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Debbie Mascarenhas made post

Why do intraday traders actually trade intraday?

Answer
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sarah Leo answered.
2 years ago


That is a great question and perhaps successful intraday trading has its roots in this question. An intra-day trader is a particular and unique type of stock trader. This trader both opens and closes a new position in a stock in the same trading day. There are many reasons why a trader may do this: they may want to capitalize on a short-term rise in a security’s value or short the security to capitalize on a drop in value. They also utilize leverage in order to amplify their returns, although this also increases their risk levels. Intraday traders also believe that it offers a viable way of earning regular money as long as the basic rules of discipline are adhered to.
Did you know that intra-day traders operate with some of the highest levels of risk in the entire broader market? That is why managing this risk becomes so important. Day traders participate in market conditions which change incredibly fast, and they capitalize on these quick shifts in order to try to develop opportunities for profit. They usually use technical analysis to determine when conditions are the best to either buy or sell. They also use stock fundamentals and news flows for their trading decisions. Of course, with higher risk comes increased potential for high return on investment, too.
In order to stay on top of the latest trading activities, intra-day traders are almost always full-time, professional traders. They continuously monitor multiple screens of data in an effort to track down the best market conditions and the ideal times for entering and exiting trades. For example, an intraday trader may also look at gold prices to take a call on Titan or may look at copper prices to take a view on Copper etc.