Daily trading, or day trading, involves buying and selling securities within the same trading day. The goal is to capitalize on short-term market movements.
Scalping
- Description: This strategy involves making dozens or hundreds of trades in a single day, aiming to "scalp" small profits from each trade.
- Execution: Traders look for small price gaps created by order flows or spreads and hold positions for a few seconds to a few minutes.
- Tools: Fast execution platforms, real-time news feeds, and technical analysis tools.
Momentum Trading
- Description: Momentum traders look for stocks moving significantly in one direction on high volume.
- Execution: Buy stocks that are trending upwards and sell them at the peak or short-sell stocks that are trending downwards.
- Tools: Momentum indicators like Relative Strength Index (RSI), moving averages, and volume analysis.
News-Based Trading
- Description: Trading based on news releases or significant announcements that can affect stock prices.
- Execution: React quickly to news events that can cause sharp price movements, such as earnings reports, mergers, or economic data releases.
- Tools: Real-time news feeds, economic calendars, and volume analysis.
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