What is Day Trading?

Posted On: 23 Dec, 2017 07:26:11

Day Trading is when you buy and sell a stock the same day. Day traders are looking to take a position in a stock showing signs of momentum. The first signs of momentum are a increase in volume and a gap up the stock’s price. We also want to focus on stocks with low floats and the news surrounding the stock. Use this criteria to help you produce a list of stocks to watch for the day.

You plan your entry into a stock based of how the stock is moving. To determine the best time for entry day traders like to examine charts on 1, 5, 15 minute intervals. Watching stock charts on different time intervals allows you to identify the best possible time to buy and sell.

Sometimes a stock’s momentum last for multiple days. Any day trade that you decided to hold for more than a day are considered swing trades. Swing trades are another way to make money in the stock market.

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