IntraDay Trading

Intra Day trading offers the most exciting opportunities and also risks with it. In my discussion with traders I came across lot of misconceptions. This is an attempt to clarify some of those.

1. Intraday time frame players are generally large speculators and moves are deceptive. As Victor notes in DailySpec " In Intraday price inevitably tend to go to the traders point of ruin".
2. Trader keeps his trading position when it goes against him for the next day. Trader rationalises and moves his stop further increasing his stop loss.
3. Anecdotal evidence of some stocks returning after 1 or 2 days to his buying price. This may be selective memory and market teaching you the wrong principles of speculation.
4. Inability to distinguish between Investing, Speculation & Gambling.
5. Entering into the arena of Gambling unknowingly aiming to speculate.
6. Having a fixed bias overriding price action.
7. Assuming ability to interpret news as positive or negative to stockprices instead of companies.

These are some of my observations in discussions with short term traders.