This form of exchange is another similar, but different form of day trading. This exchange type happens on a larger scale, in shorter time intervals, and with very small return opportunity. This places the intra-day trading into the most risk heavy exchange market. The conditions of the market change rapidly and the winning trade can turn sour in a matter of minutes. The understanding of the charts and the ability to perform quick technical analysis are the skills an intra-day trader needs.
The investor has to monitor several different data sources (charts) and performs multiple analytical analyses at the same time. This requires full commitment to the trading. Due to this rush-hour, the traders pick one trading session per day, some more extreme individuals go with two. The experienced traders can earn a lot due to skills they developed over the course of trading. Those skills include the ability to recognize patterns without any help. This makes it possible to avoid any form of analysis and still have a fruitful trade.
Rules that every intra-day trader follows
When the deal goes sour, a trader should use the stop option that will reduce their losses. They will not negate them; only reduce the amount the trader loses.
Considering yourself as an investor is incorrect. An investor is someone who invests money in stocks and shares and keeps them for very long time. The trader is the individual that buys and sells those shares to gain smaller profit in short period.
Investing more than you can lose is a bad move. It’s always smart to have funds to get you out of the possible loss. If you invest everything, then you risk total loss, and that is not the way an intra-day trader operates.
Trading anything but highly liquid shares is insanity. Those shares fluctuate quite frequently, and that is excellent for intra-day trading.
An intra-day trader is satisfied with a small return. Greed and fear are two big enemies of every trader, including this one as well. Greed will make him push his luck and fear will force him to pull out of the trade too early. In both of these cases, the trader suffers some loss, whether it is the loss of profit or loss of the investment.
Intra-day scalping trades
This form of exchange is the extreme version of the intra-day trading. The point of scalping is to spend the least amount of the time on the market. This does two things for the trader. Scalping reduces the potential risk of a loss to a minuscule percentage. The risk is almost non-existent. The profit margin is very small which forces the trader to perform dozens or hundreds of trades every day.
Entering hundreds of deals every day is almost impossible. To overcome this obstacle, the traders created systems that take over the trading process. Website like 10Best Binary Robots takes over the whole process, including the technical analysis. Do note that this system above works only with binary options.Read More