Types of day trading
Mainly there
are two types of day traders.
1.Scalp trading ( small profit
takers)
2.Momentum trading.
1. Scalp trader
These type of traders do multiple trades in a day with
very small profits.
They do buying and selling on various
stocks with very small profits.
In this type of trading
there is less risk as compared to momentum trading.
2. Momentum
trading
In this, trader buys the stock and wait
for the target to hit inserting stop loss as a precaution if in case market
goes against your trade.
In other
words he waits for good profit percentage and not for small
profit.
This type of trading is risky because market
directions can reverse at any time without any intimation so in
such situations your stop loss may trigger.
So as
conclusion, if you don’t want to take risk then one should go for scalp trading
where you will get good
profit also.
If you are very sure about market
direction and your stock direction then you can go for momentum
trading.
Chapters
Types of Intraday Trading
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