Best Day Trading Strategies Signals For Online Trading Stock, Options, Futures
Online Trading with the best day trading signals strategies for trading stock, options, and futures. How to day trade online.
Day trading is the act of buying and selling a stock within the same day. Day traders seek to make profits by leveraging large amounts of capital to take advantage of small price movements in highly liquid stocks or indexes.
Day trading can be a dangerous game for traders who are new at it or who don't adhere to a well-thought out method. Let's take a look at some common day trading strategies that can be used by retail traders.
With momentum day trading strategies for beginners I only look to trade stocks on strong upward or downward trends. But let’s step back for a moment and ask ourselves what we require from a momentum day trading strategy. First of all, we need a stock that is moving. Stocks that are chopping around sideways are useless. So the first step for a trader is to find the stocks that are moving. I use stock scanners to find these. I ONLY trade stocks at extremes. This means I look for a stock having a once in a year type of event. The price action associated with this event is almost always the cleanest. So our second step is doing a little bit of digging to find out what the catalyst is that will drive this stock to have a 30-40% intra day move. Also remember that not all stocks are capable of putting in 30-40% moves. This means we have to filter the stocks that are moving by market cap and float. Stocks with a smaller market cap and float will trade faster. This is because there is a reduced supply of shares, and during times of high demand, these stocks can go parabolic! To find the catalyst I usually check StockTwits to see if somebody has posted a link to the news. I like to trade stocks that recently reported a big earnings beat, a bio-pharmaceutical stock that has just released news, or a small cap stock that has just announced a partnership or contract with a much larger company.
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