Intraday Trading – What You Need to Know

by Lonnie Hackbarth

If you are thinking about becoming an intraday trader, you should understand that this profession requires fast decision making skills. You have to know how to move quickly if you want to make rather than lose your money.

You must know how to analyze technical reports and graphs, manage your money and handle psychological issues associated with intraday trading. If you have natural ability, then learning what you need to know will not take you long at all.

Technical Analysis and Intraday Trading

There are rises and falls in stock value throughout the day. Day traders get accustomed to buying and selling a stock within minutes. The technical reports show intraday traders how a particular stock has been behaving. They learn how to read the charts and apply the information to their investments. Whether learned from a book or a class, the ability to analyze the charts is necessary for every intraday trader.

Intraday Trading and Managing Your Money

The best intraday traders always know where they have put their money and how much of it is free for trading. They can also recognize a good risk from a bad one. People who are good with money management set guidelines for trading and do not deviate from their own set of rules. Do not get involved with intraday trading if you are not skilled or willing to take a course in money management.

Psychology and Intraday Trading

Psychology comes into play when you develop good intuitive skills. Knowing which stocks to invest in and when to trade them off is not only about chart analysis. Experience in analysis helps intraday traders develop intuition in this area. Another factor in intraday trading is that it is a high-stress profession. If you cannot handle stressful situations with a good deal of patience then you need to learn how to do so or you will end up burning out rather quickly. Successful traders can keep a clear mind while they make intuitive decisions.

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