Intra Day Trading Systems

Written by Michael Federico
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There was a time when the majority of people who played the stock market believed that the only way to succeed was committing to a long-term investment. They were willing to weather the ups and downs of the Dow, thinking that it would all pay off in the end. Often, long-term trades are the way to make the most money. However, they are often the way to lose everything, as well.

Online trading gave rise to the day trader. Day traders generally make several trades from the time the market opens until the time it closes. They are concerned with short-term trends, and usually have no desire to hang onto stocks or futures contracts for an extended period of time.

Features of Intra Day Trading Systems

Intra day trading systems are, not surprisingly, focused on trends that occur within a single trading day. When using a system such as Inertia or Spartan, a trader will limit his losses, because contracts are never held overnight. This means that he will not get burned by low openings like many swing traders.

Intra day systems capitalize on short-term trends. They get the most out of minor shifts in the market. Many systems have actually been developed to follow indicators that will allow them to anticipate these small changes or pivots. This means that trades will be executed at the optimum time. This feature also allows a person to cut his losses short. He can abandon his position before things turn truly ugly, and he can quickly regroup.


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