That means in intra day trading the investors buy and sells shares or commodities and clears their positions on daily basis. At the end of the day the investors calculate their profit or loss.
The intra day trading some times proves very dangerous as the prices change very rapidly. Therefore the investors who prefer intra day trading must pay more attention during trading of shares. Here are some important tips for intra day trading investors.
Observation of Trend: The investor must watch attentively the trend of stocks or commodities. If prices of shares are showing continuous rising trend, they must invest in these stocks or commodities and if the prices are falling they must prefer short sale of that that stocks or commodities.
Determination of Support and Resistance Level: This type strategy is used for making reasonable profit. In this type, the investors must calculate the support level and resistance level of the stocks. At support level they should purchase and at resistance level they must sell their stocks or commodities.
Constrain Strategy: This type of strategy relates with the time. In this type the investors must know that the prices of rising stock may fall in the future and they will buy that stock at dips.