#DayTradingStrategy ā”š Day Trading Strategy: Fast, Focused, & High Risk
Day trading is a trading strategy where traders open and close positions within a single trading day ā not allowing positions to stay overnight. The goal: to take advantage of short-term price movements, usually within minutes to hours.
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š§© Characteristics of Day Trading
ā Short timeframe: Using 1-minute, 5-minute, or 15-minute charts.
ā High volume: Traders make many transactions in a day.
ā Thin but frequent profit: Target profit per transaction is small, but accumulation can be significant.
ā Requires discipline & focus: Traders must monitor the market in real-time.
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š Popular Day Trading Techniques
1ļøā£ Scalping
Opening positions super fast (seconds-minutes).
Target profit is very small (pip/tick).
Usually uses high leverage.
2ļøā£ Momentum Trading
Entering the market when there is major news, economic data releases, or breakouts of important levels.
Focus on volume and strong trend direction.
3ļøā£ Range Trading
Utilizing daily support & resistance.
Buy at support areas, sell at resistance.
4ļøā£ Breakout Trading
Opening positions when the price breaks through a consolidation area.
Suitable for stocks/crypto with high volatility.
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š ļø Key Tools & Indicators
š Moving Average (MA)
š Bollinger Bands
š RSI (Relative Strength Index)
š Volume Analysis
š Candlestick Pattern
š Support & Resistance Levels