Day Trading Strategies That Actually Work

Day trading requires precision, discipline, and proven strategies. This comprehensive guide covers the most effective day trading techniques used by professional traders.

1. Momentum Trading Strategy

Momentum trading involves buying stocks that are moving strongly in one direction on high volume. Look for stocks breaking out of consolidation patterns with strong volume confirmation.

2. Gap Trading Strategy

Gap trading focuses on stocks that open significantly higher or lower than the previous day's close. Trade the gap fill or continuation based on volume and market sentiment.

3. Scalping Strategy

Scalping involves making many small profits throughout the day by holding positions for minutes. Focus on liquid stocks with tight spreads and consistent price action.

Risk Management for Day Trading

• Never risk more than 1-2% of your account per trade
• Set stop losses before entering any position
• Use position sizing based on volatility
• Have a maximum daily loss limit

Essential Day Trading Tools

Use TradeCraft's momentum screener to find high-volume breakout opportunities. Our trade plan generator helps you establish proper entry, exit, and risk management rules.