One of the best techniques that can be followed by a trader for increasing the chances of his success with trading is to try and match his individual personality with particular techniques used in this field. To simply state, day trading involves the purchase and sale of securities on a particular day and merchants involved in this field are generally referred to as day or active traders. In the past, this sort of dealing was done only by fund managers, banks, investment companies and financial institutions. However, with the introduction of internet day dealing, it is made available practically to any individuals.
As you can imagine, there are a number of techniques and day trading strategies are used by active merchants for making sure that they can succeed financially. Some of these strategies include Contrarian investing, rebate trading, trend following and news playing. Contrarian investing is fundamentally a form of day dealing that goes after the principles that the securities that are rising steadily will eventually start to fall. If they are falling, the entirely opposite view is applied by the dealers. Next comes the news playing strategy, where purchasing and selling of securities entirely depends on the news released by a particular company. Rebate trading is a method under which ECN rebates are used as the fundamental source of income. Under this method, merchants usually purchase securities that are low-priced in larger quantities. Trend following, which is one of the day trading strategies is exactly opposite to that of Contrarian investing as merchants will be assuming that rising shares will continue to rise, while falling ones will continue to fall. Range trading and short sales are other popular methods.
Statistics suggest that approximately 80% of merchants end up losing a huge sum of their investment even before they manage to learn different techniques pertaining to trading. To avoid losing, they can attend a gap trading seminar conducted by some companies. Taking up these seminars will enable the newbie and even experienced merchants to learn different techniques.
Gap trading seminars suggest that it is highly essential to match the individual personality of the merchants and their strengths with the appropriate suitable strategy. Merchants, who feel that they will be uncomfortable in taking risks should consider news playing technique as compared to contrarian investing option. The latter option is highly suitable for people, who are capable of taking risks with their money.
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