6 Day Trading Strategies You Should Know

Day trading is a popular option for people who want to escape the rat-race and invest in a lifestyle career. 

What Is Day Trading?

Day trading in the traditional sense means people who buy and sell stocks, derivatives, or other financial instruments on the same day.

Learning how to day trade takes dedication and should be seen as a job. So let’s look at some of the strategies you can use.  

1. News Trading

This is probably the easiest to understand and carry out and requires the least amount of preparation. It’s as simple as having a mainline into the business news channels, understanding what news means for your particular stocks, and then getting in before anyone else.

2. Contrarian Trading

Many day traders believe that the markets are cyclical, and what goes up must come down and vice versa. So if they see a stock bottoming out, they will buy in to reap the next upswing benefit.

If you have carried out your research, you’ll know the underpriced companies based on their fundamentals. You’ll have a range of values that makes it attractive for your portfolio, and when it falls into that range, you buy. 

3. Range Trading

Pattern trading is about playing human psychology. If traders see a stock constantly rising, they get nervous, and if they see it falling, they see a bargain in the offing.  

4. Pattern Traders

This strategy has nothing to do with the stock’s value, but looks at the way the market is reacting. A technical indicator strategy looks at various aspects of stock performance and aims to buy in at the right sweet spot. 

5. Technical Indication

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