This method aims to profit from price movement during trading hours, completing all buying and selling between the market open and the market close.
Features
Because a position is not carried over to the next day, it tends to avoid the price-swing risk that can arise from overnight or after-hours news, such as overseas market moves or earnings announcements. On the other hand, it requires continuously watching price movement throughout trading hours.
Benefits and points to keep in mind
Because trades are completed over a short period, the number of trades tends to increase, which can add up in transaction costs such as commissions. It also calls for frequent decisions about price movement, requiring a corresponding level of knowledge, experience, and available time. Compared with other investment styles such as swing trading or long-term investing, neither approach is inherently superior — each has its own characteristics and points to keep in mind.