Author Topic: Top 3 Day Trading Strategies: Beginner?s Guide  (Read 991 times)

Offline joelstevens

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Top 3 Day Trading Strategies: Beginner?s Guide
« on: February 13, 2017, 02:51:20 am »
Irrespective of any market (it does not matter whether it is the commodities, forex, bonds, equities and treasuries market), trading is the central activity. In financial markets, trading refers to an act of selling and buying financial securities to gain profit over a certain period of time. During carrying out a financial transaction, the traders follow different types of trading practices. They mainly follow three different types of trading- day trading, swing trading and position trading. Day trading and swing trading are basically short term trading, and position trading is a long term trading. Each of the trading types serves a different purpose that is suitable for different investors.

If you are a novice trader and want to trade as a day trader, then you should study and gather knowledge about day trading. Day trading is a short term trading types wherein traders sell or buy currencies and completes their trading within a day. As day trading is completed within a day, it reduces the risks that are associated with overnight movements in the market. The traders have to exit the market by the end of the day.  The day traders trade in an objective to earn quick benefits on an intra-day basis. Discussed below are three major types of day trading strategies that are followed and practised by day traders (Information Credit- Corner Trader).

1.   Scalping strategy:
Scalping strategy is one of the most popular strategies in the day trading. This strategy involves selling just after a trade becomes profitable. The followers of this strategy believe in making profits by taking small steps rather than big moves. By following this strategy, you can trade 10 to a couple of hundreds trade in a day. According to that strategy, the scalpers purchase currency pairs at the bid price, and sell them when the price increases and indicates a profitable trade.

2.   Fading Strategy:
Fading strategy is a little risky, since the investors (who follow fading) trade against the prevailing market direction. The followers of this strategy buy currencies in times of declining prices, and sell them when the currency price increases. Because of this, this strategy is also known as a contrarian strategy. Though it is risky, has immense potential for short-term profits.  This strategy offers handsome amounts of return when it works effectively.

3.   Daily Pivot:
Daily pivot strategy is based on a statistical tool, known as pivot table. This pivot table helps in determining the pivot point, resistances and supports for the current movement. Traders or investors follow this strategy to gain profits from daily volatility of stocks. The traders buy stock when the price is at the lowest and sell it when the price is highest.

Now it is up to you to decide which strategy is suitable for your purposes. By following one of these strategies, you can become an expert trader.

Offline lumila

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Re: Top 3 Day Trading Strategies: Beginner?s Guide
« Reply #1 on: September 06, 2017, 04:36:53 am »
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Re: Top 3 Day Trading Strategies: Beginner?s Guide
« Reply #1 on: September 06, 2017, 04:36:53 am »