Day Trading Basics

• Buying and selling stocks within the same day
• Trying to capitalize on short-term moves in price
• Use brokerage account as leverage to scalp price action
• Requires $25,000 to avoid the PDT rule
• Technical analysis is the primary focus over fundamental analysis
• Scan for momentum stocks with high volume and a news catalyst
• Look for daily, weekly, and monthly chart breakouts
• Map out intraday support and resistance levels
• Use scanners during market hours to search for high of-day and breakout stocks
• Remember that trading is risky and hard, and use a day trading simulator to practice

Day trading is so hard because of the volatility of low-float stocks. They move quickly, and most traders must be more disciplined and patient enough to trade only the best setups. Most new traders need to learn support and resistance and how to trade the technicals and end up being bag holders or blowing up their brokerage accounts.

Day trading is so hard because of the volatility of low-float stocks. They move quickly, and most traders must be more disciplined and patient enough to trade only the best setups. Most new traders need to learn support and resistance and how to trade the technicals and end up being bag holders or blowing up their brokerage accounts.