Before now, the chance to trade the markets only existed for analysts who worked with the “big guys” — large financial institutions. However, the fast rising of the internet changed the game, creating the chance for online brokers to leverage the average investors. As usual in trading, complex strategies are employed to ensure against not being scooped by the “big guys” in the game. Usually, traders observe their styles and patterns and align with either Fundamental trading which focuses on the triggers of major news, or a Technical who trades using tools and strategies. Though there are many established Technical trading strategies and more still budding, one of the most lucrative of them is “Day Trading”, also known as “Intraday Trading”. Essentially, Intraday Trading is one strategy that can be employed to make profits.

Simply put, day trading is the

Simply put, day trading is the act of trading securities, options stocks any other instrument in the course of the day. Basically, it involves the act of entering and exiting the markets the same day. A position is opened and held for some minutes to rake in quick profits from intraday price actions. As such, day traders may be found entering and exiting the market countless times before the daily close of business. Despite the fact that it appears straightforward, it may cause massive loss(es) if proper strategies are not put in place. In any case, some practical tips to boost your Intraday trading career may include:

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1. Seek Knowledge: You need to conduct a proper research to determine the asset to focus on. Normally, day trading exposes your capital to various forms of price actions including the volatile, choppy and the quiet ones. This makes it a necessity you as an intraday investor to be well-versed in the “what”, “why” and “how” of the intraday price actions. In essence, there is a need to have an economic calendar, recognize the triggers of the market, understand the necessary trading techniques and most importantly, know when to enter and exit the market.

Some Helpful Intrada Trading Tips

2. Gather Adequate Funds & Assess Risks: Customarily, trading requires adequate funds to stay in business, but it is more essential for a day trader to be well-funded. As such, adequate funds should be readily available so as to effectively take on the price actions that occur during the day. Once the adequate funds are gathered, the trader must calculate the percentage of the entire capital that can be risked on a position. Although not a compulsory strategy, experts have advised risking very minimal fraction of their capital (mostly in the range of 1 to 2%) on each trade. This means that a trading account worth $50000 should advisably risk a maximum of $1000 per trade.

3. Emotion Intelligence & Calculation: This has to do with entering and exiting the markets at the appropriate time. Due to the various kinds of price actions the day trader is exposed to daily, calculation and emotional intelligence are non-negotiable. Simply put, there must be a threshold time deciding how long to hold a position before closing it. Similarly, emotional intelligence is essential to guide against reckless opening and closing of positions.

4. Set Only Realistic Goals: As the experts would say, there is no 100% winning in every trade as even the professions win between 50 to 60 trades out of 100. As such, only realistic goals should be set — goals that can be achieved without jumping in on every trade. In essence, a day trader should stick to the plan of trading only a certain fraction of the trading account. This way, there is less pressure and the mind is relaxed to calculate more profitable entries and exits.

The crux of the matter is that intraday trading requires much skill and practice. As such, any investor considering a career in this trading must be well-equipped with an extensive knowledge of the strategy. Moreover, capital is of great as well because it determines how long the trader desires to stay in business. Emotional intelligence and self-control cannot be swept under the carpet as well as they are great pointers to the profit or less level of the investor. Ultimately, although day trading is not for the weak at heart, it can be immensely profitable if diligence is put into it with consideration to the few tips listed earlier.