There are several types of day trading strategies that traders can use. Here are some of the most common ones:
Scalping: This involves making numerous trades during the day, with the aim of making small profits on each trade. Scalpers typically hold trades for a few seconds to a few minutes.
Momentum trading: This involves following the trend in the market and buying or selling based on price momentum. Traders look for stocks that are moving up or down quickly, and then take a position in the same direction.
Range trading: This involves identifying stocks that are trading in a range between a support and resistance level, and then buying at the support level and selling at the resistance level.
News-based trading: This involves trading based on news events and announcements that are likely to move the market. Traders may take positions in advance of the news, or react quickly to news as it breaks.
High-frequency trading: This involves using complex algorithms and powerful computers to execute trades at lightning-fast speeds. High-frequency traders typically hold trades for just a few seconds or milliseconds.
Each type of day trading strategy has its own advantages and disadvantages, and traders need to choose the one that best fits their personality, trading style, and risk tolerance.
Looking to learn about forex? Take our crash courses at our Forex University. If you’re looking to setup a demo trading account then click here. Finally, if you’re looking for Forex Signals, Forex Portugal provides free & premium signals on-demand.
[ 0 Out of 0 Found Helpful ]
Submit a ticket and we’ll get back to you as soon as possible.