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® “Home-Study Course” Study Manual Page 219

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Trades last from a few to many days depending on market
conditions. News events have an impact on them.

4. Intraday Scalpers:

Primarily use direct access firms. Only in trades for minutes, up
to 30 minutes depending on market conditions. “Scalpers” use
one to five minute charts. Some that trade stocks use NASDAQ
Level II as well. “Scalpers” incur a high number of trades each
day, and rarely keep a trade overnight. Classic day traders in the
sense that they like to go home flat with no positions at the end of
the trading day. Typically blamed for the intraday noise and
volatility in the markets.

The strongest trends occur when long term traders get involved at the
same time as position traders in either buying or selling a position. This
ideal scenario results in strong trends pulling momentum and position
traders further adding to the strength of the trend. Short term players
usually don’t remain in a market. They get out at the first sign of
weakness in a trend. This causes a trend to correct. During these
corrections, longer term players who view the correction as an
opportunity to either get out of a bad position or buy into a good
position, push the trend in its dominant direction. The interaction of
players is what causes markets to move up and down.

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