Day trading, what are they and best tips

Surely at some point you have heard or read the term intraday, but you do not really know what it is, much less how it can affect your relationships with the equity markets. Well, intraday operations are called those movements in the stock market that take place in the same trading session, that is, on the same day, and they do not need further delays in their resolution. And they require very special characteristics that other investment strategies suffer from.

Not all investors can perform them, if of course, all market values ​​are receptive to these fast and expeditious operations. Not surprisingly, you will have to formalize the purchase order and the sale order on the same day, to meet their demands. Being, as a consequence of this singularity, more speculative investors those most likely to develop them with some regularity.

In the first place, it will be necessary to detect if you are an investor who can promote this kind of agile operations. Only short-termists are those who operate on the same day, with the desire to quickly achieve the highest possible capital gains, even in a few hours they can finalize their movements in the financial markets. In any case, intraday operations are not intended for conservative investor profiles seeking the medium or long term to make their savings profitable.

Recipients of intraday transactions

Its potential beneficiaries are people who have extensive experience in the equity markets, and who are backed by countless operations of these characteristics. His level of experience is very high, and in any case above that presented by other investors. Another of the singularities of these investors is that they frequently carry out their operations, not from their bank branch, or even from the case computer, but taking advantage of the implementation of new technological means (mobiles, tablets, etc.).

They use online contracting systems, and to which another very important mandatory characteristic joins, and that is that they have the real-time stock trading. For this, it will be necessary to contract the services of a bank or financial intermediary that has this service. It will not be very difficult to achieve this, since a good part of the entities offer applications that incorporate this essential feature to carry out intra-day operations, or on the same day. And most importantly, without involving any financial outlay, since it is a free service for customers.

Only from this environment will you be able to operate in any of the stock markets. You do not have to limit yourself exclusively to national variable income, but rather you can cover other geographic areas: European, North American, Asian, etc. You have no limits to import these movements in the investment. Only those that you impose from your profile as a small or medium investor, nothing more.

How should you operate?

These kinds of operations are somewhat special, and require your own identity signs to achieve your goals. The speed to formalize your orders will be an essential element for you to bring the investment to fruition. Not in vain, it will be key that you correctly adjust the purchase and sale prices. If you develop them successfully, you will have a lot to gain from now on. It will even be necessary that you have a lot of cold blood until wait for the price of a security to reach the desired levels.

Patience will be another characteristic that you must contribute to intraday operations, since if the required prices are not met, you will have to give up formalizing the operation. Not surprisingly, investors who trade on the same day do not do so every week, but only when there are opportunities to do business in the equity markets. One of its main maxims is that you have to know how to wait, and as a consequence, the reward will finally come.

As well you must provide a healthy checking account to support operations. You don't have to be a millionaire to become an intraday trader, but if you are backed by powerful savings, then better than better. And in any case, it should be money that you should allocate exclusively for investment, and not for other purposes of your private life. To finally, through your strategies, create a powerful savings bag for the next few years. It will be the clearest signal that you have succeeded in your goals.

Purchase orders, which must be very selective, must apply in the minimum ranges of your quote, while those of sale in the opposite direction, that is, when they reach the maximum of the stock market session. It is perhaps the most complex move in intraday trading, and it cannot always be done correctly. It is precisely in bullish periods when it is more feasible to successfully carry out these movements in the markets.

What goals can you meet?

Investors who engage in this class of intraday operations will not obtain significant profits in each of them, but will generally be around a yield between 2% and 5%. It is usually the difference between the maximum and minimum price during the same trading session. They rarely exceed these margins, and only in very specific situations can more abrupt movements be generated. And therefore with greater possibilities of profitability.

Although the capital gains would be lower than in movements directed to the medium and long term, since they can be repeated during all years, even months, it leads to higher returns in the end, until reaching higher profits than initially expected. But of course, it won't be as easy as you might think, and surely more than one operation will be unsuccessful, and you will even lose a lot of money along the way.

Set minimum goals and be disciplined In the strategies used, it will help you a lot to achieve the objectives you are pursuing as an investor. And of course, if you do not see yourself prepared to carry out these operations on the same day, or you do not have the necessary experience, you better give up the attempt, and stay as a traditional investor. In both cases, the main thing will be to make the savings profitable, even in different ways.

And yes, you will have to be very aware of the evolution of the equity markets throughout the day. For this, you will have to have enough time to dedicate yourself to this activity that is investing in the stock market. Even with better access to available information, both on the stock markets and on the securities that make up their stock indexes.

10 tips for investing

To more successfully channel your aspirations to become an intraday investor, it will not hurt to add any of the lines of actions that will help you achieve your objectives, not without some effort on your part. And that would basically be linked to the following behavior guidelines.

Of course they will not make a billionaire, but they will at least allow you to raise your standard of living from now on. Even pay for that little whim you were looking for a long time: a great trip, a new motorcycle, or what you always longed for and could not satisfy.

1. Before trading in the same trading session, it is highly advisable that experience your investment strategy through a simulator, which probably has your usual bank. And with it you can gain some experience for when you have to face real operations.
2. Focus on the securities that have greater fluctuations in their prices, since they will be the most likely to develop this investment strategy. The higher the volatility, the better it will be for your interests, and the larger profits can go to your checking account, and with some regularity.
3. Stay informed of everything that happens in the equity markets, since it can lead to interesting operations on the stock market, and who knows if some other business opportunity. You should almost behave as if you were an investment professional.
4. Take advantage of the upward trend in financial markets to enter and exit the securities on the same day, with profit margins much more favorable to your interests, and above other certainly adverse scenarios.
5. Try to hire a flat rate to contain the expenses derived from its commissions. And that will surely help you save many euros every year, optimizing even more each of the operations issued.
6. Never try to rush the benefits, since it is about obtaining them, not their percentage. In any case, you should avoid losing a large part of your assets through a loss limit order.
7. Some operations destined for such short periods of time they will need you to change the chip, and develop strategies that will be completely different from those formulated for periods of greater permanence in the stock markets.
8. Do not believe that all operations will go according to your expectations, but the approach that must prevail is that of maintain a positive balance throughout the exercise, and the higher it is, the better for your interests as a saver.
9. Focus better on those values ​​that you know best, since it will be easier for you to take advantage of its performance in the financial markets. And not those who do not know or do not know how they will react to a certain economic scenario.
10. And finally, try to discipline your investment strategy, which not only helps you to make profitable savings, but also to contain losses in the most unfavorable situations for your interests as a small investor.