What is Day Trading or Intra Day Trading?: In Financial market there are so many types of trader’s and they can have differ type of trading goals. Many trader’s like to do trade with a long term purpose where they hold their trades for a long term like 2 to 3 months and less than that. And many of them loves to do trade with a medium term goal which can be related to a medium term trading goal where trader’s hold their trades for couple of days or one or two weeks. Beside of it a short term trading analysis and goal is totally related to the short term trading result, So what is Day Trading or Intraday Trading all about? in this method a trader has a goal to achieve his or her trading goal within a short term of time period which can be called as an day trading also. It is the combination of two words Day+Trading.
Day trading is that type of trading where a trader always try to close his or her trade’s on a daily bases. This is a short term type of trading which is called as an intra day trading also. In this method trader’s pay attention on short term price movements and they use differ kinds of trading strategies to understand those short term price movements so that they can get a few amount of pips movement every day. A day trader has a daily bases of trading goal and they calculate their progress on short term trading bases like 2,3 days weekly etc. Though its not so my easier to understand the short term movements and a trader should have a long year’s of experience to do better short term trading or day trading. Because in day trading we have to deal with so many differ types of patterns, differ types of market uncertainties, quick execution, fundamental’s, etc.
Day Trading Meaning: Day trading is a short term based trading style in which a trader close all his or her trades on day bases or within the end of the day. Buying and Selling of an financial instrument can be related to the forex market, stock market, cryptocurrency market, commodities etc. Day trading can be executed in all types of trading instruments.
Trading with Day trading has its own advantages but a proper skill should be there to get a best result from it. Personally we would suggest trader’s to understand the long term trading at first they should try to understand and learn things in starting. Day trading is for those trader’s who have enough trading skill and experience in financial market, for a novice it will never be easy to deal with all these day trading hurdles.
How Does it Work?
As we discussed above that day trading can be done in so many ways, you should have your trading niche so that you can have a better idea that on which certain point of the market you have to go with a buy and sell. There is no proper answer for this that when you have to exactly enter and exit, trader’s have their own approaches and styles those suggest trader’s to when to enter and exit from the market. For example if you have a very short term target of 5 to 10 pips scalping would be a better choice, on the other hand if you are looking to 30 to 50 pips on day bases then you can go with the market trend. So its your choice totally that how you have to deal with this market. Education is not limited here, every day you could have new things in market and a new type of trading experience you can get. A financial market is full of surprises and every day is a new day for most of us. Let’s us talk about some of the important things those you should follow before or during the day trading execution.
Important things to remember:
Know your Trading Niche: A trading niche show’s that which kind of trader you are, are you a very short term trader or long term trader?. You should have also a good idea of your trading method that what kind of trading method suit to you, look there are so many trader’s who don’t have a lot of time for their charts to analyze so they does like to work with long term market view. Day trading is only suitable for those trader who can spend at least 2 to 3 hours on chart every day. Day trading is based on quick execution and exit so you have to be more quicker than a long term trader here. So we will suggest you to find our your trading niche at first and you can surely do day trading if it suits to your trading character.
A Good Trading Strategy: A good trading strategy is most required when you have a good short term goal, you should have a good trading strategy which can tell you about a best entry and exit point, keep in mind that decision should be made properly otherwise later we can’t do anything if once we got placed our trade. Its hard to change the plan in the middle of trading most of time so should have a good strategy as well.
Trading Plan: Trading with a good trading plan is very necessary, you should have a good trading plan, a trading plan can be related to each of your trading activity. like which kind of strategy you need, what kind of management you have to follow, and what kind of Plan B we have to execute during the opposite trading result.
Trend is Friend: Trend is our friend and this is one of the true thing in any financial market, look trading against the trend would not be easy to do at all, we know that so many trader’s are doing it but for the better result following trend is one of the best thing in forex, even the long term trader’s has a same goal to follow their trading approaches in a financial market. Most of professional trader’s also suggest to go with the trend.
Know your management:Trading with a good risk management and money management is very necessary, going against our management would bring disaster in our trading and at the end we will lose our trading account, and look what is our goal here Day Trading? which would become more painful because you will lose everything in one single day so during the day trading keep your money management and risk management very strict.
Day trading is a profitable trading style only for those who have a long term trading experience in this field, even new trader’s can get success after a while but there are so many other trading styles or method’s those can work for them nicely rather than the day trading. We are not against the day trading but all those trader’s who have a long year’s of experience in this field they mostly recommend long term trading goal. Though financial market knowledge is not limited this is an art, and trader’s can become successful in day trading as well. So its totally depend you that you have to go with short which is day trading or you have to go with long term trading. But we will suggest you to follow all these important things so that you can get some advantage to perform with your day trading approaches.