Every trader has his own trading strategy. Day traders are buying and selling a stock within the same day and trying to profit on leveraging relatively large capital to take advantage of small price movements in highly liquid stocks. It is a difficult strategy to master and more then 1/2 of people who starting day trading - fall. Most popular day trading strategy call Scalping, and it involves selling almost immediately after a trade becomes profitable, many times it is a meter of 1/4 of a dollar price difference per share.
Each new trader first faces the question: which trades should I try? Fading is another profitable strategy trading based on shorting underlying assets right after rapid move. The philosophy of Fading based on assumption that stock (index) could be overbought at this point, many investors are ready to take profit and the potential buyers could be unsure of buying at this price, after such a rapid increase. This risky strategy many times becomes the most profitable one
Low/Hi of the day is another day trading strategy and success is determined by getting right low point, and it is an instruments used to make well educated guess.
Many traders choose to trade the NEWS. This strategy trading involves buying stocks which start moving right after the news and keep it until they determine first signs of reversal. Ones you determined your trading strategy It is always much more important to follow your strategy religiously, then try and chase the profits.
Statistic Traders are analytical minds, usually they are not gambling but calculating risks, and they are looking to take advantage of hi probability being right. Many people who have degree in exact sciences tend to use statistic strategy in their trades. Many of those traders choosing to trade options, in fact 80% of then expire worthless by selling out of the money, and it gives a lot of data to be analyzed.
Out test places all traders in 6 general categories by trading strategy and suggested markets. If you choose to complete Free Trading Quiz you will get your free toolbox and opportunity to join no cost strategy trading training workshop in your area.
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