Numerous Advantages to Day Trading.
Day Trading Basics for Inquiring Minds.
Day trading is unlike other trading methods where the various time frames often define trading styles. Position traders often hold stocks for months, intermediate traders for weeks, and swing traders for days. Day traders, however, cannot be characterized as holding stocks for one day. There are instances calling for a trade that lasts just a few minutes, or perhaps a few hours. I have had profitable trades last just seconds.
I think you get the idea; day trading is wide range term that encompasses many different trading strategies which take place within a one-day trading period. There will be times in which what began as a day trade develops into a swing trade, and other possibilities for overnight holds, but in general, this publication addresses day trading strategies. There are numerous advantages to day trading.
As you read about the numerous advantages to day trading, the multitude of strategies and tactics that day traders use, (you can’t use them all), it will be your decision to adopt those, or the one, that best fits your temperament. Many day-trading strategies are presented in detail which include chart settings, chart interpretation, execution of the trades, and most importantly, how a trader finds trades, or the best stocks to trade for a particular strategy.
The Fundamental Basics to becoming Successful
Traders who are most successful are those who specialize and refine the use just one or two trading techniques and become experts in their execution. Focusing on one or two strategies will bring repeated success. Every time someone brings out a new strategy, we run to it, hoping for the Holy Grail. Well, I have not found any holy grails in my day, but I have identified a number of tactics that bring repeated success.
Knowing how to execute a particular strategy and being able to find the stocks that are ready to move when you want to trade is the most difficult situation facing most day traders.
There are numerous advantages to day trading as well as disadvantages. Because day traders make more trades than, say, position traders, there are more opportunities for error. Another disadvantage is that day traders often miss the really big moves that some stocks make. Therefore, some day traders let successful day trades develop into swing trades. Confirmed day traders, however, always close their positions before the market closes.
An advantage to day trading is not holding stocks overnight. In this market, anything can happen which might cause stocks to gap against you at the open. I am wired as a day trader and just hate worrying about a position when the market is closed.