What are day trading strategies?
Day trading strategies mean buying or selling any financial instruments or stocks within only one trading day that usually lasts from 9:30am to 4:30 pm according to New York Stock Exchange. During these hours, traders have an opportunity to open and close as many trades as they wish.
Day trading strategies are plenty and it is important to know at least a few the most profitable ones. Their main advantage is making money within a short period of time which is by the way very suitable for impatient traders. That’s why they keep coming back to this type of strategies over and over again.
The first and most important rule concerning any day trading strategy is the control of emotions. Only controlling yourself will help you to achieve so desirable success in this sphere. Moreover, emotions have absolutely nothing to do with good trading and this is not a trait of character professional traders should have.
Another rule is to stay focused and stick to the plan you have chosen. Market place is a very unpredictable place and nobody knows what might happen within the next minutes or hours, therefore it is so important to stay focused and follow a certain strategy you know and understand to cope with stress or any other unpredicted situation.
And the third rule is the complete understanding of trading indicators. Lack of knowledge about indicators will never lead you to a successful trading and none of the most effective strategies will ever help you. Consequently learn as much as you can and you will reach all your goals.
4 Best Day Trading Strategies
As it was mentioned above, there exist lots of day trading strategies yet we would like to make an emphasis on 4 most profitable ones.
- Range Trading – this strategy requires very careful and accurate research of the market or some particular stock. As a result of a good research traders have high chances to receive large incomes;
- News Trading – this day trading strategy is one of the most simple as it is literally based on major news events and traders should just act according to them. The most important here is to stay as informative as it is only possible by reading financial newspapers, watch TV etc;
- Pairs Trading – it is clear from the name of the strategy that it is connected with trading currency pairs. Here traders should just choose suitable category and go short on a weak stock or on the contrary go long on a strong stock.;
- Contrarian Trading – not all beginning traders prefer this particular strategy as it requires trading against to what a stock suggests at this exact time. Yet the majority of professional investors know how much money they can make thanks to contrarian strategy and use this knowledge wisely;