DAY TRADING STRATEGIES THAT WORK
Most people are always looking for day trading strategies that work and that is why every trader has that strategy that he or she falls back to all the time. It is also important to note that what works for someone may not work for another person and that is why it is important to learn as many strategies as possible.
As the trader gets to do more trading over a long period of time, he or she gets to learn new and additional strategies and that is what will help the trader to identify strategies that will make him or her be a successful trader. If a trader is looking for day trading strategies that work then the following are some of them :-
- Range Trading
Range trading is known as one of the best strategies that most forex traders use. Range trading. Traders use range trading when they want to identify ranges and predict currency pair will behave.
A good trader should be able to learn how the normal high and low range of a specific stock and know how to make good trade with it. There are some traders who do use range trading especially when the market is flat while others seek for other strategies.
- News Trading
This is a common strategy that is widely used by day traders especially when gauging the stock market. Major news events do affect the stock market and sometimes these usually make traders to be on high alert on what course of action they can take.
This strategy is simply because a trader only has to keep up with the current news stories and buying and selling when need arises. Traders should be advised not to trade during high-impact announcements because of how erratic some of them can be.
- Contrarian Trading
Contrarian trading involves or requires you to trade against the present market situation. It has also been noted over time how many beginning traders struggle with this kind of strategy. Contrarian strategy works well when the market reaches a saturation level.
Most traders look at this strategy as odd especially if they have not been well trained but those who are well trained have mastered the art of the strategy. This strategy has proven to be one of the most profitable and effective trading strategies especially when correctly implemented.
- Pairs Trading
Just as the name suggest, pairs trading is a strategy that involves around trading in pairs. What usually takes place is that pairs traders wait for weakness in the correlation and the go long on the over performer while on the other hand going short on the under performer.
Over the past years, pairs trading has gained a lot of attention as a good investment strategy for most traders in the market. Internet and technological advancement has made it possible for pairs trading to be easy online.
When traders deal in pairs trading, the main advantage that they have is that when they make the trades simultaneously they increase their chances of making more profits, or possibly losing too.
Day trading can be fun and profitable
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