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Intra-day trading

Intraday trading as the name implies is a method of trading used to capitalise on very short term movements in price, both long and short. Invariably, traders are not concerned too much about the fundamental characteristics such as economic or political events, the profitability of a firm or its price/earnings ratio. Having said that, there are a number of traders that will trade on news surrounding many of these factors, although it is normally a less predictable and less exact method of trading.

A growing number of traders will use technical analysis or charting, to pinpoint specific levels to enter and exit trades. There are literally hundreds of different technical indicators to use and probably as many different trading systems to go with them, so choosing how to trade and on what basis becomes the real crux of the matter.

Below are some examples of charts we are currently using as a preferred methods of analysis.

Tradesearcher Chart 1

Candlestick analysis provides a useful way of obtaining a visual snapshot very quickly of what is and has happened in a given time frame....it also provides an emotional snapshot by seeing in one candle, just how the price has moved.

Using the candlesticks and interpreting a sequence of candles can quickly add support (or not) to your trade analysis either on their own, or in conjunction with other indicators.

Developed using complex algorithms, the fractals provide additional support and resistance levels to give us target and entry levels. The chart below shows a brief example of how we use refine our entry points. In this example, UK equity Vodafone was traded as an end of day trade but we use the same principles to trade intraday.

What is vital to our trade decision making however, are the trade management systems we use. Trading, using technical indicators is fine, but unless you know how to trade ie, manage the complete trade cycle, they are far less effective.. Many have found out the hard way that is the case. We show you how to run a trade, not just get in it.

The example below shows how we use the indicators to help make the three key decisions, what is the entry price, what is the target, and what is the stop.

Tradesearcher Chart 2

At Equitrade, we use these as well as tried and tested technical indicators in conjunction with more complex money management trading models, to get the very most out of our short term trading. Our primary aim in entering a trade is to clearly identify at the outset what our expectations are in terms of risk, target levels and duration. If we enter a trade, it is our job to know why, what our target is, and how long we expect to keep the trade for. Answering these basic questions makes the process of deciding how much to trade and in what size, so much easier. We try to eliminate as much uncertainty in our trades as possible and try to make sure our clients do the same.

Some traders (such as our level2 dealing experts here) will use other less well know methods of looking for intraday trading opportunities. Reading momentum and money flow in order book driven stocks can be equally as rewarding as other more mainstream approaches. Here the skill and experience of the trader is the real factor and being able to act quickly to short term moves is vital in using this style efficiently. Combined with pre-determined daily support and resistance levels, it can prove a useful addition to any short term trading strategy.

The costs

Intraday trading relies on a number of factors, most obviously the skill of the trader and the systems used (as above). But an equally important consideration is the cost.

At Equitrade our main focus is to make sure when you trade with us, you stay with us, and to do that, you have to be successful. To help you achieve more success we offer an intraday trading package that keeps your costs to the minimum, whilst still providing you with all the support and know how we can. The two combined, we think are a winning formula.

If you are interested in the intraday trading package, please complete the brief form below and you will receive an immediate quote*. Alternatively please call one of our traders, and they will gladly give you more information.


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Remember that CFDs are a leveraged product and can result in losses that exceed your initial deposit. Trading CFDs may not be suitable for everyone, so p

lease ensure that you fully understand the risks involved.

The information on this site is not directed at residents of the United States or any particular country outside the UK and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

Equitrade Capital Ltd | 257 Hagley Road, Birmingham. B16 9NA | +44 121 454 0770

Risk Warning: Trading Contracts for Differences (CFDs), Futures and spread betting carries a high level of risk to your capital, and is not suitable for all investors. Only speculate with money you can afford to lose. Trading or placing any bets can result in consumers incurring liabilities in excess of their initial stake. Please ensure you fully understand the risks, and seek independent advice if necessary. Equitrade Capital Ltd is an Appointed Representative of Equitrade Markets Ltd, a company authorised by the FSA to provide advice on spread betting, CFDs, futures. options and rolling spot foreign exchange.