Head over to websites like Reddit and you’ll see many trading dummies who will often fall at the strategy hurdle, taking the first momentum examples they see and losing money left, right and center. Savvy traders will employ day trading strategies in forex, grain futures and anything else they’re trading in, to give them an edge over the market. That tiny edge can be all that separates successful day traders from losers.

The most significant benefit of intraday trading is that positions are not affected by the possibility of negative overnight news that has the potential to impact the price of securities materially. Such news includes vital economic and earnings reports, as well as broker upgrades and downgrades that occur either before the market opens or after the market closes.
These developments heralded the appearance of "market makers": the NASDAQ equivalent of a NYSE specialist. A market maker has an inventory of stocks to buy and sell, and simultaneously offers to buy and sell the same stock. Obviously, it will offer to sell stock at a higher price than the price at which it offers to buy. This difference is known as the "spread". The market maker is indifferent as to whether the stock goes up or down, it simply tries to constantly buy for less than it sells. A persistent trend in one direction will result in a loss for the market maker, but the strategy is overall positive (otherwise they would exit the business). Today there are about 500 firms who participate as market makers on ECNs, each generally making a market in four to forty different stocks. Without any legal obligations, market makers were free to offer smaller spreads on electronic communication networks than on the NASDAQ. A small investor might have to pay a $0.25 spread (e.g. he might have to pay $10.50 to buy a share of stock but could only get $10.25 for selling it), while an institution would only pay a $0.05 spread (buying at $10.40 and selling at $10.35).
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.
Day trading poses a number of hurdles. Mainly, each trading day is slightly different. Traders need a method that works in nearly all market conditions. That doesn't mean a day trader will win every day. On the contrary, even with a great method, there still may be several losing days a month. Winning every trade or every day isn't important, it is winning over the course of each week and month that matters.
These developments heralded the appearance of "market makers": the NASDAQ equivalent of a NYSE specialist. A market maker has an inventory of stocks to buy and sell, and simultaneously offers to buy and sell the same stock. Obviously, it will offer to sell stock at a higher price than the price at which it offers to buy. This difference is known as the "spread". The market maker is indifferent as to whether the stock goes up or down, it simply tries to constantly buy for less than it sells. A persistent trend in one direction will result in a loss for the market maker, but the strategy is overall positive (otherwise they would exit the business). Today there are about 500 firms who participate as market makers on ECNs, each generally making a market in four to forty different stocks. Without any legal obligations, market makers were free to offer smaller spreads on electronic communication networks than on the NASDAQ. A small investor might have to pay a $0.25 spread (e.g. he might have to pay $10.50 to buy a share of stock but could only get $10.25 for selling it), while an institution would only pay a $0.05 spread (buying at $10.40 and selling at $10.35).
The systems by which stocks are traded have also evolved, the second half of the twentieth century having seen the advent of electronic communication networks (ECNs). These are essentially large proprietary computer networks on which brokers can list a certain amount of securities to sell at a certain price (the asking price or "ask") or offer to buy a certain amount of securities at a certain price (the "bid").
Day traders are attuned to events that cause short-term market moves. Trading the news is a popular technique. Scheduled announcements such as economic statistics, corporate earnings or interest rates are subject to market expectations and market psychology. Markets react when those expectations are not met or are exceeded, usually with sudden, significant moves, which can benefit day traders.
Swing trading refers to the practice of trying to profit from market swings of a minimum of one day and as long as several weeks. In contrast to swing traders, day traders usually are in and out of the market in one day and trend traders often hold positions for several months. So, in terms of length of holding a trade, swing traders are in between day traders and trend traders.

Although day trading has become somewhat of a controversial phenomenon, it can be a viable way to earn profit. Day traders, both institutional and individual, play an important role in the marketplace by keeping the markets efficient and liquid. While popular among inexperienced traders, it should be left primarily to those with the skills and resources needed to succeed.
Day traders are attuned to events that cause short-term market moves. Trading the news is a popular technique. Scheduled announcements such as economic statistics, corporate earnings or interest rates are subject to market expectations and market psychology. Markets react when those expectations are not met or are exceeded, usually with sudden, significant moves, which can benefit day traders.
The volume indicator could be interpreted as the “fuel tank of the major trading machine.” Some argue that the volume indicator cannot be used with trading in the forex market. This is because there is no “central exchange” so how can it be read effectively? Another argument is that the volume that you see for Forex is the “Tick” volume that occurs. This means you are not seeing the entire volume that is being traded at the time like you would with stocks.

A pure scalper will make a number of trades each day — perhaps in the hundreds. A scalper will mostly utilize one-minute charts since the time frame is small, and he or she needs to see the setups as they shape up in as close to real time as possible. Supporting systems such as Direct Access Trading (DAT) and Level 2 quotations are essential for this type of trading. Automatic instant execution of orders is crucial to a scalper, so a direct-access broker is the preferred weapon of choice.
This often means trading shares of companies that have just released breaking news, reported earnings, or have another fundamental catalyst that is resulting in above average retail interest. The type of stocks a day trader will focus on are typically much different from what a long term investor would look for. Day traders acknowledge the high levels of risk associated with trading volatile markets and they mitigate those risks by holding positions for very short periods of time.
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 part is all up to you. There is no "line crossing," "arrow appearing" or "a small voice telling you to buy now!" You have to understand a little bit about how the price action works before you decide on your entry. Using our example, the Volume indicator shot up drastically meaning that traders are getting in on the action and thus driving the price upwards!
Trendline breakout candle close with STOCH. works very nice on 15min & above timeframe , I usually trade on daily charts so only once a day for 30 min.- 1hr.I need to watch the DAILY CANDLE when the previous day candle closes , also it enables to enter mkt.at the beginning of a rally generating massive pips , but the most imp.part is the Trendline breakout with closing of the previous candle.This filtration false signals of STOCH.with price-action.GOD BLESS U.
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.

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.


The basic strategy of news playing is to buy a stock which has just announced good news, or short sell on bad news. Such events provide enormous volatility in a stock and therefore the greatest chance for quick profits (or losses). Determining whether news is "good" or "bad" must be determined by the price action of the stock, because the market reaction may not match the tone of the news itself. This is because rumors or estimates of the event (like those issued by market and industry analysts) will already have been circulated before the official release, causing prices to move in anticipation. The price movement caused by the official news will therefore be determined by how good the news is relative to the market's expectations, not how good it is in absolute terms.

Risk management - Rather than looking for one big trade, the way a trend trader might, the scalper looks for hundreds of small profits throughout the day. In this process the scalper might also take hundreds of small losses during the same time period. For this reason a scalper must have very strict risk management never allowing a loss to accumulate.
This material does not contain and should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments. Please note that such trading analysis is not a reliable indicator for any current or future performance, as circumstances may change over time. Before making any investment decisions, you should seek advice from independent financial advisors to ensure you understand the risks.

Liquidity - The liquidity of a market affects the performance of scalping. Each product within the market receives different spread, due to popularity differentials. The more liquid the markets and the products are, the tighter the spreads are. Some scalpers like to trade in a more liquid market since they can move in and out of large positions easily without adverse market impact. Other scalpers like to trade in less liquid markets, which typically have significantly larger bid-ask spreads. Whereas a scalper in a highly liquid market (for example, a market maintaining a one-penny spread) may take 10,000 shares to make a 3 cent gain ($300), a scalper in an illiquid market (for example, a market with a 25 cent spread) may take 500 shares for a 60 cent gain ($300). While there is theoretically more profit potential in a liquid market, it is also a "poker game" with many more professional players which can make it more difficult to anticipate future price action.
ECN/Level 2 quotes: ECNs, or electronic communication networks, are computer-based systems that display the best available bid and ask quotes from multiple market participants and then automatically match and execute orders. Level 2 is a subscription-based service that provides real-time access to the Nasdaq order book composed of price quotes from market makers registering every Nasdaq-listed and OTC Bulletin Board security. Together, they can give you a sense of orders being executed in real time.
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