Pros And Cons Of Intraday Trading

Some beginning traders often start out as intraday traders to ultimately end up position, or vice versa. Everyone should try both ways of doing business. Let us summarize the basic pros and cons of intraday trading method:

+ Every day starting “with a clean sheet”
+ Mostly lower commission (even under 5 USD RT)
+ Lower margins (up to 75% smaller than the positional trading)
+ A chance to earn hundreds of dollars literally in minutes
+ Trader does not hold a position overnight
+ In intraday trading, there can often be less risk than in the case of positional trading – sometimes only tens of dollars
– Limited potential profits (every transaction ends with the end of the trading day)
– Time consuming
– Can be carried out almost exclusively through on-line trading
– Intraday real-time data and graphs are usually not available for free
– Almost no time to think about transactions, it is often necessary to act in a matter of seconds

– From the moment of opening market, traders had to be continually tied to monitor and track every movement of the market for intraday charts, practically anywhere without a rebound
– For continuous intraday data, it is likely to have to pay a monthly fee
– The trader bought and sold through an online platform
– Seller paid the commission probably between 5-10 USD

Of course, nobody will prohibit trading as positional and intraday. However, if you decide to trade both ways, we strongly recommend that you open for every kind of separate trading account – positional trades need high quality full-service broker and intraday trading needs Brokerage Company that offers reliable, fast and easy-to-use online trading platform with the lowest commissions.

Intraday trading is for many a very time-consuming, but occasionally offers very fast profits. Position trading is very time saving and it just gives us a maximum of 1 hour per day, but we have to put up with the necessary dose of patience needed to wait long for the correct formation.