What Is Your Day Trading Style?

Day traders buy and sell stocks throughout the day with the goal that the price of the stocks will fluctuate in value during the day, allowing them to earn quick profits. Day traders will hold a stock anywhere from several seconds to several hours, but always sell all of those stocks before the close of each day. The objective of day trading is to get in and out of any particular stock quickly for a profit amounting anywhere from a few cents to several points per share on an intra-day basis.

There are a number of trading styles people use when doing short term trading.

"Scalpers" rapidly and repeatedly buy and sell a large volume of stocks within seconds or minutes. Their objective is to earn a small per share profit on each transaction with minimal risk.

"Momentum" traders identify and trade stocks that are in a moving pattern during the day in an attempt to buy these stocks at bottoms and sell at tops.

We will continue in our next post with more day trading style descriptions traders use to maximize their money.