what is intraday trading

What is intraday trading:

Day trading means buying and selling financial instruments within a day is called intraday trading.
Strictly, day trading is within a day. Participants.

Characteristic of intraday trading :

Day traders use an intraday techniques know as scalping that usually has the trader holding a position for few hours or even minutes. 

Most day traders exit positions before the market closes to avoid unmanageable risk negative price gaps between one day's and next day's price at open. Another reason is to maximize day trading buying power. Other trader believe they should let the profits run, so it is acceptable to stay with a position after the market closes 

Profit and Risk:

Because of the nature of financial leverage and the the rapid returns that are possible, day trading results can range from extremely profitable to extremely unprofitable , and high risk profit traders can generate either huge percentage return or huge percentage losses. Because of the high profit or losses that day trading makes possible, these traders are sometimes portrayed as "bandits"or "gamblers"by other investors.

Day trading is risky, especially if any of the following is present while trading:

• Trading a losers game rather than a game that's at least winnable,
• Inadequate risk capital with the accompanying excess stress of having to survive 

The common use of buying on margin amplifies gain and losses, such that substantial losses or gains can occur in very short period of time. In addition,brockers usually allows bigger margin for day traders 

This is beginning of intraday trading. In next blog we will discuss various techniques of intraday trading .