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6 Best Day Trading Strategies for Beginners

6 Best Day Trading Strategies for Beginners

As a beginner in the world of day trading who wants to maximize profits, you would want to know what the best day trading strategies are. The phrase “day trading” refers to the repeated buying and selling of equities throughout the course of the day. According to the U.S. Securities and Exchange Commission, day traders anticipate that the stocks they acquire will increase or lose value during the short period of time that the day trader owns that asset, which is generally only a few minutes or even seconds (SEC). Day traders are stock market participants who seek larger gains at the expense of a considerably higher chance of loss. These investors think that by employing the proper day-trading methods when they start trading, tiny daily gains will build up to large long-term returns.

Day traders have their own vocabulary, from candlestick charts to candlestick patterns to momentum tactics. Warrior Trading and other online forums provide day-trading advice, assistance, and tactics, but day trading is hazardous and should only be done by speculative individuals who can afford to lose the money they’re trading with.

Here are some pointers for anybody interested in dabbling in the high-risk, high-stakes world of day trading. You’ll learn about five day-trading methods that, with a lot of effort and a little luck, may succeed. You can try them out if you want to make money by buying and selling stocks in a single day – but don’t expect to be successful straight immediately.

6‌ ‌Best‌ ‌Day‌ ‌Trading‌ ‌Strategies‌ ‌For‌ ‌Beginners‌

1. Momentum Trading

An investor using a momentum approach buys a stock whose price is rising. Momentum stocks are rare and difficult to discover – according to Warrior Trading in an Immediate Edge review, only approximately 10 out of 5,000 will meet the requirements on any given day. If you’re employing a momentum trading technique, look for the following characteristics in stocks:

A significant price change is caused by catalysts such as unexpected earnings growth, the discovery of new therapy by a pharmaceutical business, or news that a tiny company would be purchased by a larger corporation.

A 30-40% increase in the value of the stock. Smaller stocks trade quicker owing to a lower number of outstanding shares – the float should be less than 100 million shares.

Trends or ideas for momentum trading may be found using tools such as StockTwits, a financial messaging platform.

Warrior Trading places a stop-loss order immediately below the initial price fall to safeguard against large losses. The stop loss function is similar to insurance in that you put a sell order for the stock at a predetermined price, and if the stock quote falls below a certain threshold, the shares are automatically sold, protecting you from additional losses.

2. Breakout Trading

A breakthrough trade occurs when the stock price climbs over the previous top resistance price. However, it is not as simple as looking at a chart, identifying resistance, and then purchasing following a breakout. You should keep an eye on the volume of stock trading, or how many shares are changing hands. According to Fidelity, high-volume breakout transactions are more likely to be sustained at the new higher price than low-volume breakouts. Lower-volume breakouts are more likely to fall below previous resistance levels, making profiting more difficult.

In most situations, the stock will retreat after hitting the resistance level until a trigger for a larger price move is present. Above this point, there are more sellers than buyers, preventing the price from increasing any further.

3. Pullback Trading Strategy

The first stage in the pullback approach is to find a company or ETF that has a well-established trend. Next, keep an eye on the trend until there is a price drop away from it. If the established trend is upward, then a downward price movement — or pullback — is a buying opportunity for the day trader.

Technical charts are used by day traders to determine the trend of a stock. Fidelity suggests searching for an uptrend with at least two consecutive high price movements prior to a pullback or price decrease. Alternatively, if you were shorting the stock, you would watch for two consecutive declines in price. And if the trend fully reverses after you buy in, don’t be alarmed; the trend generally continues in a current way for a long time. You could identify downturn prospects among the stocks that have made the most gains.

4. Following the Trend

Anyone who follows the trend will purchase when prices are increasing and sell when prices are falling. This is based on the premise that prices that have been consistently growing or dropping would continue to do so. One example of this – speculative investing – is a method based on the belief that the price increase will revert and fall. The contrarian buys in the decline and short sells in the rise, with the explicit anticipation that the trend would reverse.

5. Scalping Strategy

A scalping approach is based on the idea that modest victories may add up to a lot of money at the end of the day. The scalper establishes buy and sell goals and adheres to them. Scalping is a quick strategy. It is not uncommon for numerous deals to be completed in a matter of seconds.

Scalping is a great day-trading strategy for experienced traders who can make rapid judgments and act on them. Scalping strategy followers have the discipline to sell promptly if they see a price fall, therefore reducing losses. This is not a day-trading technique for you if you are easily distracted and lack razor-sharp focus.

6. News Trading

You may be aware that stocks react fast to news occurrences. A single poor earnings report can cause a stock’s price to plummet. An FDA approval for a new medication, on the other hand, might cause a stock to skyrocket. Day traders might profit from popular daily stories by keeping an eye on business news.

If there is unfavorable news, you may short the company throughout the day by “borrowing” shares from an investment firm and subsequently selling those borrowed shares. If the stock price falls as predicted, you repurchase the shares at the lower price and profit from the difference minus a commission payment. If the news is positive, you should go long or purchase the stock outright and sell the shares after there’s a price increase.


Although day trading has become a somewhat divisive topic, it may be a profitable method to make money. Day traders, both institutional and retail, play an essential role in the market by keeping it efficient and liquid.

The art of day trading is tough to perfect. It takes time, skill, and self-discipline. Many people who try it fail, however, the strategies and rules outlined above can assist you in developing a lucrative approach. You will find that you substantially enhance your chances of beating the odds with adequate practice and frequent performance evaluation. If you want to try your hand at day trading, be sure you only invest money that you can afford to lose.

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