Day Trading

Day Trading Strategy

If you are a day trader, your position size is likely larger due to the fact you are looking for a smaller move with your short timeframe. Keeping a tight stop is extremely important when trading larger size, as a day trading strategy gives stocks multiple opportunities to work. For day trading, the strategy is rather simple:

• Always keep your profit objective at least 3 times greater than what you are willing to risk.
• Allow no more than a 1% move against you from your entry point. Ideally, you are in the trade beyond the trend line and out of the trade below it. You can always get back into the trade if the stock returns to the buy point.
• If a stock gaps beyond a technical trigger price, the original trade plan is negated for a day trade so a new plan should be made.
• If the futures (Nasdaq and S&P e-minis) make an intermediate lower high intraday (or higher low when trading the short side), exit half of your position. This implies a weakening market and can make it tougher for open positions to continue working.
• If your stock hits a new low for the day (long trades) or new high for the day if you are short, exit the position. A day trade is intended for initial moves, so there is no purpose in widening stops to accommodate a stock moving in the wrong direction. Get out if the stock breaks a low (or high if short) as you can reenter the trade if it triggers again.
• Once momentum fades and buyers are thinning out, take your profit. This can be done by carefully monitoring the intraday chart and the time & sales window for fading momentum.
Our methods
The only way to win the stock market game is to buy stocks when other people are selling and to sell stocks when other people are buying.

Here, you can find new short-term trading strategies to play against the crowd. We are trying to buy or sell stocks one day before the other people do.

Based on the same list but stock selection method is different. The number of trades is less than for basic strategy but return per trade is larger. Quarterly return of this strategy can be lower than for the basic strategy because of smaller number of trades but risk/return ratio is smaller.
Opposite to the Basic Strategy. Based of the list of potentially bearish stocks. A trader holds stock 2 days.
Using Basic and Sell-Short strategies simultaneously.
Based on a special list of bullish stocks. To buy or sell stocks one can use limit or market orders which can be placed before the market opening.