The Gap & Go! is one of those Intraday Trading Strategies that capitalises on the gappers. Gappers are the securities that show a gap between the prices on a chart-when there is an upward or downward movement in the price with no trading in between. Gaps can be created by various factors like earnings announcements, any other type of news releases or a change in the outlook of the analysts.
Fundamental analysis usually involves using a company's financial statements, discounted cash flow modeling and other tools to assess a company's intrinsic value. Scalpers may trade on news or events that drastically affect a company’s value immediately after its release. In some cases, they may also use short term changes in fundamental ratios to scalp trades but typically they focus mostly on the technical charts.

Many swing traders assess trades on a risk/reward basis. By analyzing the chart of an asset they determine where they will enter, where they will place a stop loss, and then anticipate where they can get out with a profit. If they are risking $1 per share on a setup that could reasonably produce a $3 gain, that is a favorable risk/reward. On the other hand, risking $1 to make $1 or only make $0.75 isn't as favorable.

It needs sheer dedication, hard work, patience, quick wit and immense knowledge to be successful in intraday trading. Successful intraday trading involves 90% waiting and 10% execution. So, yes, it can make a trader rich in a relatively short period of time if the correct processes are followed, and yes, it is possible to hold on to the profits in the long-term if the correct strategies are followed.

You have to see for yourself whether the pros outweigh the cons, and vice-versa. Technological resources can also enhance your trading. To expedite your order placement, with Admiral Markets, you can access an enhanced version of the 1-click trading terminal via MetaTrader 4 Supreme Edition. If you are interested in other strategies, you can check out our Best Forex Trading Strategies That Work article.

The data and analysis contained herein are provided "as is" and without warranty of any kind, either expressed or implied. Fidelity is not adopting, making a recommendation for or endorsing any trading or investment strategy or particular security. All opinions expressed herein are subject to change without notice, and you should always obtain current information and perform due diligence before trading. Consider that the provider may modify the methods it uses to evaluate investment opportunities from time to time, that model results may not impute or show the compounded adverse effect of transaction costs or management fees or reflect actual investment results, and that investment models are necessarily constructed with the benefit of hindsight. For this and for many other reasons, model results are not a guarantee of future results. The securities mentioned in this document may not be eligible for sale in some states or countries, nor be suitable for all types of investors; their value and the income they produce may fluctuate and/or be adversely affected by exchange rates, interest rates or other factors.


Most of our students adopt either my Momentum or Reversal Day Trading Strategies. Once you choose the one that is a good match for your skill level, your risk management tolerance, and the time of day you plan to trade, you are ready to get started. Students in our Day Trading Course can download our written trading plan documents and I’m able to actually oversee them while they are trading.
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 data and analysis contained herein are provided "as is" and without warranty of any kind, either expressed or implied. Fidelity is not adopting, making a recommendation for or endorsing any trading or investment strategy or particular security. All opinions expressed herein are subject to change without notice, and you should always obtain current information and perform due diligence before trading. Consider that the provider may modify the methods it uses to evaluate investment opportunities from time to time, that model results may not impute or show the compounded adverse effect of transaction costs or management fees or reflect actual investment results, and that investment models are necessarily constructed with the benefit of hindsight. For this and for many other reasons, model results are not a guarantee of future results. The securities mentioned in this document may not be eligible for sale in some states or countries, nor be suitable for all types of investors; their value and the income they produce may fluctuate and/or be adversely affected by exchange rates, interest rates or other factors.
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.  

The difference between the profit target and the entry point is the approximate reward of the trade. The difference between the entry point and the stop out point is the approximate risk.When determining whether it’s worthwhile to enter a swing trade, consider using two-to-one as a minimum reward-to-risk ratio. Your potential profit should be at least twice as much as your potential loss. If the ratio is higher than that, the trade is considered better; if it’s lower it’s worse.

You have to see for yourself whether the pros outweigh the cons, and vice-versa. Technological resources can also enhance your trading. To expedite your order placement, with Admiral Markets, you can access an enhanced version of the 1-click trading terminal via MetaTrader 4 Supreme Edition. If you are interested in other strategies, you can check out our Best Forex Trading Strategies That Work article.

Buying on margin can greatly increase your gains or losses. Brokerages usually allow a bigger margin percentage for a day trading account but reduce the amount of margin available for positions held overnight. Normally a day trading account must have a minimum of $25,000 and can buy on margin at a rate of 4 to 1 giving you $100,000 in buying power, which is called day trader buying power. That number drops to 2 to 1 for positions held overnight, which can be called overnight margin buying power. That means that if you have 100% of your margin being used during the day, you must exit at least half of your positions before the close of the trading day.


Trading stocks intraday offers different opportunities than a traditional ‘buy and hold’ strategy. Speculating on stock prices via CFDs or spread betting for example, mean traders can profit from falling prices too. Margin or leverage also reduce the capital required to open a position. So you can take a position on the latest news release, product announcement or financial report – as well as technical indicators.
Tactics used to take advantage of the uptrend can also be applied to trade the downtrend. Again, since it’s very difficult to predict exactly how long a bear rally, or “counter trend” may last, you should enter a bearish swing trade only after it seems that the stock has continued downwards. To do this, examine the bear rally very closely. If the stock heads lower than the counter trend’s previous day’s low, the swing trader could enter a bearish position.

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. 
Relative Strength Index (RSI) – Used to compare gains and losses over a specific period, it will measure the speed and change of the price movements of a security. In other words, it gives an evaluation of the strength of a security’s recent price performance. Day trading tip – this index will help you identify oversold and overbought conditions in the trading of an asset, enabling you to steer clear of potential pitfalls.
Identify a stock or ETF where the weekly trend is up and the bottoms on the daily bar chart tend to be short and sharp. Analyze how the stock or ETF has behaved since the beginning of the trend. If it has returned to the moving average 3 times and penetrated it by an average of 1.5% of its price, place a buy order approximately 1% of the instrument's price below the moving average, a little more shallow than the previous declines.

You need to understand basic day trading terminology & concepts to build your foundation. You can follow me on Youtube to get free education! Join the community of thousands of followers on YouTube and begin studying the free content we post on a daily basis. This is the beginning of your education. You need to study the markets, analyze charts, and learn the strategies professional traders are using every day.

This article is going to go in-depth about a key swing trading technique on daily charts. While this may be considered advanced swing trading, this strategy is suitable for all investors. It is perfect for home study. We will tell you how to do proper technical analysis and show you when to enter the trade and when to exit the trade. We will do this by teaching you how to set the right profit target.

Day traders use only risk capital which they can afford to lose. Not only does this protect them from financial ruin, but it also helps eliminate emotion from their trading. A large amount of capital is often necessary to capitalize effectively on intraday price movements. Having access to a margin account is also key, since volatile swings can incur margin calls on short notice.
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