Why do people call intraday trading risky? and let me know the most successful time periods for intraday trading which are proved to be successful
Equity Segment: 9:15 am to 3:15 pm.
- Currency Futures & Options (USDINR, EURINR, GBPINR, JPYINR), T-bills Futures & Interest Rate Futures: 5:00 p.m.
- Cross Currency Futures And Options (EURUSD, GBPUSD & USDJPY): 7:30 p.m.
Commodity Segment: Trading time for Precious Metal, Base Metal, and Energy Commodities is 9.00 am to 11.30 pm.
For Agri commodities, the timing is 10.00 am to 5.00 pm.
Its risky for some reasons which might not be totally obvious -
- TA on intra-day time-frames is less reliable
- price spikes are more common in very short time-frames
- planning and decision-making time is limited
- volatility and small positions encourage traders to not use stop-losses
- its harder to let winners run
- short holding periods encourage over-trading and revenge trading
- spreads are wider and more variable as a percentage of profit potential
- breaking even by every day’s end becomes a target, again encouraging over-trading and revenge trading
- emotions are near the surface in very short-term trading.
Define “risky”. No method of trading is inherently more “risky” than others. RISK IS A FUNCTION OF THE TRADER, NOT THE MARKET. And, it primarily boils down to position sizing and being educated about the product you are trading. It’s honestly as simple as that.
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I support this.
A whole lot of people just go with the motion that intraday is risky but trading forex is risky entirely.
It’s entirely up to your strategy and proper risk management to make it in forex…not necessarily the type of trader u are.