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The 3 Most Popular Day Trading Strategies

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Who says you have to depend only on your stock broker? Instead, become a winning stock trader with these day trading strategies. Day trading is a strategy for daily stock buying and selling.  

This article walks you winning trading strategies like Breakout and Momentum trading. You’ll also learn the value of securities research.

If you are new to day trading, these three-day trading strategies puts you in the game. However, it doesn’t hurt to learn more trading strategies if this isn’t your first rodeo. Explore the best day trading strategies for beginners and professionals. 

The Basics of Day Trading Strategies 

Persistence is essential for successful day trading. But unfortunately, “40% of traders quit after a month.” Secondly, the stock market prohibits private citizens from trading on the market. So you must research to find a suitable stock broker firm. 

Different firms specialize in various day trading fields. So before implementing our three, day trading strategies, know your domain. Also, you should vet stock brokers and day trading agencies.  

You should set a budget. There’s always a risk in buying and selling, so don’t mortgage the farm! 

You might not want to try many trading strategies simultaneously if you are a beginner. The danger is that you might become frustrated should you lose a lot of money. Also, you don’t know which trading strategy is best for you.

Besides sticking with a strategy, you should develop a stock chart. Then, when you’re ready, study these three day trading strategies. 

  1. Breakout
  2. Scalping
  3. Momentum

You might also consider news day trading and tips from Algo Trading.

1) Breakout Day Trading

Breakout trading requires a change in a stock price. These stock price changes can increase or decrease. If your preferred stock’s price spikes above what you listed, monitor its breaking point. 

You should consider this exit point, so you don’t sell the stock too soon. Likewise, if you allow the Breakout stock to dip in price, it becomes harder to sell. Stock profits come when you sell a stock at its highest point. 

2) Scalping Day Trading 

Scalping day trading involves trading many smaller value stocks throughout the day. If you’re an experienced scalper, it’s common to “make several trades within seconds.” 

Scalping day trading requires quick thinking to make trades. Therefore, you should first practice this trading strategy. Then, scalping requires you to sell when your stocks dip in price. That way, you can minimize losses. 

The Scalping trading strategy involves you monitoring several stocks. First, you should sell if they don’t increase in price before the stock dips. Also, sell stocks that are high sellers that day.  

3) Momentum Day Trading 

Momentum trading involves finding stocks that are increasing in price. Stocks that are in the news qualify for Momentum day trading. You should study the stock charts for consistent moving.  

It is wise to sell those securities before they peak. Otherwise, they might decrease in value. 

More on Day Trading Strategies 

Using the right day trading strategies can be highly profitable. But it requires you to be patient and committed. Successful day traders must accept making mistakes in the beginning. 

So again, it is wise to study the financial market for volatility. You can visit the finance section for professional tips and more.

Also, you will find valuable information on how to secure your wealth. Day traders can read about the latest technology news and business software. 

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