One-day trade is the act of purchasing and selling financial instruments in a single day or several times throughout the day. When done with the right strategies, this can be quite profitable.
But it can be a little difficult for you if you are a beginner. So, to help you out, we are going to list a few one-day strategies.
1 Scalping Strategy
The idea behind this is small wins can cause you to accumulate a large sum of money at the end of the day. With scalper strategy, you can buy and sell sticks and targets to set levels. It is one of the fast one day trading strategies. By using this, you can make many trades in a single day.
It is for traders who can make quick decisions and don’t dwell on something. Scalping strategy followers are disciplined to sell as soon as they see a decline in price. This minimizes the losses.
2 Momentum Trading
In this strategy, you will have to pounce on a stock whose price is increasing. This one day stock is difficult to find.
In case you are into this one day stock trading strategy, you should look for these qualities.
Stock movement of 30%-40%
A serious price movement is caused by catalysts, such as a discovery of a new drug by a drug company or sensational news that is going to be secured by a big farm.
Smaller stocks that trade faster because of the truncated number of incredible shares and the float has to be done under 100 million shares.
3 Breakout Trading
A breakout trade will take place when the stock prices go up the former price. However, it isn’t as easy as checking out a chart, identifying resistance, and purchasing after a breakout. In this strategy, you have to keep track of the stock trading volume level or the number of shares changing hands.
Usually, breakout trading is sustainable at a new high price than the breakouts with less volume. A low volume breakout hardly goes below former resistance levels. Thus, it might be difficult to make a profit.
4 Bottom Line
Even though trading has become a little controversial, it can be an effective means to earn profit. Day traders play a crucial role in the marketplace. They play a role in keeping the markets liquid and efficient. Although one day trading share market is quite popular among inexperienced traders, it is better left to skilled traders.
Note: Please do not invest money or assets in the financial markets that you cannot afford to lose. This article should not be construed to be investment advice and is for information purposes only.