What are intraday operations?

intraday operations

With all certainty that on more than one occasion you have read in the media something about intraday operations. Well, it will be convenient for you to know it correctly because from now on you will be able to get a lot of benefit from its operations. It is about the operations that are done on the same day within equity markets. Not only derived from the stock market, but from other financial assets of various kinds: currencies, precious metals or others of an alternative nature.

A fundamental requirement for them to be considered in this way is that they have to be generated in the same trading session, and not in several. So that buy and sell orders are filled within a few hours of each other. The objective to complete them is to obtain capital gains in the shortest period of time. The shorter it is, the better it will be for your interests as a small or medium investor. Not surprisingly, it will be the strongest sign that you have achieved your goals.

This is an equity order that is often used by investors with more experience in the markets, and who know the formulas to profit quickly. They are not interested in delaying their movements, much less taking them to the medium or long term. Not even that they last a few days or weeks. They want to make cash as soon as possible, and start over with this strategy through other values ​​that meet this characteristic.

Suitable for speculative operations

Characteristics of intraday operations

It goes without saying that it is the most speculative investors who feel most comfortable with these operations so fast in their duration. They enter and leave the financial markets with great ease, perhaps more than you can house right now. And only a failure to meet their goals will delay their sales by a couple of days, and even longer if things get ugly for them.

You should know that you will not get really spectacular returns, but at least it will help you to increase the balance of your checking account. And periodically, which is what this kind of special operations have been created for. Normally several are formalized a year, and that in the case of the most aggressive investors are limited to weeks, or even months.

Flat rates to operate

One of the biggest drawbacks to applying intraday operations is that they will generate many expenses every month due to their commissions and expenses in their management. Anyway, you can avoid this problem How? Well, in a very simple way, through the flat rates that credit institutions have designed to promote this kind of operations on the stock market. Through them you will save a lot of money all the exercises, and of course more than you initially imagine.

Flat rates consist of paying a fixed and monthly fee that allows you to carry out all operations, without major monetary disbursements. They reward investors who open positions in the markets more frequently. On the other hand, if there are few that you formalize, it will not be worth it, since you will be paying more in your investments in any kind of financial markets.

You will no longer have to worry about their commissions, since you will have complete freedom to develop as many operations as you want, without any limit in terms of their number. Most banks have a rate of these characteristics, which you can take advantage of if you are one of these investors who open positions in the markets with some ease. Perhaps it could be your specific case.

What is the OBJETIVE?

How to operate?

Intraday operations, or carried out on the same day, allows you to close operations as soon as the benefits appear on your investments. The more money you invest, the better your chances of improving profit margins.. Although with the obvious risk that things do not go as you wanted. Even to sell them at a loss, so that the falls are not exacerbated and you can significantly reduce your personal assets.

These are operations in which it is a matter of maintaining positions for the shortest possible time, although yes, with capital gains, no matter how few they were. As soon as prices increase, sales appear emphatically, without waiting for additional revaluations. Tomorrow does not count, only the present. This is how investors who opt for this class of operations called intraday act.

To develop them, charts are used frequently, and looking mainly at the supports and resistances that share prices present. It is a very useful tool to keep in touch with the movements coming from the equity markets. While fundamental analysis is not too sensitive to these strategies.

More sensitive values

How to trade intraday?

There is no doubt that there are a series of stocks that are much more favorable to operate in such short terms. They are those that present great volatility in their prices. And if possible, they have a wide difference between their maximum and minimum prices. To the point of generating gaps in its price that it can approach up to 5% levels. In this sense, small caps are the most favorable for these cases.

On the contrary, the most stable ones, with hardly any differences in their prices, are more difficult to channel these movements by investors. It is not strange, then, that the smaller companies are the preferred ones to take positions in this kind of operations. And especially in national markets over international ones. Not surprisingly, their commissions are much more affordable. And in addition, they have the clear advantage that they are easier to follow to open positions at any time.

Intraday strategies

One of the keys to investing in these short terms is to adjust purchase prices as much as possible. You have to do it when they are at the low base of their quotes. The purpose is none other than have a greater upward journey and they can optimize the investment in a more satisfactory way for your interests. It is also desirable to speed up sales levels, for the same reason. This is one of the good bases to shape the investment strategy in intraday operations.

You should not be in an excessive rush to enter the financial markets, but it is advisable to take advantage of the business opportunities that arise. With all certainty that they will appear at some point, and maybe even in a very clear way, and even profitable to earn a few euros in each of the operations. You will only have to wait for them to appear, nothing more. And of course, knowing how to operate under these very special conditions.

From this scenario, one of the requirements that you will have no choice but to comply with is to be willing to do an exhaustive monitoring of equities. You must be very aware of the quotes, and any news that is generated from the markets. Not surprisingly, speed is the common denominator of all your performances. And interpret the movements of the stock markets. If you want to trade on the same day, you will have no choice but to do so. And if possible in the most effective way.

Some tips for trading

If your desire is to get involved in these very special operations, you should import a series of characteristics that will help you cover the objectives with less difficulty. And with which you can make your savings profitable from now on. However, you will be very cautious in your actions since any mistake can spoil the strategies used. And as a consequence, losing a very important part of the invested capital.

Once you are in a position to act under this scenario through intraday operations, it will be time to follow closely. a series of tips that will be of great use to you to channel investments. And that basically come from the following actions that we express below.

  • Do not see yourself in the obligation to invest on the same day, but as a consequence that opportunities appear. You just have to be prepared to act, and protecting your savings to the maximum.
  • It will be very important that adjust the purchase price, because the success of your equities operations will largely depend on this operation. And that you can close your movements with greater guarantees.
  • Don't focus on all equities, but only in a few, that are those that meet the characteristics to be the object of your attention in movements as fast as these.
  • You do not have to dedicate all the savings to these operations, but on the contrary it will be a not very large part of your savings bag. It will be a strategy that will help you protect your interests.
  • Take advantage of the days when volatility is much higher, and it is easier to develop these movements in financial markets. It will not be every day, but a few a year.
  • If you are not sure of your intentions, you better give up the investment and dedicate yourself to other less risky strategies, or at least that they have greater protection mechanisms.
  • You should be aware of everything that happens in the equity markets. Not only with its evolution, but also with the news surrounding listed companies.
  • And finally, if you are a more conservative investor, you must admit that these intraday operations are not the most suitable for your profile. And you will have no choice but to change your investment strategy.

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