Day Trading Strategies For Beginners – Finding Price Targets

Day trading refers to entering and exiting a trade within the same trading day. Sometimes this can last a few seconds, and sometimes it can last a few hours. Day trading has become quite popular among many people, and online stock brokers are finding themselves busier with the joining of newbie traders. Here are a few strategies for beginners for finding price targets.

Day Trading Strategy #1 – Scalping

Scalping is one of the most popular day trading strategies. It is a process which involves selling almost immediately after you have attained a profit from that trade. The price target in this situation is just after you’ve attained a profit. This type of strategy generally involves taking very small profits among many trades. Some scalpers can trade upwards of 100 trades per day.

Day Trading Strategy #2 – Fading

Fading is a strategy in which the trader shorts a stock after quick upward moves in a stock. The profit target here is when buyers come back into the stock, which starts to drive the price of the stock lower. In this situation, technical indicators will start showing that the stock is overbought, and ready for a price trend reversal.

Some buyers who purchased the stock early on when the price was lower may begin to take profits at this point. Some buyers who bought too late may begin to get scared off at the notion that the price might start to drop.

Day Trading Strategy #3 – Daily Pivots

Day traders who use daily pivots as their strategy will focus on stocks with high volatility. They are looking for major price movements to take advantage of. The profit target in this situation is to take profits at a sign of reversal. These traders will try to buy at the low of the day, and sell at the high of the day, thus taking in profits.

Day Trading Strategy #4 – Momentum

Momentum trading depends on following news releases, or trading strong moves in a stock supported by high volume. The profit targets in this situation are when volume starts to fade, and weak bars or candlesticks show signs of reversal.

If you’re a beginner, start with small lots of shares, costing you no more than 1% of your total trading capital. Try a few different strategies to see which one fits your personality, and which you think you would enjoy.

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