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How I Made $47,692.27 In A Single Day

The Subtile Trap of Trading

Day Trade Extreme

The Psychology of Price Movement

Trading Stocks and Options as a Business

Inside Days Chart Pattern Course

Free Forex Trading Course

"You don’t need to know everything about day trading to succeed as a day trader. You need only to find a few solid strategies that work for YOU — then master them."
Jens Clever
Click here to see how Jens' day trading ebook helps people do exactly that.

Trade Stocks and Options Video Course

Trading Styles - An Overview of Day Trading Styles

Position Trade / Swing Trade / Day Trade / Scalp Trade

Position Trade. A position trade is an intermediate to long-term position often based on a weekly or monthly chart and can have a time horizon as short as a few weeks to as long as several months or more. Many traders prefer to keep their position trades in a separate account in order to avoid the potential margin issues involved in holding positions overnight in an active day trading account. Another advantage to separating the position trades is strictly a psychological one. Many traders find that by keeping long-term positions outside of their active trading accounts, they are less tempted to make spurious short-term decisions on their long-term core positions.

Swing Trade. A swing trade is a short to intermediate-term trade typically based on a daily chart that aims to capture stock or market swings lasting between 2 to 5 days or more. By definition, swing trades are held overnight, and commonly appeal to traders seeking to capitalize on multi-day moves without having to monitor their trades moment by moment.

Day Trade. By definition, a day trade is quite simply a trade that is closed out by day's end (i.e., not held overnight). This does not mean, however, that it must be a daylong trade, closed only minutes before the closing bell is rung. Instead, day trades can be thought of as strictly “intra-day” trades. For example, a stock setting up as a swing trade in the early part of the day is frequently best thought of as a day trade in which open profits resulting from an above-average morning move are to be locked in ahead of the often treacherous midday doldrums. Other day trades can simply be based on a larger intra-day timeframe such as 60-minute or 15-minute chart, and not be suitable for holding overnight.

Scalp Trade. A scalp trade is one in which a trader seeks to capture small to modest-sized profits based on a smaller intra-day timeframe such as a 2-minute or 5-minute chart or on Level 2 activity alone. Profits in scalps are best taken quickly, typically on the first meaningful move using momentum to lock in gains. Conversely, stops are kept extremely tight and many micro traders simply “get out” at the first sign of trouble. Execution knowledge and skills are a prerequisite to employing this very short-term approach.