Expert Chaslau Koniukh
  • Companies
  • Global investment
  • Investors
  • Terminology
  • Economy
  • Stock Market
  • World exchanges
  • Tech and Marketing
intraday trading
Market terminology

Intraday trading: basic approaches for trader activity

04.12.2020
2 min read

How intraday trading works and its prospects

Intraday trading is a useful tool for operating in the stock market. It represents the conclusion of short-term transactions, which should be carried out during the day, without delaying the next day. Day Trading requires quick reaction and monitoring of any changes in the market. In this case, it is important not to miss out on value fluctuations, news that will allow you to make a profit here and now.
Often, to have a high income, traders use the method of margin trading. However, such an instrument is associated with risk, as opposed to intraday trading. Day Trading is based primarily on technical analysis, giving secondary importance to the study of securities.
In the USA intraday trading has been practiced since 1996. In the 2000s on the NASDAQ exchange transactions of this type made up 15% of the total amount, nowadays the type of trading is considered to be the main market engine.
The same assets are used for intraday trading as for other types of trading. The difference in this case is the period of transactions and the use of highly liquid assets.
Short-term transactions are inferior to medium and long-term ones in terms of profitability, and in order to get good profit market players try to make a large number of transactions in a short time.

intraday trading

An important point in action trading is to close all positions by the end of the day. There are two approaches – scalping and intra-trading, based on news. The first option is a procedure of setting a certain threshold to close positions. Although scalping is considered a simple strategy, it works well. The essence of it can be seen in the following example: if there was a plan to close 5×5 positions, then as soon as the trend positions change by 5 points down or up, the trader must close the deal anyway. If the positions go to the plus, the broker will get a profit, otherwise it will go to a loss.
In order to maximize the probability of income, the trader uses technical analysis. In addition, it is necessary to place the Stop Loss at a position close to the price. In this case, you should consider the rule that will help to avoid losses – the position should be closed as soon as it changes by 5 points. Maximum value for the position is set individually by each trader.
Success in scalping requires the right moment to enter the market. In most cases this is done when the trend is moving gradually.
Using a trading strategy on the news, the trader should monitor financial and economic news, which may indicate a positive trend.

Tags: Market terminology
0
Previous Post Russia's sugar industry is in crisis: causes and solutions Next Post Glencore International: the company sector and structure

You Might Also Like

Short Squeeze
Market terminology
What is Short Squeeze in the market, and how to anticipate it
17.02.2022
contract for difference
Market terminology
How convenient is the contract for difference: features of the instrument
12.07.2021
Types of market strategies
Market terminology
Types of market strategies in trading activities and their features
29.11.2021
mean reversion
Market terminology
Mean reversion: features of a trading strategy
02.07.2021
mechanical trading systems
Market terminology
Why mechanical trading systems should be used to trade in the market
13.01.2021
trade risk
Market terminology
Trade risk for companies: types and ways to reduce damage
15.09.2020

Recent Posts

  • 1How IT is used in banks
    How IT in banks helps transform the sector
    24.05.2022
  • 2Development of the financial sector-1
    Development of the financial sector in terms of DeFi potential
    23.05.2022
  • 3export volumes
    India’s export volumes rise to record levels
    22.05.2022
  • 4Ma Huaten
    Who is Ma Huateng: a professional history
    21.05.2022
  • 5Lenovo Group
    Lenovo Group: the history of the famous electronics brand
    20.05.2022

Popular Posts

  • Businessman Chuck Feeney: the man who gave the world Duty Free
  • Field of activity of the American Monsanto Company Corporation
  • Skolkovo analysts: the Russian energy market is suffering losses
  • An analyst at Finam: should we expect a global financial crisis?

Social media

Editor's Picks

Chaslau Koniukh
Analytics

American bankers from JPMorgan and Goldman Sachs advise to invest in gold: review by Chaslau Koniukh.

Spokesperson
17.08.2020
Expert Chaslau Koniukh
Analytics

Chaslau Koniukh on the analysts’ opinion on the key stake size change soon

Spokesperson
18.06.2020
expert Chaslau Koniukh
Analytics

Chaslau Koniukh: Internet trade market in Russia may reach 2.78 trillion rubles.

Spokesperson
30.05.2020
Will the U.S. oil shale industry be able to quickly recover from the crisis: A Review by Chaslau Koniukh
Analytics

Will the U.S. oil shale industry be able to quickly recover from the crisis: A Review by Chaslau Koniukh

Spokesperson
16.05.2020

Latest Posts

guidelines for cryptocurrency exchanges
Canada releases guidelines for cryptocurrency exchanges
25.05.2022
How IT is used in banks
How IT in banks helps transform the sector
24.05.2022
Development of the financial sector-1
Development of the financial sector in terms of DeFi potential
23.05.2022

Chaslau Koniukh

Expert Chaslau Koniukh

Chaslau Koniukh – an expert in marketing and project management, IT consulting, international investments, investor, financial analyst. A commodity trader, private consultant, entrepreneur, lecturer, author of several articles on the stock market.

Popular Posts

  • Businessman Chuck Feeney: the man who gave the world Duty Free
  • Field of activity of the American Monsanto Company Corporation
  • Skolkovo analysts: the Russian energy market is suffering losses
  • An analyst at Finam: should we expect a global financial crisis?
  • Britain and Turkey sign free trade area agreement
Expert Chaslau Koniukh
  • Facebook
  • Twitter
  • Instagram
  • Biography

Chaslau Koniukh – an expert in marketing and project management, international investments, financial analyst.

Social media

Menu

  • Biography
  • Companies and corporations
  • Global investment
  • Investors and Entrepreneurs
  • Economy
  • Market terminology
  • Stock Market
  • World exchanges
  • Tech and Marketing
  • Analytics