Intraday trading style... What you should know

Intraday trading, as the name suggests, means trading within one trading session. Traders who use this style place trades that start and end within a day, typically before the market closes. The main purpose of this type of investing is to take advantage of short-term fluctuations in the price of assets. Unlike long-term investors who seek profits by holding assets for the long term, intraday traders seek to make money from small but frequent changes in market value.

The intraday trading style is mainly based on technical analysis. Various analytical tools are used here, such as technical indicators, candlestick charts, support and resistance levels, as well as strategies based on volume analysis and price movement. Intraday traders rely on speed, precision and the ability to react to changing market conditions, which makes this style of investing quite demanding.

Intraday trading can be used in various markets, such as the stock market, forex, cryptocurrencies, or futures. With access to advanced trading platforms, traders can execute trades quickly, allowing them to make the most of market opportunities. In turn, access to liquid markets and a good broker is crucial to successfully carry out trades in short intervals. It is important to learn the most important principles of investing before you start investing, which you will learn from the training conducted by Webinar Universe.

Intraday trading style and its types

Within intraday trading, there are different styles of investing, which differ in techniques, duration of transactions and the type of analysis used by investors.

Breakout trading – breakout trading is based on identifying support and resistance levels and taking advantage of the moments when the price of an asset breaks out of these levels. These types of trades are relatively short-term and are usually based on technical analysis. When the price breaks through an important resistance or support level, it can indicate a potential price movement in that direction. Traders can open positions at this point, hoping for a quick move that will allow them to make a profit in one session.

Basic rules of breakout trading:

• breakout from consolidation – most often, breakout traders look for moments when the price moves in a narrow range (consolidation) for a long time and then breaks this range up or down;
• Signal confirmation – A good breakout must be preceded by sufficient volume, which increases the likelihood of trend continuation. After a support or resistance level is broken, traders often expect a further move towards the breakout.

News trading – news trading is a strategy in which traders react to significant macroeconomic events or financial earnings announcements that can cause high volatility in the market. Typically, traders try to open positions just before or just after the announcement of major news, taking advantage of potential large price movements. This requires excellent knowledge of the calendar of events and the ability to react quickly to changing market conditions.

An important part of news trading is being able to predict how macroeconomic data may affect the markets. In particular, this applies to events such as:

• employment data (e.g., the U.S. NFP report);
• interest rates (central bank decisions);
• inflation data;
• GDP reports;
• employment, industrial production, retail sales;
• political events (e.g. elections, changes in government).

Breakout of resistance or support levels – Similar to breakout trading, traders in this style identify key support and resistance levels, but the difference is that once the level is broken, traders try to hold the position for an extended period of time, hoping for the continuation of the move in the same direction.

Intraday trading style... For whom?

Intraday trading is not suitable for every trader, as it requires specific skills, personality traits, and a lot of time spent monitoring the markets. This style of investing can be ideal for people who, above all, are looking for active investing. Intraday trading is a very dynamic way of investing that requires constant attention and monitoring of the markets. People who are not afraid of quick decisions and high intensity can find themselves in it.

This style also requires making decisions under pressure. Due to the fact that intraday trading is associated with instant decisions, investors must be resistant to stress and react quickly to market changes.

People choosing this style must also be well organized. Conducting effective intraday trading requires proper organization, planning, and discipline. Sticking to established rules and plans is essential to avoid emotional decisions.

You should also have enough time to follow the markets. Intraday trading requires you to monitor the markets regularly throughout the day. Therefore, it is a style of investing suitable only for people who can take the time to keep up with the market situation.

Intraday trading style in practice

In order to successfully invest using intraday trading, traders must follow a few rules. First of all, every intraday trader should use stop-loss orders to limit risks in case of unfavorable price movements. Discipline is also extremely important. Investors must stick to the set rules and plans, avoiding emotional decisions that can lead to losses.

In intraday trading, technical analysis is key. Traders should use a variety of indicators such as RSI, MACD, moving averages to make informed decisions.

You should also not forget about regular education. Financial markets are dynamic, so investors need to stay up to date with the latest developments in technical analysis and investment strategies. Good theoretical and practical preparation is necessary to make profits in intraday trading.

In conclusion, intraday trading is a style of investing that can yield high returns, but it also involves a lot of risk. With the ability to make quick decisions, analyze the markets, and use the right strategies, traders can effectively manage their positions and make profits. However, it is worth remembering that intraday trading requires a lot of knowledge, experience and proper preparation, including choosing the right broker. Using Webinar Universe, traders can find the online training platform that best suits their needs, greatly increasing the chances of success in this challenging style of investing.