to their positions in the pullbacks. This maximizes the profitability of the trend. This is often referred to as intraday position trading.

Regardless of their individual approaches, true intraday traders will be flat at the end of the day. they never expose their capital to overnight risk.

Indicators that Intraday Trading may be right for you:
  • Make good decisions quickly.
  • Can’t sleep with money in the market overnight or over the weekend.
  • Comfortable with being active in trading throughout the day.
  • Perhaps, you don’t have the patience to hold a position for days or weeks to learn the outcome.

You may want to take a look at the various intraday trading methods taught by coaches in the Trading Coaches section of TradersInfoHub.