Intraday trading is further divided into:
Standard intraday trading
A trader holds transactions for several hours within one trading day. In intraday trading, the strategy tries to capture transactions that have a probable potential to move approximately 1/2 of the average daily range. However, this is not dogma. Some intraday traders try to capture transactions that will yield at least 10 pips and exit the position when that is reached. It can be said that one to a maximum of two trading signals will be generated on a single instrument within a trading day. However, there are also days when no signal is generated.
In this method of trading, the trader holds transactions for a few seconds or minutes. Also, the distances to profit are very small, sometimes up to 5 pips. It is typical for scalping strategies to have a negative risk/reward ratio, meaning that average gains tend to be lower than average losses. This means that in order to be profitable, a trader must achieve higher probability trades.
In scalping, multiple trading signals may occur per day. Thus, some traders will make around 10 or more trades in a single trading day. However, it must be remembered that scalping is not about impulsively clicking into the platform depending on every candle movement.
In general, when trading, it is only necessary to enter trades when a signal arises according to the trading plan. It is necessary to be absolutely precise about what the trading signal will look like, when to enter the transaction, where to put a stop loss and where to take profit, and at what times to trade.
All of this must be set up so that it is likely that within one day or a set trading time, the trade will make a profit. Unfortunately, in intraday trading and scalping in particular, this is very difficult to follow due to psychological contexts. More on this in the section on the disadvantages of day trading.