Due to the increased leverage and quick returns, day trading can be extremely profitable. The downside is that if done incorrectly, it can also be extremely unprofitable. Due to the high volatility of day trading, some people have labeled Day Traders as gamblers or adrenaline junkies. However, many people make a very consistent and comfortable living from day trading. Some even make millions of dollars each year.
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.
Software and gimmicky products that promise riches overnight typically have a very short shelf life. They may work for a little while, but ultimately they will fail you unless you know how to make adjustments to the software yourself. Instead of getting suckered into trading product scams you're much better off spending your time and money on your own education.
Individual traders often manage other people's money or simply trade with their own. Few of them have access to a trading desk, but they often have strong ties to a brokerage (due to the large amounts they spend on commissions) and access to other resources. However, the limited scope of these resources prevents them from competing directly with institutional day traders. Instead, they are forced to take more risks. Individual traders typically day trade using technical analysis and swing trades—combined with some leverage—to generate adequate profits on such small price movements in highly liquid stocks.
Range trading, or range-bound trading, is a trading style in which stocks are watched that have either been rising off a support price or falling off a resistance price. That is, every time the stock hits a high, it falls back to the low, and vice versa. Such a stock is said to be "trading in a range", which is the opposite of trending.[13] The range trader therefore buys the stock at or near the low price, and sells (and possibly short sells) at the high. A related approach to range trading is looking for moves outside of an established range, called a breakout (price moves up) or a breakdown (price moves down), and assume that once the range has been broken prices will continue in that direction for some time.
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.
Because scalpers focus on short-term positions with low-profit margins, the best scalping strategies (such as the Triple S strategy mentioned below) require some leverage. It's recommended that scalpers start with a large amount of capital. Opening and closing larger positions allow you to reduce the marginal costs of trading and maximize potential gains.
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The problem most new traders make is that they don't practice a strategy in a demo account, for several months or more, before risking real capital. Therefore, they have no idea how a strategy works, and how they need to adjust it when market conditions change. The demo accounts serves as a testing ground, where new traders can test out ideas, see what works and hone trading psychological skills (such as patience, discipline and focus).
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.
This is usually reserved for traders working for larger institutions or those who manage large amounts of money. The dealing desk provides these traders with instantaneous order executions, which are particularly important when sharp price movements occur. For example, when an acquisition is announced, day traders looking at merger arbitrage can place their orders before the rest of the market is able to take advantage of the price differential.

There are two primary divisions of professional day traders: those who work alone and/or those who work for a larger institution. Most day traders who trade for a living work for a large institution. These traders have an advantage because they have access to a direct line, a trading desk, large amounts of capital and leverage, expensive analytical software, and much more. These traders are typically looking for easy profits that can be made from arbitrage opportunities and news events, and these resources allow them to capitalize on these less risky day trades before individual traders can react.

Disclaimer: Trading carries a high level of risk, and may not be suitable for all investors. Before deciding to invest you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.


Another risk of swing trading is that sudden reversals can create losing positions. Because you are not trading all throughout the day, it can be easy to be caught off guard if price trends do not play out as planned. To decrease the risk of this happening, we recommend issuing stop orders with every new position. Stop orders can help you “lock-in” your gains and can also help you cut your losses.
The financial vehicle of the moment. Spectacular growth has seen cryptos attract many new investors. Brokers are also ensuring retail access to these markets is less complicated. Taking a view on any of these new blockchain based currencies is being simplified all the time. Barriers to entry are now almost nil, so whether you are a bull or a bear, now is the time.

But there is an added risk with the shorter time frame. A wide spread between the bid, the ask and commissions can eat too large a portion of your profits. Swing traders can struggle with this too, but the effect is amplified for the day trader. Day traders can find themselves doing all the work, and the market makers and brokers reap the benefits.


The problem most new traders make is that they don't practice a strategy in a demo account, for several months or more, before risking real capital. Therefore, they have no idea how a strategy works, and how they need to adjust it when market conditions change. The demo accounts serves as a testing ground, where new traders can test out ideas, see what works and hone trading psychological skills (such as patience, discipline and focus).
Frequency and costs: A novice scalper has to make sure to keep costs in mind while making trades. Scalping involves numerous trades — as many as hundreds during a trading session. Frequent buying and selling is bound to be costly in terms of commissions, which can shrink the profit. This makes it crucial to choose the right online broker. The broker should not only provide requisites like direct access to markets, but also competitive commissions. And remember, not all brokers allow scalping. 
Recent reports show a surge in the number of day trading beginners. But unlike the short term trading of the past, today’s traders are smarter and better informed, in part due to trader academies, courses, and resources, including trading apps. Daytrading.com exists to help novice traders get educated and avoid mistakes while learning how to day trade.
Solid article breaking down the two main strategies for swing trading. I stumbled on swing trading about 5-6 years ago and didn't even actually know what it was called at the time! For the last 5 years, I've been primarily trading postive reversals using the Swing Low method you describe here. After all, we've been in this amazing bull market for the last 8 years, so why fight the overall trend? One key point I would say is it is important to find a method that fit's your personality. I used attempt swing trades based upon breakouts. I found that I feared missing out on a large move, so I would pile into a trade with little thought about the risk vs. reward. I would chase prices higher. I also chased different trading methods, jumping from one to another. Long story short...it didn't work. :-) I described after much trial & error, I finally settled on a trading method that fit my personality. I have found that as a trader, you answer to yourself. Find a trading met
The ability for individuals to day trade coincided with the extreme bull market in technological issues from 1997 to early 2000, known as the dot-com bubble. From 1997 to 2000, the NASDAQ rose from 1200 to 5000. Many naive investors with little market experience made huge profits buying these stocks in the morning and selling them in the afternoon, at 400% margin rates.
To offset this, day traders are often offered the "opportunity" to leverage their portfolios with more margin, four times the buying power rather than double. Taking larger leveraged positions can increase percentage gains to offset costs. The problem is that no one is right all the time. A lack of focus, discipline, or just plain bad luck can lead to a trade that goes against you in a big way. A bad trade, or string of bad trades, can blow up your account, where the loss to the portfolio is so great the chances of recovery are slim. For a swing trader, a string of losses or a big loss can still have a dramatic effect, but the lower leverage reduces the likelihood that the results wipe out your portfolio.
Smaller moves, easier to obtain - A change in price results from imbalance of buying and selling powers. Most of the time within a day, prices stay stable, moving within a small range. This means neither buying nor selling power control the situation. There are only a few times which price moves towards one direction, i.e. either buying or selling power controls the situation. It requires bigger imbalances for bigger price changes. It is what scalpers look for - capturing smaller moves which happen most of the time, as opposed to larger ones.

Based on particular setups, any trading system can be used for the purposes of scalping. In this regard, scalping can be seen as a kind of risk management method. Basically, any trade can be turned into a scalp by taking a profit near the 1:1 risk/reward ratio. This means that the size of the profit taken equals the size of a stop dictated by the setup. If, for instance, a trader enters his or her position for a scalp trade at $20 with an initial stop at $19.90, the risk is 10 cents. This means a 1:1 risk/reward ratio will be reached at $20.10.


Unlike a number of day trading strategies where you can have a win/loss ratio of less than 50% and still make money, scalp traders must have a high win/loss ratio. This is due to the fact that losing and winning trades are generally equal in size. The necessity of being right is the primary factor scalp trading is such a challenging method of making money in the market.
When there are higher low points along with stable high points, this suggests to traders that it is undergoing a period of consolidation. Consolidation usually takes place before a major price swing (which in this case, would be negative). Learning about triangle trading and other geometric trading strategies will make you a much better swing trader.

Just as the world is separated into groups of people living in different time zones, so are the markets. If you start trading on the Cac 40 at 11:00 ET, you might find you’ve missed the best entry signals of the day already, minimising your potential end of day profit. So, if you want to be at the top, you may have to seriously adjust your working hours.

Swing, or range, trading Traders find a stock that tends to bounce around between a low and a high price, called a "range bound" stock, and they buy when it nears the low and sell when it nears the high. They may also sell short when the stock reaches the high point, trying to profit as the stock falls to the low and then close out the short position.
Scalping is a fast-paced activity for nimble traders. It requires precision timing and execution. Scalpers use day trading buying power of four to one margin to maximize profits with the most shares in the shortest amount of holding time. This requires focusing on the smaller time frame interval charts such as the one-minute and five-minute candlestick charts. Momentum indicators such as stochastic, moving average convergence divergence (MACD) and relative strength index (RSI) are commonly used. Price chart indicators such as moving averages, Bollinger bands and pivot points are used as reference points for price support and resistance levels.
For most students, once his or her accuracy has improved the next step is increasing positions sizes to maximize profits. If you’ve been trading at 65% success with 1:1 or 2:1 profit loss ratios for at least a couple of months you should be starting to feel pretty confident. Now it’s time to increase your position sizes. Since you’ve been working with a $100 max loss, you’ve probably rarely exceeded 2000 shares.
Many professional money managers and financial advisors shy away from day trading arguing that, in most cases, the reward does not justify the risk. Conversely, those who do day trade insist there is profit to be made. Day trading profitably is possible, but the success rate is inherently lower because of the complexity and necessary risk of day trading in conjunction with the related scams. Moreover, economists and financial practitioners alike argue that over long time periods, active trading strategies tend to underperform a more basic passive index strategy, especially after fees and taxes are taken into account.
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