#TradeStories "Day traders" are similar to drift racers; either the handbrake or full throttle. The fundamental principle of volatility-based stock trading is to make money from momentum. For example, if we take a look at the generally accepted levels in the market; classic techniques like "Buy when RSI (Relative Strength Index) is below 30, sell when it is above 70" are very valuable, but this alone may not be sufficient. During the day, the RSI value of many stocks may drop below 30, and more criteria are needed to decide which ones to buy. However, a much smaller group of stocks may rise above 70 and stay there during the day. Therefore, an alternative, more aggressive method, the strategy of "buy when RSI goes above 70 and hold as long as it remains above", is an example of the fundamental philosophy of momentum strategies. The perspective in this example can be applied to other indicators, even to the prices themselves.

As mentioned in Nobel laureate Daniel Kahneman's book "Thinking, Fast and Slow", although emotions significantly contribute to the decision-making process, they can often be misleading. It has been observed that decision-making through mathematical analysis generally yields more positive results compared to sentiment-based decisions. Instead of making random trades based on our feelings, it is much more beneficial to trade based on specific metrics within a daily plan.

Here, let's consider a quantitative strategy as an example, the "scoring strategy". To generate an entry signal where various methods come together; a percentage value can be assigned to each of the different tools such as RSI, trend, candlesticks, moving averages, sentiment analysis, and news analysis, and a purchase can be made if the total percentage exceeds 70%. For example, a value of 25% can be assigned to RSI, and 25% to moving averages, but if other indicators signal a sell, it remains at a total of 50%, which does not produce a buy signal.