Successful intraday trading strategies are necessary when you’re looking to capitalize on minor, frequent price fluctuations. Such price fluctuations happen many times each day – when markets open, close, open again. A reliable, consistent strategy relies on in-depth technical analysis, using charts, signals, and patterns to accurately predict future price moves.
Many people think that there’s only one type of day trading strategy – buy and hold. This is wrong; different traders have different levels of risk appetite and therefore require a variety of trading strategies to protect their capital. For example, traders who have money management issues may be better suited to sticking with long-term stock/stock index trading strategies, rather than day trading. Traders who are risk-averse, however, will be best suited to day trading.
Most common trading strategies involve the use of automated trading systems. These are programs that automatically place and end trades for you. They receive real-time information on market conditions from around the clock and react accordingly. Some of the most popular automated trading strategies include Forex AutoPilot, FAP Turbo, Megadroid, and Traders, amongst others. There are other automated trading strategies that aren’t as popular, including those provided by robots such as Forex Ambush and the Doubling Stocks.
Another method used in day trading strategies is technical analysis. The technical analysis applies the principles of technical trading to the stock market – meaning that it attempts to identify the characteristics of the past to anticipate future trends. There are two main ways to analyze the markets using technical analysis – trend analysis and time frame analysis.
Trend analysis uses past trading data to attempt to predict where the market will go next. This type of trading strategy can be automated and is often used by day traders who don’t have a great deal of experience or knowledge in the markets. Many of these traders will use technical analysis in conjunction with another form of trading strategy, such as automated trading systems. A good example of a trading strategy that relies solely on trend analysis is the Doubling Stocks, which place a bet on how many times the stock price has changed direction in one day.
Another one of the more popular forms of day trading strategies is spot trading. Spotting a stock before it actually goes ahead in the market is referred to as spot trading. Unlike trend or resistance trading, spot trading relies solely on current, real-time prices. In this form of strategy, there is no uncertainty as to where the stock price will move because it can be found immediately. One of the most popular forms of spot trading strategies is the Doubling Stocks, which analyzes four different resistance levels and spot the highest and lowest points possible for the stock price in each level.
Finally, another of the more popular and successful day trading strategies is shorting stocks. Shorting a stock refers to selling a stock for less than the current market price so that you can realize a profit when it goes lower. It is an attractive strategy for people who are not familiar with the ongoing changes in the stock market. The main advantage of shorting stocks is that it is very effective and low risk. However, it should be noted that some types of short-selling strategies, such as option and futures trading strategies, can actually destroy your trading account if used incorrectly. If you are unfamiliar with short selling, it is strongly recommended that you speak to an experienced professional before beginning.
Once a trader has determined which type of trading strategy he or she is comfortable with, he or she must then learn how to manage the various systems that they will be using. Some traders like to keep their systems in one place, such as in their charts. Others like to have their trading terminal open on one screen, with their hotlist, signal service, and stop-loss placed on separate screens. Still, others like to have everything in their trading platform, so that they can see their trading progress in real-time. Whichever trading strategy a trader uses, the important thing is for the trader to adopt some type of trading method that is effective and comfortable for them. It is important that they are able to understand the current market trend and fluctuations before placing their money where it can make the most profit.