#DayTradingStrategy Key Features
* Very Short Time Horizon: Trades are opened and closed within minutes or hours.
* High Frequency of Trades: Day traders typically execute multiple transactions per day.
* Taking Advantage of Volatility: They seek to benefit from price fluctuations, even the smallest ones.
* Use of Leverage: The use of leverage is common to amplify potential profits, although this also increases risk.
* Dependence on Technical Analysis: Most day traders base their decisions on chart analysis, technical indicators, and price patterns.
* Strict Risk Management: It is essential to set loss limits (stop-loss) and profit targets (take-profit) to protect capital.
Common Instruments
Day traders often operate with a variety of instruments, including:
* Stocks: Especially those with high liquidity and volatility.
* Currencies (Forex): The forex market is known for its high liquidity and constant movements.