Day Trading Style «

Day Trading Style



Definition:
Day trading as a style of trading is a short term style where trades are held for anywhere from a few seconds to a few hours, but are always exited before the end of the trading day. This style of trading includes many different types of trades, such as :

•Scalping – Very short term trades that may only last a few seconds, with profit targets of only a few ticks. Scalping is usually performed using the time and sales (also known as tape) so that the trader can react as quickly as possible to the market conditions.
•Trend Trading – Short term trades that may last anywhere from a few minutes to a few hours, with profit targets of several or more ticks. Trend trading is performed using a graphical chart, with or without indicators, with trades following the current market direction (e.g. long trades on an upward moving day).
•Counter Trend Trading – Short term trades that usually last only a few minutes, with profit targets of several ticks. Counter Trend trading is performed using a graphical chart, with or without indicators, trading against the current market direction (e.g. long trades on a downward moving day).
•Range Trading – Short term trades that usually last only a few minutes, with profit targets of several ticks. Range trading is performed using a graphical chart, with or without indicators, trading in both directions (long and short) while the market moves sideways.

Day trading is a very popular trading style with professional traders, and is used by individuals and commercial traders alike. Day traders always close their positions before the end of the trading day, which allows them to avoid potentially adverse conditions, such as opening gaps.

 

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