My Guide to Day Trading

[shrey verma]

I have been trading stocks for a couple of years now, so for all the new traders i will start with some short tips on how to start trading stocks, I will start with a few basic steps for now and will keep adding more in depth analysis moving forward in the hope that its a learning curve for both myself and the readers of this thread:

• Knowledge is Power. ...
• Set an Amount Aside. ...
• Set Aside Time, Too. ...
• Start Small. ...
• Avoid Penny Stocks. ...
• Time Those Trades. ...
• Cut Losses With Limit Orders. ...
• Be Realistic About Profits.

 

[shrey verma]

Active Trading strategies :

• Day Trading: Day trading can be considered as an acronym to active trading. It is the method of buying and selling securities on the same day. Positions are closed out on the same day of trading. This strategy is generally followed by professionals such as specialists or market makers.
• Positional Trading: Some actually consider position trading to be a buy-and-hold strategy and not active trading. However, position trading, when done by an advanced trader, can be a form of active trading. Position trading uses longer term charts – anywhere from daily to monthly – in combination with other methods to determine the trend of the current market direction. This type of trade may last for several days to several weeks and sometimes longer, depending on the trend.
• Swing Trading: These are the traders that actually get in the game when a trend breaks since at the end of a trend there is huge price volatility which can be taken advantage of by swing traders who often create new trading rules based on their technical or fundamental analysis. Some of the recent examples of swing trading is in this link
  https://www.thestreet.com/files/k/dst/pdf/dst_bonrep_3swing.pdf
• Scalping: Scalping is one of the quickest strategies employed by active traders. It includes exploiting various price gaps caused by bid-ask spreads and order flows. The strategy generally works by making the spread or buying at the bid price and selling at the ask price to receive the difference between the two price points. Scalpers attempt to hold their positions for a short period, thus decreasing the risk associated with the strategy. Additionally scalpers don't play the high volume game and only tend to make their profits by trading low volumes.
  
  I hope this is worth a read. Do drop in some comments if you have any questions or requests which i can help with.