View
712
Download
10
Embed Size (px)
DESCRIPTION
By www.ProfitableTradingTips.comProfitable Day Trading StrategiesThere are a number of profitable day trading strategies. The day trader typically chooses on the basis of opportunity as well as his own experience and skill set. No matter which one of the profitable day trading strategies a trader follows, technical analysis of equities is the backbone on trading success. With this caveat in mind let us look at a number of profitable day trading strategies.Trend Following in Day TradingTrends occur during the trading day just as they do over day, weeks, and months. Traders follow the price of a given equity with a sense of what the fundamentals dictate and where market sentiment is taking a stock. The smart trader jumps in to buy and sell when his analysis indicates that the equity price is about to turn. This can be one of the most profitable day trading strategies in competent hands. An interesting sidelight is the relationship between trading volume and Google trends. It turns out that many investors tip their hand so to speak by researching their stocks on the search engine. Traders can often successfully anticipate which stocks to follow by checking Google trends.Responding to the News in Day TradingOne means of how to profit from online stock trading is to simply be present at the trade station during the trading day. The business of trading the news is one of the most profitable day trading strategies and probably the most profitable when professionally combined with other strategies in a trader’s skillset. Investors typically believe that the values of equities are set by the fundamentals. However, in reality, equity value is set by the perception of the future value of fundamentals. When a new item hits it may drastically change the market’s view of the fundamentals of a stock, commodity future, or Forex pair. There is often a whipsaw effect in which the equity price overreacts to the news and then over corrects before settling into a market consensus for the day. Being at your trade station when the news arrives can be one of the most profitable day trading strategies.Rebate Trading in Day TradingRebate trading is sort of like being at the California gold rush and selling picks and shovels instead of climbing up and down the Sierras looking for a vein of gold. Customers of the electronic communications networks, ECN’s, used for much of day trading charge commissions to traders who expect to have their orders filled at the most advantageous price. This is how ECN’s make their money. Rebate trading takes advantage of the fact that many ECN’s pay market makers who place limit orders. Traders who engage in limit trading commonly stick to stocks that trade in high volume. They set their limits in small increments. And, they engage in astute technical analysis in order to correctly anticipate the direction of the equity they are trading.
Citation preview
Profitable Day Trading
Strategies
By www.ProfitableTradingTips.com
There are a number of profitable day trading strategies.
By www.ProfitableTradingTips.com
The day trader typically chooses on the basis of opportunity as well as his own experience and skill set.
By www.ProfitableTradingTips.com
No matter which one of the profitable day trading strategies
a trader follows, technical analysis of equities is the
backbone on trading suc-cess.
By www.ProfitableTradingTips.com
With this caveat in mind let us look at a number of profitable
day trading strategies.
By www.ProfitableTradingTips.com
Trend Following in Day Trading
By www.ProfitableTradingTips.com
Trends occur during the trading day just as they do over day,
weeks, and months.
By www.ProfitableTradingTips.com
Traders follow the price of a given equity with a sense of what the fundamentals dictate and where market sentiment is
taking a stock.
By www.ProfitableTradingTips.com
The smart trader jumps in to buy and sell when his analysis indicates that the equity price is
about to turn.
By www.ProfitableTradingTips.com
This can be one of the most profitable day trading strategies
in competent hands.
By www.ProfitableTradingTips.com
An interesting sidelight is the relationship between trading volume and Google trends.
By www.ProfitableTradingTips.com
It turns out that many investors tip their hand so to speak by researching their stocks on the
search engine.
By www.ProfitableTradingTips.com
Traders can often successfully anticipate which stocks to follow by checking Google
trends.
By www.ProfitableTradingTips.com
Responding to the News in Day Trading
By www.ProfitableTradingTips.com
One means of how to profit from online stock trading
is to simply be present at the trade station during the trading
day.
By www.ProfitableTradingTips.com
The business of trading the news is one of the most
profitable day trading strategies and probably the most profitable when professionally combined with other strategies
in a trader’s skillset.
By www.ProfitableTradingTips.com
Investors typically believe that the values of equities are set by
the fundamentals.
By www.ProfitableTradingTips.com
However, in reality, equity value is set by the perception of the future value of fundamentals.
By www.ProfitableTradingTips.com
When a new item hits it may drastically change the market’s view of the fundamentals of a stock, commodity future, or
Forex pair.
By www.ProfitableTradingTips.com
There is often a whipsaw effect in which the equity price
overreacts to the news and then over corrects before settling into a market consensus for the
day.
By www.ProfitableTradingTips.com
Being at your trade station when the news arrives can be one of the most profitable day
trading strategies.
By www.ProfitableTradingTips.com
Rebate Trading in Day Trading
By www.ProfitableTradingTips.com
Rebate trading is sort of like being at the California gold rush and selling picks and shovels instead of climbing up and
down the Sierras looking for a vein of gold.
By www.ProfitableTradingTips.com
Customers of the electronic communications networks, ECN’s, used for much of day trading charge commissions to traders who expect to have their orders filled at the most
advantageous price.
By www.ProfitableTradingTips.com
This is how ECN’s make their money.
By www.ProfitableTradingTips.com
Rebate trading takes advantage of the fact that many ECN’s pay market makers who place limit
orders.
By www.ProfitableTradingTips.com
Traders who engage in limit trading commonly stick to
stocks that trade in high vol-ume.
They set their limits in small increments.
By www.ProfitableTradingTips.com
And, they engage in astute technical analysis in order to
correctly anticipate the direction of the equity they are trading.
By www.ProfitableTradingTips.com
At times of volatile stock trading one who engages in successful rebate trading makes his money both from rebates and from successful anticipation of market direction making this one of the very profitable day
trading strategies.
By www.ProfitableTradingTips.com
For more insights and useful information regarding stock, options, commodities, and
futures trading visit
www.ProfitableTradingTips.com.