Features of intraday trading
With the development of the Internet, this type of distance earnings, such as trading on the stock exchange, is gaining more and more popularity. It allows you to start earning tangible additional income at minimal cost, and if you want to make it the main source. There are many types of trading, but intraday trading is the most popular.
Definition of trading and its classification
Trading is essentially speculation. The enrichment of the trader occurs through the purchase of assets and their further sale at a higher price. Not a single trader is interested in the personal use of the acquired assets – this is not their sphere; they work exclusively with sales transactions.
As in any other type of activity, in the course of time, several areas have emerged in trading that have become decisive in the choice of strategy for each individual trader. So, trading happens:
Intraday. The player who has chosen this direction concludes transactions during one session and closes all his positions before the trading day ends. He invests a little, earns a little, but compensates for this with a high frequency of transactions.
Positional. Such a player concludes transactions for several days, but closes them before the beginning of periods of low liquidity – for example, before the New Year holidays.
Short-term investment. A trader playing according to this scheme concludes only a few transactions a year, and most often closes them in case of changing weekly trends.
Long term investment. The largest and most profitable deals are made in this format. They last up to several years, and depend solely on global trends.
As you can see, in the world of exchange trading, there is a place for players with any starting capital and any degree of risk appetite. Most beginners, however, opt for intraday trading. The site elgreloo.com suggests talking about the methods of this particular form of exchange trading.
What is intraday trading?
So, as mentioned earlier, intraday trading is the opening and closing of transactions during one trading session. This is a trading style aimed at minimizing risk and therefore ideal for beginners who are just starting to gain experience. In addition, this is the most dynamic style often chosen by players with an active lifestyle who do not want to spend a lot of time tracking global market movements.
The very essence of intraday trading – making a profit every day several times a day is also very suitable for those who want to immediately feel how playing the stock exchange improves their quality of life. No need to wait to make a decisive throw and hit the big jackpot – or lose everything at once. You can increase volumes gradually, gradually increasing revenues and not risking large capital. If you are not a fan of going all-in – this is the style for you.
Exchange Day Trading Methods
In such a broad direction, sooner or later, their own units could not have arisen. At first, they were single tricks, but in the end they themselves grew into full-fledged trading styles, each of which a trader, aimed at concluding intraday transactions, can be guided by the choice of tactics for their actions in the market.
Scalping is the most popular and well-known direction of intraday trading, often distinguished as a completely independent style. It features ultra-short transactions – literally up to fractions of a second. The profit from each transaction is calculated in just a few points, however, due to the incredibly high frequency of their conclusion, the trader’s earnings in one session can reach quite impressive sizes.
Trend trading. Intraday trading has a distinctive feature – frequent trend reversals. Catching the direction of the trend and playing on it is one of the methods of making money on the exchange.
Trading against the trend. The opposite of the previous method – earnings are carried out in the absence of trends. A rather risky method, however, capable of generating significant income with a certain level of skill.
Range trading. Game on the lateral movement of the price. It requires a sufficient level of experience and the ability to correctly assess the direction of the course in a constantly changing market situation.
Intraday trading is a way that is increasingly gaining popularity in an unstable crisis market.
Players who adhere to this trading style ensure the safety of their investments from a variety of factors, ranging from global trends to the daily risk of gap formation.