What are the best day trading strategies for beginners?

Scalping is one of the most popular strategies when day trading for beginners. It involves exploiting small price gaps created by the bid-ask spread. Traders essentially close a position as soon as the trade becomes profitable, accumulating many small gains over the course of the trading day.

What is day trading?

Day trading is the act of buying and selling a financial instrument within the same day or even multiple times over the course of a day. Taking advantage of small price moves can be a lucrative game if it is played correctly. Yet, it can be dangerous for beginners and anyone else who doesn't adhere to a well-thought-out strategy.

How do day traders find and trade overbought financial instruments?

Find oversold and overbought financial instruments The trading strategies of day traders can usually be grouped into three categories: trend-following, breakout trading, and counter-trend trading. Whichever strategy you use, finding and trading overbought and oversold financial instruments can make a significant impact on your bottom line.

Is day trading a 'get rich quick' scheme?

Day trading strategies can be applied to most financial markets, though they are particularly prevalent in forex and stocks. And whilst day trading for beginners is often marketed as a ‘get rich quick’ scheme, it requires commitment, both in time and capital. Take professional day traders, for example.