Consider intraday trading in terms of its advantages and disadvantages. We briefly denote each and then consider a little more deeply.
Let's start with the disadvantages:
Short distance trade (directional movement of currencies). Why this flaw is obviously clear. It will be necessary to enter and exit the market several times, since it may not be possible to gain a planned profit in one trade, or you will have to trade with a high level of risk with fewer transactions. In other words, to get 100 pips inside the day, you need to guess 3-10 deals with the entry. And to get the same when trading this week only one.
High risk of stop-loss order triggering (it is within the market noise level). It requires a very accurate determination of the level of the protective order, due to the short distance of the trade itself. In this regard, there is a high probability of triggering with a random noise pulse, which will require subsequent reopening of the transaction at the worst possible levels.
More transactions are needed to get the required number of planned profit points. As mentioned in paragraph 1, there are likely to be several trades due to the small distance between the market and profit levels. For this reason, trading is usually conducted exclusively between support-resistance levels or taking into account the wave theory and fibo, but again between levels.
The presence of a percentage of losing trades every day. Unfortunately, this is a statement of fact. The shorter the trade, the higher the probability of getting a stop. Here mathematical expectation and money management begins to work.
Specificity in choosing a traded instrument. One of the main reasons for the failure in intraday trading is the wrong choice of instrument. Only mini-trend plots should be selected, preferably in the direction of the price movement in the older time interval.
Small trade distance (relative simplicity of entry and exit level). Yes, this is not only a flaw as described above. This makes it possible to accurately determine the size of the movement and market-stop-profit points. Base support-resistance levels at the time interval traded and older in relation to it. If the level is determined correctly, then you will always pick up your few points (and possibly dozens) even on a counter trend.
There is always something to trade (the concept of flat is practically absent). Exactly. All instruments cannot be at rest, there will certainly be at least one on which there will be a volatile movement. The choice of an instrument for intraday trading is an art, however quite feasible. The road will be overpowered by a walker.
There is always a direction for trade. This follows from points 1 and 2. We trade from the level. The price always moves between levels and the speed of movement between levels is always higher.
You can always choose a convenient time. The undoubted advantage of intraday trading is that you can engage in it at any convenient time, which you can choose from the point of view of volatility (it is usually lower at the Asian session). Or, depending on the main job, if trading is a hobby or you are still studying, and the level of income from it does not allow you to live from trading.
A relatively small number of clearly working patterns. An undoubted plus of intrades is the presence of a rather limited number of formations by which it is possible to determine the presence of a trading opportunity. Base - level, input signal - pattern.
As you can see, a drawback can be a virtue, and for many who want to engage in trading in the financial markets, intraday trading is the best solution for making money in the financial markets.