Trading Strategies – Part 7: Day Trading Strategy
Day trading involves buying and selling within the same trading day to profit from small price movements.
How It Works
Positions are opened and closed on the same day.
Focuses on intraday price fluctuations.
Key Indicators
1. Moving Averages – Identify short-term trends.
2. RSI – Spot overbought/oversold conditions.
3. MACD – Confirms momentum.
4. Volume – Confirms price action.
5. Bollinger Bands – Identifies volatility.
Steps
1. Pick Liquid Markets.
2. Use Short Timeframes (1-15 mins).
3. Identify Trends or Reversals.
4. Enter Quickly & Set Stop-Loss.
5. Take Profits Fast.
Pros & Cons
✅ Pros: No overnight risk, frequent opportunities.
❌ Cons: Stressful, requires full attention.
Next in Part 8: Momentum Trading Strategy – How to ride strong trends. Stay tuned!
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