What Is Intraday Trading?

What is intraday trading, and why is it different from day trading? In the stock market trading game investors may hold specific companies for various time periods, depending on the performance of the investment. Stock market basics include the fact that the goal is to see an increase in the investment value, and intraday trading does this on a very short term basis. This trading strategy means that stocks are never held overnight, but are always bought and sold during the same day for small short term profits. Some day traders will have overnight holdings, but not with the intraday strategy. Many times the profits seen with this method are small, but they do accumulate over time. Often these short term investors will only make pennies a share, but this is consistent.

Intraday trading means making numerous trades during each day, with every day starting out fresh with no investments. These investors look for price increases of small amounts over the buy price, and then the stocks are sold for a profit. There are a number of different ways to perform intraday trading, and one of these is scalp trading. Prices will fluctuate through the day, and investors take advantage of these movements to earn small but consistent profits by making a number of trades each day, without holding any stocks past the close of the day. Research is still important, even with this type of short term investing, because losses are possible and no investment should be considered foolproof or a sure thing.

The information supplied in this article is not to be considered as medical advice and is for educational purposes only.