Day trading strategies involve buying and selling financial instruments within the same trading day to profit from short-term price movements. Common strategies include scalping, which focuses on making many small profits throughout the day, and momentum trading, where traders capitalize on strong price trends backed by volume. Breakout trading is another approach that relies on entering trades when the price moves beyond defined support or resistance levels. Technical analysis plays a crucial role, using indicators like moving averages, RSI, and MACD to identify entry and exit points. Risk management is essential, with traders using stop-loss orders to limit potential losses. Successful day trading requires discipline, market knowledge, and quick decision-making, as prices can shift rapidly within minutes or even seconds.
