Intraday trading is another name for day trading, which is a short term investment strategy that offers tremendous potential for those that are willing to learn how to learn how it works. It differs from traditional investing practices, and is similar to swing trading.
Swing trading is another short term investment strategy that involves buying and selling stocks and futures during a 2 to 6 day window in most cases. While 2 to 6 days is the normal period that swing trading is practiced in, on some occasions this window can be increased to up to 14 days.
Why are more and more people engaging in intraday trading and swing trading? The answer here is simple, because it offers more opportunities for building wealth than traditional stock investing does. Traditionally speaking investing in stocks was thought of as a long term investment that will enable you to slowly but surely build your wealth.
This is a great approach if you are willing to be patient and have your money tied up in stocks for years at a time. If you aren’t willing to take that approach then short term investment opportunities such as intraday trading and swing trading are options you should consider.
What Is Intraday Trading?
Intraday trading is any type of stock investment that starts and ends in the same day. In many cases lower cost stock such as penny stocks are chosen so that the investor can maximize their return.
The basic premise with intraday trading is simple, pick a stock that you think is going to have a decent gain over the course of the day, buy it, then sell before the close of the day while making a profit. Because stocks typically don’t go up a huge amount in a day it’s wise to invest in lower cost stocks so you can buy enough shares to make a decent return on your money.
What Is Swing Trading?
Swing trading is another short term investment strategy you should consider if you are looking to make money quickly. Unlike intraday trading, swing trading is not conducted in a single day. Instead swing trading involves investing in, then selling stock or securities over the course of 2 to 6 days in most cases.
However financial transaction are still categorized as swing trading if they surpass the typical 6 day window and continue up to 2 weeks. Swing trading is another short term investment strategy that is meant to allow investors to get a good return on their money quickly.
What Differentiates Short Term Investment Strategies From Long Term Investment Strategies?
If you are curious about why some investors prefer short term investments over long term investments then you aren’t alone. The simplest explanation is that short term investments such as swing trading or intraday trading offers investors an opportunity to make money much more quickly than a traditional investment would offer.
Swing trading strategies and intraday trading strategies differ in that investors are looking for stocks that are likely to experience quick short term growth. That means that the stocks that these types of investors are looking at typically have two things in common.
First, they are usually lower cost stocks since a lower priced stock allows investors the ability to buy more shares. This is important because even modest gains in the value of a stock can provide a significant payoff if you own enough shares. The other thing that most short term investors look for in stocks is the likelihood that the stock will increase in price quickly.
This normally happens with stocks that aren’t as stable as the types of stocks that long term investors look for. While this does make this type of investment more risky that risk is necessary if you want to be able to make the type of return that makes this type of short term investment worth it.
The Key To Succeeding With Intraday Trading And Swing Trading Is Information
The key to succeeding in any type of investing is to have as much information as possible about the market in general, and the stock you are thinking of putting your money into. With traditional investing you can spend a good deal of time investigating and learning about a company before you decide to invest your money. But with short term investing you don’t have the luxury of time.
You need to be able to identify stocks that are primed to go up in value, and you need to be able to recognize the quickly. If you fail to recognize the opportunities presented to you quickly then you are likely going to end up losing out on money you should have made. So swing trading strategies and intraday trading strategies revolve around being able to make decisions quickly to take advantage of opportunities when they arise.
While moving quickly is essential in short term investing you must remember that this doesn’t mean you should act recklessly. Is there more inherent risk in investing short term in less stable stocks? Yes there is, but that higher level of risk doesn’t mean that you should act without careful thought. If you analyze the market and learn about trends and about stocks that appear on the verge of rising quickly, you can minimize your risk.
The problem here is that the amount of information that it takes to be able to make intelligent choices when buying stock is massive. It’s so massive in fact that there really is no way that a single person can ever hope to grasp all of it. In fact an entire team of financial professionals would have a hard time processing and utilizing this information.
Arbitrage Is A Tool That Can Do The Heavy Lifting For You
So what can you do besides hope that you are able to grasp enough of the financial data at your disposal to make good investment choices? You can turn to software for help. Modern technology allows a single person to be able to make the type of analysis and investment choices that once took entire teams to do. That means that it places you on more even footing with the power players in the financial world, at least in terms of being able to recognize opportunities and avoid risk.
This is a vitally important aspect of investing since as an individual you probably can’t afford take major hits on your portfolio when a stock ends up losing money instead of gaining money as you had anticipated it would.
Arbitrage can take the normally impossible task of analyzing the massive amount of data on the stock market and make it easy for you. Instead of trying to do the work yourself, you can set up Arbitrage to do it automatically for you. Because Arbitrage offers a range of different indicators that you can set, you can use it to make the kinds of decisions that you would likely have made if you were able to process as much information as it does.
This ability to customize it’s functions makes it a truly unique piece of software that will work for everyone from new investors to seasoned professionals.
How Arbitrage Works
Arbitrage works by using the indicators you set to help you pick out a stock for short term investment. It generates a report for you to look at that shows you which stocks were winners for the day and which ones were losers. It then takes things a step further and offers suggestions to you of stocks that it predicts will be winners for the next day.
While predicting the future is impossible, coming up with likely scenarios is much more doable assuming you have enough data. Arbitrage of course has access to an enormous amount of data which gives it a good chance of making the right suggestions for you. What all of this ultimately comes down to is what type of approach you want to take with your investing strategy.
If you want to put your money into a mutual fund and enjoy a modest return while allowing your money to be tied up for years or decades, then that’s a decision you are free to make. It’s a low risk approach, unfortunately that also means that it is a low reward approach as well. But if you prefer that method like many other people do, then that’s your preference and there’s nothing wrong with it.
If the idea of tying your money up for years at a time in an investment doesn’t appeal to you, then learning about intraday and swing trading strategies should be of interest to you. If you do decide that short term investing is the option you want to pursue, then investing some money into Arbitrage will be money well spent. If you don’t use Arbitrage when making decisions about investing then you may as well throw your money away by buying lottery tickets.
Because without Arbitrage helping to guide you all you are doing is gambling with your money and hoping you make the right choices. If you want to make intelligent choices when investing your money then start by making the choice to use Arbitrage.