Predictably, “intraday” means “within a day” – therefore, the Intraday Trading System involves the purchase and sale of securities in the same trading day. Simply put, people want to buy low and sell high. It is mostly encountered in stock markets and in the foreign exchange, but it can be found in any marketplace. Given the rapidity of price fluctuations, such traders need to have short-term strategies to gain profit.

intraday trades

Since the risks involved are higher than the ones encountered when investing in regular stock markets, it is crucial to understand the daily volume, the analysis of stock indicators and other such factors that allow you to make safer decisions. Thankfully, people have developed software to help you keep up with all this data; a good example would be Terminal X3, a desktop trading software which offers extensive data and, most importantly, is free of charge.

All day traders should develop a strategy before taking up this activity, maybe even perform on a simulator for practice. However, the good part is that, even though intraday trading is risky, these traders only use risk capital (funds that they afford to lose). When it comes to making profit off of it, there are three main components which you can never overlook: volume, liquidity and volatility.

intraday trading systems

Volume shows how many times the asset has been traded in a determined period of time – if it’s high, that means that prices are about to change drastically, either up or down. Liquidity allows you to carry out trades at stable prices; there are some people who focus on gold or natural gas, for instance. Finally, volatility shows the profit range – and the crypto-currency market is characterized by it.

Having these factors in mind, you just have to combine them with basic knowledge of the market and pick the strategy that suits you best.