| Day trading is the practice of buying and selling | | | | when the price is at the lower end and sell short |
| financial instruments, such as stocks, stock options or | | | | when price is at the upper end. While "Contrarian |
| equities, within the same trading day and to have | | | | Investing" is a strategy that assumes that prices that |
| your positions closed before the market close for the | | | | is rising or falling will go to the opposite direction |
| day. Day trading used to be exclusive to financial | | | | eventually, thus trading in the opposite direction. |
| firms and professional investors, but the advance of | | | | With more confidence, you can try "Scalping" or |
| technology has seen the growth of day traders | | | | "News Playing". "Scalping" is a strategy where you |
| working at home. | | | | exploit the inefficiency of the market by taking profit |
| With its quick returns, day trading is very profitable | | | | where small price gaps happens between the bid and |
| when you do it right. But its highly volatile nature can | | | | ask prices. News Playing is another strategy where |
| also make you extremely unprofitable. It can be a | | | | you anticipate the market's reaction based on the |
| difficult skill to master, over 90% of those who tried | | | | recent news or rumors of a certain financial |
| fail. But don't let the odds beat you. By learning | | | | instrument while bearing in mind that sometimes the |
| intraday trading strategies and techniques, and by | | | | market's reactions are not always match with the |
| practicing continuously, you can become one of the | | | | tone of the news. |
| few who are making millions of dollars per year. | | | | With more understanding of how the market works, |
| There are several intraday trading strategies and | | | | you can also try "Price Action". "Price Action" is a |
| styles. Beginners usually start with "Trend Following", | | | | trading strategy in which you are keeping data of |
| assuming that the financial instruments that are rising | | | | price movement, chart patterns, and other market |
| will continue to rise and the financial instruments that | | | | data and use the combination of them to determine |
| are falling will continue to fall. | | | | whether to make trade or not. |
| Other strategies for beginners are "Range Trading" | | | | Not all strategy works for everybody and in every |
| and "Contrarian Investing". "Range Trading" is | | | | market. To maximize your profit, you need to know |
| assuming that the financial instruments' price is within | | | | which day trading strategies works best for you and |
| certain range; every time they hit a high, it falls back | | | | your characteristic. |
| to the low, and vice versa. Thus traders buy long | | | | |