During one trading day, a trader needs to use a large number of instruments for intraday trading in order to get the highest possible income. The very concept of intraday trading implies opening a position in order to fix profit or loss in a few minutes or a few hours.
Carrying over the trade to the next day is no longer part of this strategy. Therefore, for quick and correct decisions, a trader needs to use several tools for trading on the stock exchange in order to make his work easier.
What factors need to be considered for effective intraday trading?
You can trade anything on global markets – stocks, bonds, Forex, commodities, futures and options are available to bidders. However, to use an intraday trading strategy, you need to focus on only a few of these trading tools.
The main characteristics of such financial instruments, which are used in strategies for intraday trading, include high liquidity. Paired with high volatility, it allows you to instantly realize an asset and earn on market fluctuations in short periods of time. Also, the importance of low transaction fees and leverage that allows you to get the maximum profit with the minimum capital cannot be ruled out.
Software and other supporting applications
The workspace of a trader must necessarily have all the necessary functions, including technical indicators for stocks and other assets. There are separate sites and programs that host ready-made algorithms for tracking and processing market data. These include:
- Trade Ideas is an artificial intelligence platform that processes stock data and provides ready-made trading signals;
- TraderView is an integral part of the main trading tools of a trader, which is available both for a fee and for free. On this site, you can track different charts, assets and use the solutions of other traders;
- Benzinga Pro is a program that provides analytical materials and stock market insider information;
- EquityFeed is another intraday trading tool that scans stocks and notifies the user of a find. Here you can customize the functions for yourself and connect to the list of online brokers.
There are many varieties of instruments in trading, and it is not at all necessary for a trader to use them all. Before selecting the main functions, it is necessary to set a clear goal and decide on the most suitable asset.
