Intraday Calls are buy-and-sell recommendations based on technical and derivative data that have a one-day expiration. They should only be executed when the underlying price remains within the recommended range. For example, a buy intraday call would be made on a stock with a breakout above its resistance levels, a bullish momentum on the daily MACD Histogram, a double bottom breakout, and a smart uptick in volumes.
Intraday calls are especially effective in volatile markets, which make them a good choice for traders with high risk appetites. Because they are executed within a single trading day, intraday calls can help traders realise gains sooner, while minimizing their losses. To be successful, intraday call traders must have a high appetite for risk and a sufficient amount of time to track the market closely.
Before investing in intraday calls, you should thoroughly research the stock you want to trade. Technical analysis can help you make better trading decisions, and other factors, such as mergers and acquisitions, stock splits, and dividend payments, can help you understand the strength of the current trend. It is also helpful to learn about momentum trading, which helps you identify trend strength.
Intraday traders should learn about trends and use charts and patterns to make their decisions. Intraday traders are also interested in news and are quick to trade on the news. They want to take advantage of news releases.