As a fast-forward and fast-out trading method, intraday trading has obvious advantages and disadvantages. A detailed understanding of its advantages and disadvantages will help traders make better judgments and choices.
The advantage of intraday trading is 1, and the risk is easy to control-intraday trading sounds risky, but its advantage is that the risk is easier to control in the hands of traders.
When traders find that the market situation is unfavorable to them, they can leave quickly. At the same time, there are a lot of unexpected news that will cause the market to fluctuate violently. These news occur at night or during the light trading hours. Trading in the day, without holding positions overnight, can pay attention to the market at any time during the trading process, which can effectively avoid being forced to stop loss or explode positions because of the big market.
2. Feedback the results in time
Intra-day trading means entering the market on the same day and leaving the market on the same day, and the trading results will be fed back soon. For medium and long-term band trading, it may take days, weeks or months to make a profit, but intraday trading may have results in a few minutes. For some anxious traders who want to know quickly whether their strategies are effective, intraday trading is more in line with their expectations.
3, quick profit, meet the psychological pursuit of excitement.
Intra-day trading is very fast, and you can do several or even a dozen transactions a day. It is very satisfying to watch the money in your account rise rapidly when trading, but it may also fall rapidly. The higher trading frequency of intraday trading is more exciting than other trading methods, and some traders will be willing to pursue this kind of stimulation.
The disadvantage of day trading is that the profit ratio is small.
High transaction cost
Time-consuming and labor-intensive
The central idea and principle of day trading is not to be greedy in short-term trading, to set a reasonable profit margin for yourself, to get out immediately after reaching the goal, and then to re-evaluate the market and wait patiently for the next trading opportunity given by the market.
Second, respect the market and conform to the market. Day short-term traders can't predict the market, but can accept the market and integrate into it. Traders should always remain humble in front of the market. In front of the market, the individual is always insignificant.
Again, choose trading opportunities that are in line with your own trading principles and that you are familiar with, and don't fight uncertain battles. If you don't make a move, you win. Because of the thin profit, it is particularly important to win by selling success rate in intraday short-term trading.