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Intra-day VS. End-Of-Day Trading


Many people think that to earn better profits by trading you have to spend hours and hours in front of a screen studying graphics, price… and deciding strategies. It is time to dispel this myth, it is not like this. At least, not always.

This is why we must deepen the concept of ‘when’ trading and the difference between these moments. Trading could be intra-day and end-of-day.

Intra-day operations are classified in the short term and they are performed over the past 24 hours. Intraday trader born in the morning and die at evening, leveraging the day’s events and the fluctuations of the immediate market.

This means that the operator opens and closes its operations more times during the day, obtaining a small yield for each action, but at the end of the day, the sum of all these small operations can reach a fair amount of money.

End-of-day transactions take place in the period between the close of the financial markets of New York and the start of the session in Europe. It is the time of the Asian session when there is a long space trading relatively quiet.

Intra-day traders will have to face more psychological pressure than end-of-day traders because the market conditions change rapidly and they will look for quickly developing profit opportunities. This means elevated risk. However, a significant risk corresponds to a high Return on Investment.

Intra-day requires to traders to determine the entry point in the market, take a position in the stock and continuously monitor several screen of data for the entire day so as to exit at the right time to earn profits. There are a lot of intra-day traders that adopted automatic system so they can let their computer do the tedious job.

End-of-day trading allows you to trade according to your schedule. Your day job keeps going as always, you need just to do some ‘homework’ when the market closes. You can trade instead watching TV at evening. Work one hour on a trading plan and look if the signals of the market support your plan.

This type of trading is for people who have no time and energy to invest into intra-day trading. It is a lot easier because you can take time looking at the charts without make decision on the fly.

Intra-day traders will look at their charts filled with heavy clutter so it will be more difficult to concentrate on his positive signals.

The time of entry and exit are mandatory for intra-day traders. He must exit his position in the market in the same day before it closes. Since an end-of-day trader would be into the market only after it closes, he decide whether to exit the trade or continue for the next day too because he can observe how is positions moved during the day trading.

Although, end-of-day trader would just spend one hour placing a set of orders in the market, an intra-day trader would continuously play for the entire market hours with various long and short positions.

It seems that the efficiency is higher on end-of-day trading because who trades with this type of trading can make profits in one hour instead of one entire day, while an intra-day trader puts all his efforts and pressure on earn profit before the market close.

Based on these differences, you can choose if you want to be an end-of-day trader or intra-day one, but if you have no time and a job it is normal to think that end-of-day suits you better. If you want to be a full time trader is it better to prepare yourself psychologically and be ready for the opening of the market.

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