Day Trading Strategies

Automated Day Trading

July 16, 2011 Day Trading Strategies

Automated Day Trading Definition Automated day trading is when a trading system places orders in the market without any human interaction.  These systems work best for traders who are unable to manage their emotions and or have poor money management techniques.  With a number of direct access brokers providing automated trading, it is no longer [...]

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Day Trading Money Management

June 23, 2011 Day Trading Strategies

Day Trading Money Management Day trading as a business can be very profitable. It is probably the safest form of investing, as you are focusing on a small number of positions, you are not holding any positions overnight and you are able to enter and exit trades with pinpoint accuracy. However, many day traders find [...]

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Gap Pullback Buy

June 13, 2011 Day Trading Strategies

Our next strategy, the gap pullback buy, is one of my favorite setups.  It allows us to let the morning action play out and enter into a trade with a strong setup and relatively low amounts of risk. Trading Characteristics of a Gap Pullback Buy The gap pullback buy is predicated on the concept that [...]

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Symmetrical Triangles & Day Trading

June 12, 2011 Day Trading Strategies

Day trading with the symmetrical triangle formation is a great way to take advantage of late day breakouts.  Some traders will look for symmetrical triangles on a very short timeframe (ie. 30 minutes); however, I like to see this pattern develop over a few hours after a strong morning advance.  Symmetrical triangles are considered to [...]

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Early Morning Range Breakout

June 12, 2011 Day Trading Strategies

The first morning trading strategy we will discuss is a very simple, commonly used, and reliable trading pattern; the early morning range breakout. This strategy allows traders to take advantage of the violent whipsaw action that can result from the flurry of buy and sell orders that come into the market on the open, up until [...]

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Morning Reversal Gap Fill

June 12, 2011 Day Trading Strategies

The morning reversal gap fill is another great trading setup for the first hour of trading, preferably within the first 20 to 30 minutes of trading. This strategy is a play on a shift in market momentum and is directly tied to market manipulation by the market maker on the open. As we discussed in our introduction to [...]

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