| Day trading refers to entering and exiting a trade | | | | Some buyers who purchased the stock early on |
| within the same trading day. Sometimes this can last | | | | when the price was lower may begin to take profits |
| a few seconds, and sometimes it can last a few | | | | at this point. Some buyers who bought too late may |
| hours. Day trading has become quite popular among | | | | begin to get scared off at the notion that the price |
| many people, and online stock brokers are finding | | | | might start to drop. |
| themselves busier with the joining of newbie traders. | | | | Day Trading Strategy #3 - Daily Pivots |
| Here are a few strategies for beginners for finding | | | | Day traders who use daily pivots as their strategy |
| price targets. | | | | will focus on stocks with high volatility. They are |
| Day Trading Strategy #1 - Scalping | | | | looking for major price movements to take |
| Scalping is one of the most popular day trading | | | | advantage of. The profit target in this situation is to |
| strategies. It is a process which involves selling almost | | | | take profits at a sign of reversal. These traders will |
| immediately after you have attained a profit from | | | | try to buy at the low of the day, and sell at the high |
| that trade. The price target in this situation is just | | | | of the day, thus taking in profits. |
| after you've attained a profit. This type of strategy | | | | Day Trading Strategy #4 - Momentum |
| generally involves taking very small profits among | | | | Momentum trading depends on following news |
| many trades. Some scalpers can trade upwards of | | | | releases, or trading strong moves in a stock |
| 100 trades per day. | | | | supported by high volume. The profit targets in this |
| Day Trading Strategy #2 - Fading | | | | situation are when volume starts to fade, and weak |
| Fading is a strategy in which the trader shorts a | | | | bars or candlesticks show signs of reversal. |
| stock after quick upward moves in a stock. The | | | | If you're a beginner, start with small lots of shares, |
| profit target here is when buyers come back into the | | | | costing you no more than 1% of your total trading |
| stock, which starts to drive the price of the stock | | | | capital. Try a few different strategies to see which |
| lower. In this situation, technical indicators will start | | | | one fits your personality, and which you think you |
| showing that the stock is overbought, and ready for | | | | would enjoy. |
| a price trend reversal. | | | | |