Day traders generally use margin leverage; in the United States, Regulation T permits an initial maximum leverage of 2:1, but many brokers will permit 4:1 leverage as long as the leverage is reduced to 2:1 or less by the end of the trading day. In the United States, people who make more than 4 day trades per week are termed pattern day traders and are required to maintain $25,000 in equity in their accounts.[1] Since margin interest is typically only charged on overnight balances, the trader may pay no interest fees for the margin benefit, though still running the risk of a margin call. Margin interest rates are usually based on the broker's call.

Intraday traders always face inherent risks that exist in the stock markets. Price volatility and daily volume are a couple of factors that play an important role in the stocks picked for daily trading. Traders must not risk over two per cent of their total trading capital on a single trade to ensure the right risk management. So here are a few tips shared to make profit in intraday trading.
Swing traders usually go with the main trend of the stock. But some traders like to go against it and trade the counter trend instead. This is known as “fading,” but it has many other names: counter-trend trading, contrarian trading, and trading the fade. During an uptrend, you could take a bearish position near the swing high because you expect the stock to retrace and go back down. During a downtrend to trade the fade, you would buy shares near the swing low if you expect the stock to rebound and go back up.
With low barriers to entry in the trading world, the number of people trying their hands at day trading and other strategies such as scalping has increased. Newcomers to scalping need to make sure the trading style suits their personality because it requires a disciplined approach. Traders need to make quick decisions, spot opportunities and constantly monitor the screen. Those who are impatient and feel gratified by picking small successful trades are perfect for scalping.
Swing traders should select their candidates from the most actively traded stocks and ETFs that show a tendency to swing within broad well-defined channels. Virtually all trading platforms provide a function to enter channel lines on a price chart. The trader should keep a list of stocks and ETFs to monitor on a daily basis and become familiar with the price action of their selected candidates.
The intraday trading strategy to be used also depends upon the traders’ personal trading styles, along with being dependent on the market conditions. Some traders are very active and do many trades a day, with large position sizes, catching even the small price movements; while there are others who trade only on specific news events or only on tendencies that they have well researched.
By the same token, volume characteristics of a breakout also can have a shortened time frame. Rather than the 50-day moving average of volume as your threshold for heavy turnover, look to the volume of the shorter consolidation area for clues. If the breakout volume can surpass the recent activity, that can be a sufficient confirmation of strength.
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Following the 1987 stock market crash, the SEC adopted "Order Handling Rules" which required market makers to publish their best bid and ask on the NASDAQ.[7] Another reform made was the "Small-order execution system", or "SOES", which required market makers to buy or sell, immediately, small orders (up to 1000 shares) at the market maker's listed bid or ask. The design of the system gave rise to arbitrage by a small group of traders known as the "SOES bandits", who made sizable profits buying and selling small orders to market makers by anticipating price moves before they were reflected in the published inside bid/ask prices. The SOES system ultimately led to trading facilitated by software instead of market makers via ECNs.[8]
This combination of factors has made day trading in stocks and stock derivatives (such as ETFs) possible. The low commission rates allow an individual or small firm to make a large number of trades during a single day. The liquidity and small spreads provided by ECNs allow an individual to make near-instantaneous trades and to get favorable pricing.
Swing traders usually go with the main trend of the stock. But some traders like to go against it and trade the counter trend instead. This is known as “fading,” but it has many other names: counter-trend trading, contrarian trading, and trading the fade. During an uptrend, you could take a bearish position near the swing high because you expect the stock to retrace and go back down. During a downtrend to trade the fade, you would buy shares near the swing low if you expect the stock to rebound and go back up.
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The goal of swing trading is to capture a chunk of a potential price move. While some traders seek out volatile stocks with lots of movement, others may prefer more sedate stocks. In either case, swing trading is the process of identifying where an asset's price is likely to move next, entering a position, and then capturing a chunk of the profit from that move.
News provides the majority of opportunities from which day traders capitalize, so it is imperative to be the first to know when something significant happens. The typical trading room contains access to the Dow Jones Newswire, constant coverage of CNBC and other news organizations, and software that constantly analyzes news sources for important stories.  
Each type of trading has its advantages and disadvantages. The appeal of swing trading is that it provides plenty of opportunities to trade; the dollar risk per trade is lower than with trend trading because of closer stops; it provides greater profit opportunity per trade than day trading; and quick rewards provide emotional satisfaction. The downside of swing trading is that you must work hard all the time to manage trades; you are quite likely to miss major moves where huge profits can be made; and frequent trading results in higher commission costs.
First, find the lowest point of the pullback to determine the “stop out” point. If the stock declines lower than this point, you should exit the trade in order to limit losses. Then find highest point of the recent uptrend. This becomes the profit target. If the stock hits your target price or higher, you should consider exiting at least a portion of your position, to lock in some gains.
Volatility is the name of the day-trading game. Day traders rely heavily on a stock’s or market’s fluctuations to earn their profits. They like stocks that bounce around a lot throughout the day, whatever the cause: a good or bad earnings report, positive or negative news, or just general market sentiment. They also like highly liquid stocks, ones that allow them to move in and out of a position without much affecting the stock’s price.

The sheer volume of forex trading makes it attractive for day traders. There are multiple short-term opportunities in a trending currency pair, and an unrivalled level of liquidity to ensure opening and closing trades is quick and slick. More suited to technical analysis, there are other ways to trade foreign exchange. In addition, forex has no central market. This means traders can make trades six days a week, 24 hours a day. They present a great starting point for entry level or aspiring traders with full time jobs. Traders in Australia might be specifically interested in trading the AUD USD pair.
A scalp trader can look to make money in a variety of ways. One method is to have a set profit target amount per trade. This profit target should be relative to the price of the security and can range between .%1 - .25%. Another method is to track stocks breaking out to new intra-day highs or lows and utilizing Level II to capture as much profit as possible. This method requires an enormous amount of concentration and flawless order execution. Lastly, some scalp traders will follow the news and trade upcoming or current events that can cause increased volatility in a stock.

Following the 1987 stock market crash, the SEC adopted "Order Handling Rules" which required market makers to publish their best bid and ask on the NASDAQ.[7] Another reform made was the "Small-order execution system", or "SOES", which required market makers to buy or sell, immediately, small orders (up to 1000 shares) at the market maker's listed bid or ask. The design of the system gave rise to arbitrage by a small group of traders known as the "SOES bandits", who made sizable profits buying and selling small orders to market makers by anticipating price moves before they were reflected in the published inside bid/ask prices. The SOES system ultimately led to trading facilitated by software instead of market makers via ECNs.[8]
Aside from a risk/reward, the trader could also utilize other exit methods, such as waiting for the price to make a new low. With this method, an exit signal wasn't given until $216.46, when the price dropped below the prior pullback low. This method would have resulted in a profit of $23.76 per share. Thought of another way: a 12% profit in exchange for less than 3% risk. This swing trade took approximately two months.
Futures are a contract that match up a buyer and seller at a specific price, with the buyer agreeing to pay that price for the asset when the contract expires in the future. The seller is agreeing to deliver the asset, like oil for example, to the buyer when the contract expires. Day traders are never required to deliver or pay for the actual asset, because all positions are opened and closed within the day (no open obligations). Profits are losses are based on the prices the contract is opened and closed at.
Successful traders have to move fast, but they don't have to think fast. Why? Because they've developed a trading strategy in advance, along with the discipline to stick to that strategy. It is important to follow your formula closely rather than try to chase profits. Don't let your emotions get the best of you and abandon your strategy. There's a mantra among day traders: "Plan your trade and trade your plan."
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