Strategies For Daytrading by Jacob Singer
These strategies could improve your daytrading.
Trading strategies that fall under the definition
of daytrading can be confusing, because there
are really three types of daytrading: intraday
trading, end-of-day trading, and daytrading.
The three kinds are similar, but there are clear
1. Intraday trading is when a trader makes a large number
of trades in a single day, taking a one- or two-point profit
and trading both short and long positions as the market
changes direction during the day. The objective is to have
all of these small trades add up to a good profit at the end
of the day. Positions are always closed out before the
market closes. This type of trading can only be done
when commissions charged per trade are very small.
2. End-of-day trading occurs when a trader takes a position
in the morning as the market opens, and once a fill
is received, places a target level to close the position.
The trader places a stop-loss in case the position moves
against him or her, and closes all open positions at the
end of the day.
3. Daytrading is similar to end-of-day trading, but positions
can be held overnight. This is because the first 15
to 20 minutes of trading in the morning usually follow
the trend of the last 15 to 20 minutes before the previous
day’s close. The daytrader takes a position during the
day, planning to close out either that day or the follow-
ing one, whenever his trading target is met. He will
watch the position over the one or two days, all the while
adjusting his stop-loss and allowing his profits to ride.