Day Trading
Day trading, also called intraday trading, involves traders who buy and sell stocks in a day and employ different strategies in an effort to generate profit. Day traders close all their open positions at the end of the day, leaving no open position overnight. They use different strategies for day trading, some of which are
● Scalping
Day traders, while using high leverage, profit from small movements in the prices of a stock. Traders use hard stop-loss and take-profit points to maintain discipline because this strategy is based on consistent small profits. One large losing trade can quickly eliminate all previous winning trades.
● News trading
Keeping a close eye on the news, day traders quickly take their positions based on the news about a stock they wish to trade. They make a profit when the stock moves in their expected direction.
● Range trading
Day traders use this strategy when the market is non-volatile and moves in a range. The traders buy a stock when it enters the oversold area (support area) on a daily chart and sell a stock when it enters the overbought area (resistance area) on a daily chart.
● Trend trading
Trend trading is buying a stock when the trend of the market is upwards (increase in prices) and selling it when the trend of the market is downwards (decrease in prices).
Sounds a little overwhelming, right? Don’t worry. You, too, can also learn day trading and be a successful day trader.
Learning Day Trading:
With the dawn of modern technology, anyone can do day trading. All you need is a brokerage account, a smartphone and an internet connection to start trading. You can day trade using your mobile phone while sitting in the comfort of your home, or you can buy your favorite stock with a single tap while enjoying coffee at a coffee shop.
However, buying or selling a stock with a tap on your phone screen doesn’t mean day trading is easy. While day trading is an exciting and a rewarding career to adopt, it requires technical analysis skills, emotional intelligence, risk management, money management, among many other skills.
To earn a livelihood trading stocks, you need to possess better skills than those of an average trader. Although the internet is full of useful resources where you can learn day trading strategies, the best way to learn day trading and adopt it as your career is to join a community support group consisting of professional traders.
The community support group offers comprehensive learning resources about stock trading, along with innovative and advanced analysis tools, comprising stock scanners and charting softwares. The courses and tools in the community support group are created by professional traders and will equip you with the skills required to be successful in the stock market.
