Day Trading Strategies:
Some of the frequently used days trading strategies include:
1. Momentum Trading Strategy:
The momentum trading strategy normally involves buying or selling that show signs of a trendy pattern or is exaggerated by news release. The plan here is to buy a stock at low prices and sell them at a higher price.
This is one of the popular and important strategies that engage recurring and fast buying or selling of stocks within seconds or minutes. The target price here is to get profitability per share with each transaction having the minimum risk.
3. Daily Pivots:
This style of trading engages profit from a stock’s volatility. The effort is to buy at the low of the day and sell at the day’s high price. The price target in this style is at the sign of a turnaround for profitability.
There are many advantages to day trading like increased leverage and zero overnight risk because of low margins as the trades are squared off on the same day.The non-exposure to potential losses arising out of external factors makes it safe to trade.