There are a number of day trading styles, but here we group them into 4.
1. Scalpers
Some traders who are very active, catching small price movements with large position sizes are called scalpers. They often make dozens of trades a day. But scalpers need to be very focused on the stock they are targeting, and enter once it reaches their target price, just 1 sec of hesitation or distraction will make them miss the entry point.
2. Swing Trader
Trying to capture bigger price movements, letting their gains continue while running the risk of a price reversal. These trades typically last longer than a scalper's trades but should have a clear close-out price in place. However, this kind of trades usually move faster and more volatile, also, the size of their holding will be lesser than scalper’s trades.
3. Very technical trader
Most day traders use price charts to decide when to execute trades. Many also rely on Level II trading data (highest bid price, bid size, lowest ask price and ask size), which offer greater insights into the level of trading interest.
4. Utilisation of news
Some day traders may focus on specific news events or statistic tendencies they have researched. Counters with news often kena goreng. Strangely, in Malaysia, stocks with good news are more likely to move downward as people are selling on news, taking profit after the price is high.
Stock Prince
Disclaimer: All information shared here are strictly for educational purpose only. There is no buy or sell recommendation for any counters mentioned in this channel. We hold no responsibility for your trades. You should make your informed decision by consulting your licensed remisier or investment advisor before making any investment decision.
