Home
Day Trading Firm Home Based Business Secretebayinterviews Resources
Day Trading Online Links
Privacy Policy
Sitemap

Sponsored Links

 

Navigation

Day trading accounts
Day trading online
Day trading computers
Day trading school
Day trading tools
Day trading simulator
Day trading tips
Online day trading
Free day trading stock picks for north american markets
Stock day trading

Books


The Different Styles Of Day Trading

There is no foolproof method of earning a profit through day trading, and most people new to the trade start their trading careers armed only with the fundamental knowledge required to inform their initial decisions. As they learn the techniques required to be a successful day trader, however, each will form his or her own trading system based on the various day trading styles.

 

The following are the various styles of day trading currently available:

Swing Trading - Swing trading was developed in the 1900s and involves making predictions about the future behavior of the market based on the trends or swing that it followed in the past. While a day trade is typically defined as a trade that does not last for a duration of more than a day, swing trades may last anywhere from a single day to several weeks. The principle behind this form of trading is the belief that significant profits can only be realized if a trade is held for a minimum period of time. The advantage of swing trading is that traders have a better chance to take advantage of the trend that the market is currently following.

Momentum Trading - Momentum trading experienced a period of unpopularity before the 1990s, before regaining its popularity thanks to the liveliness of the market during the 1990s. The main advantage of this style for traders is that they experience minimal risk when holding their positions overnight. Momentum traders earn a profit by investing in stocks that are rising in value and attempt to ride this upward momentum until they reach a certain level of profit. At any sign of a downturn in the value of the stock, momentum traders will abandon the stock as fast as possible.

Technical Trading - This style of trading is based entirely on charts, graphs, and various other forms of data, making the style broader in terms of approach and perspective. Technical traders typically base their decisions on past trades, previously proven indicators, and the patterns that led to good trades before. All of this past information is used to inform future trades. The disadvantage to this style of trading is that the sheer amount of technical information available may obscure the judgment of the trader.

Scalp Trading - This is perhaps the most popular trading style, where traders make multiple trades during the course of the day in an attempt to realize small profits from each trade, taking advantage of short-term possibilities. This style of trading is perhaps the safest, as an investor's money is spread out over a large number of investments, so there is little chance of losing on all of them. It can, however, lead to overtrading.



 

Day_Trading Recommended Products


Day Trading Computers News

Trade of the Day: Nordstrom (JWN) - Investorplace.com


Trade of the Day: Nordstrom (JWN)
Investorplace.com
My index indicators are giving neutral to bullish readings, a massive upgrade from last week's bearish to neutral. The rapidity with which the indexes have changed from bullish to bearish and back again points out how much influence computer trading ...

Read more...


Hambycast: The nerd science of campaigning - CNN


Hambycast: The nerd science of campaigning
CNN
With election day less than two weeks away, their offices resemble a day-trading firm, with scores of smartly-dressed young operatives glued to their computers and pushing out content aimed at mobilizing voters. "Right now, we are optimizing our ...

and more »

Read more...


Whitworth opens high-tech trading room for Wall Street education - KREM.com (subscription)


KREM.com (subscription)

Whitworth opens high-tech trading room for Wall Street education
KREM.com (subscription)
The new HH Larry Larison Trading Room at the Whitworth features several computers for students to research stocks, a giant touch screen TV for the group to discuss investments as well as a ticker displaying prices for 100 different companies. "The ...

Read more...


How to survive an apocalypse: What pop culture taught me about living through ... - Salon


Salon

How to survive an apocalypse: What pop culture taught me about living through ...
Salon
And though we laughed it off the next day, suddenly I found myself bookmarking power banks, life straws and researching an invention called The Powerpot which charges your mobile devices and boils hot water. Then my ... In Edan Lepucki's book ...

Read more...


Keywords: SEC, enforcement action, high-frequency trading, HFT - Mondaq News Alerts (registration)


Keywords: SEC, enforcement action, high-frequency trading, HFT
Mondaq News Alerts (registration)
... found that during a six-month period in 2009, "using high-powered computers, complex algorithms, and rapid-fire trades, Athena manipulated the closing prices of tens of thousands of [NASDAQ] stocks during the final seconds of almost every trading ...

and more »

Read more...