What is the intraday meaning definition? For those of you who don’t know, “intra” is a prefix meaning within. Hence, intraday means within the day. As far as stock trading is concerned, this means you’re buying and selling stocks within the same trading day. This is often done by day traders.
With intraday trading, the goal is not to invest. The goal is to profit off quick movements in stock prices each day. And profit people do. So much in fact, millions of traders are lured into trading with the promise of lucrative returns.
But, the fact is, you need to know what to look for if you ever want to reap those returns. So keep your eyes glued, and I’ll show you want to look for, so those returns end up in your pocket.
The most commonly traded securities are stocks and exchange-traded funds (ETFs). Because trades are opened and closed within the same day, you must pick the right stocks.
Besides, you’re only as good as the stocks you trade. Despite having the best trading strategies in the world, if your stocks don’t move or have low volume, you’re not going to be making money consistently.
Or, you could be just starting out and completely overwhelmed at the thousands of stocks available to trade. Luckily, picking the right stocks is easy if you follow the tips below.
In other words, high liquidity stocks. Even if a stock is at a rock bottom price and you think it’s a steal of a deal, be careful; if something seems too good to be true, it probably is.
You need to make sure you pick a high liquidity stock. If there are no buyers for your stock, you might be stuck holding onto something no one wants and, you might face a loss. Read our post on how to avoid the pump and dump trap. It doesn’t matter if you know the intraday meaning if you fall for the pump and dump.
Do you know what happens when the volume isn’t there? The answer is slippage, slippage happens.
If the volume isn’t there, you’ll end up with a very wide bid-ask spread. Needless to say, it means getting the best price is next to impossible.
To emphasize it could mean paying 5% to 15% extra just for the illiquidity. For these reasons, whether it is ETFs or stocks, you must pay attention to the volume.
Sometimes sectors have high volume which grabs the attention of traders. However, just because a sector like marijuana is ripping doesn’t mean all potstocks are running.
Displayed as a ratio, RVOL compares the current volume to normal volume for the same time of day. For example, a stock trading ten times its normal volume would have a relative volume of ten.
As intraday traders, we want the RVOL at two or higher coupled with a positive catalyst – think news, positive drug trial, etc.
Generally speaking, almost every winning intraday trade is high in relative volume that day compared to its average volume.
Remember the trend is your friend. So trend trading strategies are incredibly helpful.
Float, by definition, is the number of shares available to trade on the open market. When it comes to momentum trading, the lower the float, the better.
It’s these low float stocks that will move and move quickly due to their low liquidity. However, I must warn you; The lower the float, the more potential it has to do something nuts. For these reasons, stick with a float greater than 300,000.
Luckily with Bullish Bears, we trade a variety of different strategies, and we can help you pick the one that’s right for you. In fact, we talk about them all in our live trade room.
Undoubtedly, it requires dedication, hard work, patience, quick wit, and the desire to learn if you want success in intraday trading.
To a large extent, successful day trading involves 10% execution and 90% patience. If you want to gain expertise in day trading, hone your trading skills and keep money in your pocket, sign up with Bullish Bears now.