Day Trading Strategies

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How Money Flow Indicators Help Day Traders Predict Price Trends

Money flows tell day traders how much money is going into or out of a securities market. They are another set of indicators telling you where the market sentiment is right now and where it may be going [more…]

What the Accumulation/Distribution Index Can Tell a Day Trader

The accumulation/distribution index is a commonly used indicator of money flow in the stock, bond, and commodities markets. Money flows tell day traders how much money is moving in and out of a securities [more…]

Understand Market Money Flows to Improve Your Day Trading

Money flow indicators combine features of price and volume indicators to help traders gauge where the market sentiment is right now and where it may be going soon. The money flow ratio and money flow index [more…]

How Short Selling on a Stock Can Inform Your Day Trading

The short interest ratio is an indicator of stock price pressure — up or down — resulting from short sell positions held in that company’s stock. If the short interest is high, then the security price [more…]

Investigate the Order Book for Up-to-the-Minute Stock Trading Information

Because many indicators are based on stock closing prices and closing volume, they aren’t much use during the trading day. Fortunately, a day trader can get a sense of what’s happening at any given time [more…]

Keep an Eye on the News while Day Trading

Although day traders spend a lot of time with market indicators based on stock price, volume, and other security trading data, information that comes from news releases and news events is at least as important [more…]

How to Identify and Avoid Traps while Day Trading

Traders can be superstitious, and that shows up in trapsthat affect the stock market. As a day trader, you want to be aware of them, because they can affect trading even when there is no logical reason [more…]

How to Maneuver through Market Anomalies while Day Trading

At times the stock market exhibits behavior for which there is no logical explanation. As a day trader, these anomalies affect trading and, if navigated properly, present an opportunity for return [more…]

Standard Strategies Used by Day Traders

Many day traders work out their own systems and trading strategies after they’ve been trading for a while, but they often start with something standardized. You can start trading in a lot of ways. There [more…]

Range Trading Strategy in Day Trading

Many day traders start out with a standardized strategy for approaching the stock market. Range trading, or working within normal high and low movements, is a strategy that has worked for many. [more…]

Day Trading Using a Contrarian Strategy

Momentum day traders buy stocks and bonds when prices are rising and sell when prices are falling. These traders figure that something that goes up in price will continue to go up, and something going [more…]

Day Trading Using a News Trading Strategy

News trading is possibly the most traditional form of day trading. This type of day trader doesn't pay much attention to stock price and volume charts. Instead, he waits for information that will drive [more…]

Pair Up to Define Your Day Trading Strategy

You need a trading strategy before you start day trading. In the pairs trading strategy, a trader goes long a strong stock and short a weaker one in the same category. The idea is that in an up market, [more…]

How Margin Agreements Work

The more money you have to trade on the stock market, the more dollars you can generate as a day trader, even if the return on the trade itself is small. This is why some day traders take on the risk of [more…]

The Costs and Fees of Margin Agreements

Some day traders borrow money or stock from their brokerage firm to leverage their stock trades. Every brokerage firm charges interest on margin. Some charge additional fees. Make sure you fully understand [more…]

How to Manage Risk in Margin Agreements while Day Trading

If you qualify as a pattern day trader, you get two benefits. First, your brokerage firm probably won’t charge you any interest as long as you do not hold a margin loan balance overnight. Second, you may [more…]

What is Short Selling?

Traditionally, stock market investors and day traders want to buy low and sell high. They buy a position in a security and then wait for the price to go up. This strategy isn’t a bad way to make money, [more…]

How to Sell Short when Day Trading

Most brokerage firms make selling short easy. As a day trader, you simply place an order to sell the stock, and the broker asks whether you’re selling shares that you own or selling short. If you place [more…]

Risks in Selling Short when Day Trading

Shorting stocks carries certain risks because a short sale is a bet on things going wrong. Because, in theory, there’s no limit on how much a stock can go up, there’s no limit on how much money a short [more…]

Leverage a Position while Day Trading in Stock and Bond Markets

Leverage is the use of borrowed money to increase returns. Day traders use leverage a lot to get bigger returns from relatively small price changes in the underlying securities. And as long as they consistently [more…]

Leverage a Position while Day Trading in Options Markets

When you are day trading, an option gives you the right, but not the obligation, to buy or sell a stock or other item at a set price when the contract expires. [more…]

Leverage a Position while Day Trading in Futures

A futures contract gives a day trader the obligation to buy or sell an underlying financial instrument (stock, bond) or agricultural commodity, assuming you still hold the contract at the expiration date [more…]

Arbitrage as a Day Trading Strategy

Day traders work fast, looking to make lots of little profits by trading stocks and other securities during a single day. Arbitrage is a trading strategy that looks to make profits from small discrepancies [more…]

Take Advantage of Stock Price Discrepancies while Day Trading

Financial markets are not perfect and day traders can make a profit by recognizing small discrepancies in the prices of stock or other securities. This trading strategy is called [more…]

Scalping for Profits as a Day Trading Strategy

Prices of stocks and other securities change constantly during the day. They move every time an order is placed. There’s a way that day traders can profit from those movements: It’s not exactly arbitrage [more…]


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