The Different Day Trading Styles
If you are new to the world of day trading, then it can all seem a bit overwhelming at first.
There are many different styles of day trading out there, and choosing one that best fits your personality is the key to making long term profits as a day trader.
Selecting a day trading style that doesn’t feel comfortable will never be a good fit. This is why you should never follow a trading plan just because your friends are doing it, or because some expert said that you should.
The saying “run your own race” has never been more appropriate.
So how do you find out which day trading style is the best fit for you? Well, the only way to really find that out is to test different things.
Once you find something that feels right, stick with it. If you are a beginner and don’t like the idea of risking your money just yet, you can still do this by way of paper trading.
Below are some of the most common styles of day trading. This is not a complete list, but it will give you a better idea of what’s out there.
The trend following strategy is very popular amongst day traders. Basically, trend following is where a trader looks to invest in a trade where the stock is trending in a particular direction.
A trader will look to ride the trend for as long possible, but once it shows signs of reversing, they look to get out quickly.
The whole philosophy behind scalping is that it’s easier to make a profit on small moves in a stock price, rather than looking for the large moves.
Traders who follow the scalping method, or “scalpers” as they are more commonly known, basically buy or sell blocks of shares, and then look to quickly “flip” them for a small profit.
This is more of a patient strategy, as the the focus is on small consistent gains. Traders looking for long term predictable profits are amongst those who follow this day trading style.
The main downside to scalping is the fact that many trades need to be made over the course of the day. Not everyone has the time to do this.
This style of day trading is perfect for people who are analytical and like to have a more “scientific” approach to things.
Technical trading makes heavy use of things such as charts and index graphs, as day traders try to analyze the history of trades and look for patterns.
Once they find a pattern, they will base their current actions on that pattern, believing that if something happened before, it has a good chance of happening again
At the end of the day, there is no foolproof way to guarantee success in day trading, regardless of the strategy you decide to implement.
All of the different styles of day trading come with their pros and cons, and once you gain more experience in the 888 Casino market, you will find yourself developing your own unique system based on the elements found in the various styles.