1. Introduction to Stock Trader Types
  2. Stock Traders’ vs. Stock Investors' Roles in the Marketplace
  3. Decision-Making Methods: Informed, Uninformed, Intuitive
  4. Informed Traders: Fundamental Traders, Technical Traders
  5. Swing Traders
  6. Buy and Hold Traders
  7. Value Traders
  8. Trend Traders
  9. KISS Traders
  10. Momentum Traders
  11. Range-bound Traders - Break-out Traders - Channel Traders
  12. Options Traders
  13. Options Seller Traders
  14. Day Traders
  15. Pattern Day Traders
  16. Intra-Day Traders
  17. Intra-Day Scalp Traders
  18. Contrarian Traders
  19. Active and Passive Traders
  20. Futures Traders
  21. Forex Traders
  22. Online Stock Traders
  23. Pivot Traders
  24. News Traders
  25. Noise Traders
  26. Sentiment-Oriented Technical Traders
  27. Intuitive Traders
  28. Price Action Traders
  29. Price Traders
  30. Detrimental Traders
  31. Unsuccessful Types of Stock Traders
  32. Conclusion

An intra-day trader is a particular type of stock trader. This trader both opens and closes a new position in a stock in the same trading day. There are many reasons why a trader may do this: they could capitalize on a short-term rise in a security’s value, or short the security to capitalize on a drop in value. They also utilize leverage in order to amplify their returns, although this also increases their risk levels.

Intra-day traders operate with some of the highest levels of risk in the entire broader market. They participate in market conditions which change incredibly rapidly, and they capitalize on these quick shifts in order to try to develop opportunities for profit. They usually use technical analysis to determine when conditions are the best to either buy or sell. Of course, with higher risk comes increased potential for high return on investment, too.

In order to stay on top of the latest trading activities, intra-day traders are almost always full-time, professional traders. They continuously monitor multiple screens of data in an effort to track down the best market conditions and the ideal times for entering and exiting trades.

Common Guidelines for Intra-Day Traders

Many intra-day traders utilize automated systems and pre-determined rules in order to figure out when to enter trades. They usually analyze specific price-volatility patterns as well as the previous day’s price action. Here are some of the rules commonly employed by intra-day traders:

1. Invest what you can afford to lose

Intra-day trading is high-risk trading, and an entire investment can be wiped out in the span of minutes.

2. Choose highly-liquid shares

Liquidity is key, as intra-day traders must sell off their positions at the end of the day.

3. Trade only in two or three scrips at a time

Minimizing activity helps the trader to monitor stock movements more closely

4. Research watch lists

An intra-day trader’s watch list is a crucial tool.

5. Fix entry price and target levels

Intra-day traders usually set themselves fixed entry and target levels, recognizing that they may otherwise be beholden to emotional reactions.

6. Use stop losses to contain impact

Stop losses help a trader to limit losses in case the price of a share moves unexpectedly.

7. Book profits when targets are met

Intra-day traders usually sell when they’ve met their profit goals, even if there’s a chance they could earn more.

8. Don’t fight the markets

Even the best modes of analysis are not able to predict the way the market will move.

Risk

Although risk levels are high for intra-day traders, the fact that they sell off their positions by the end of the day means that there is some limitation to the risk they take on. Each day is a new experience, and they don’t have to worry about what happens overnight and which may impact a long-term holding.


Intra-Day Scalp Traders
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