Technical Analysis to show direction, price movement, support and resistance.
Risk To Reward when positions are entered. This allows the day trader to be wrong more times than they are right and still make a profit although day traders that are aware of technical analysis, stocks behavious and market conditions should be right 7 out of 10 times.
If you are not tright 7 out of 10 times your knowledge on the art of probability is flawed. 7 Out of 10 is the rule for the amount of picks that are correct and at the most a loss of 35% should be taken in your risk top reward.
Timing for position entry. This requires patience and swiftness for it takes a long time for the perfect conditions to arise for an entry point but it takes just a blink of an eye for it to be gone.
Scalping
Scalping is a common practice in day trading that involves quick exit points after an entry.
Fading
Fading involves shorting stocks after a rip (rapid moves upwards) because of a belief that a stock is overbought of overvalued and profit taking is about to occur. This is usually done after a little confirmation that the trend is over.
Daily Pivots
This is a method of profit taking based on a line related to the highs and lows. Good day traders catch a large amount between the highs, lows and the pivot for entry and exit points.
Momentum
When a general movement in a particular direction has been demonstrated and is further still supported by market conditions good day traders will wait for a pull back to pre-set moving averages and wait for a small bounce before entering. This is the safe player way to playing the day trading game and we highly recommend it as the best way for mental health too.
