What is Day trading?
Day trading is simply purchase & sale of stocks within a similar day .Day traders through this strategy earns large chunks of profits by putting in large ratio of capital to enjoy smaller price moves in a highly liquid index or forex.
Day trading is simply trading the stocks within same day through buying them and then re-selling at a higher price to earn revenue.
Day trading could be a risky game to play with especially for the new comers or for those who are not experienced in the tactics behind.
Day Trading Strategies
Some of the day trading strategies commonly used by the day traders is:
Scalping is one of the most accepted strategies that include selling of stocks immediately after a trade goes profitable. The price target is only once after attaining profit.
Fading: includes shorting or stocking of stocks after rapid upward fluctuations. This strategy happens in case of two possibilities:
1. if the stock is over bought
2. new buyers are willing to take profits
3. existing buyers might get scared
The approach is risky but can be rewarding at the same time
Daily Pivots: This approach revolves around gaining profit from a stock’s routine volatility & includes buying the stock at the beginning of the day & selling them at the end.
Momentum: trading done on the basis of news releases or searching for ongoing strong trends and moves backed by high volumes is called Momentum.