It is the act of stock trading; selling and buying stocks on the same day. The aim here is to leverage capital and capitalize on marginal movements in price to make profits. A usual day trader may trade several times a day and may choose to hold positions only for a short time. It could be seconds or minutes and never overnight.
Intraday Trading basically connects taking positions in the markets with a clear objective of squaring off that position before the end of trading time in the stock market. The main intention of the day trading is to capitalize on partial movements in price within one trading day. This can be advantageous for traders because there is lowered risk exposure to probable loss coming out of factors that can affect prices of the stocks in the following days.
There are several investment strategies involved in online trading. On the other hand a day trader would look for two factors in a stock: volatility and liquidity. Volatility is an indicator of the daily expected price range; the range in which the trader would like to function while liquidity permits you to take a position or exit at a realistic price. Classifying the type of stocks with a target price would fundamentally depend on the investor’s trading style.