Which strategy is best for day trading?

Day trading is the most challenging way to do trading in the stock market. As the buy and sell orders are executed within the day, it is crucial to time the market and identify the exact entry and exit points. There are many strategies to be successful in day trading.

Here are some of the prominent ones:

1. Opening range breakout strategy
2. Demand and supply imbalances
3. Relative strength index and average directional index

Every strategy can bring good returns if deployed in the right manner. Also, good knowledge about the volatile market and a sound experience is a must. However, the opening range breakout strategy is relatively common, simple and best to use as a beginner or an advanced trader.

The fluctuations in the stock prices at the beginning of the trading session refers to the opening range. Thus, it shows how the price trend is whether high or low. The opening range is generally between half an hour to 3 hours. You can take the stock positions after identifying the highest and the lowest points. If the stock tends to move upward from the breaking range, the prices might remain bullish.

On the other hand, if the stock tends to move downward, the trend might remain bearish. However, it is important to watch the market trends and any political or economic announcements that can alter the day.

Similar threads