News Traders are almost always exclusively day traders. They must work within the short window when the market is still reacting to the news. The impacts of news on markets only last for a short time.

News trading success depends on how well you foresee the market’s reaction to the news.

This means you need to have a good idea about market psychology to begin with. Experienced day traders develop this sense naturally throughout their careers. However, beginners can news trade too by reading intensively about how the market had reacted to significant events in the past.

Range Trading

Markets don’t trend often. You will identify trends in a market only thirty percent of the time. Range Traders take advantage of the non-trending market and buy and sell within a certain range. You can identify this range from volume charts and the price of a stock.

Unlike trend following, you don’t buy when the price rises and sell when the trend drops. Instead, you buy at the lower end (or the support band), and you sell when the price reaches the higher end (or the resistance band).

To follow this trading strategy, you must first identify a range. You cannot call it a range if the price hasn’t recovered at least twice from the support band in a given time frame. The same applies to its resistance price.

If the price hasn’t recovered and moved back to these ends more than once, you cannot call it range. Instead, it could be an uptrend or a downtrend.

After identifying the range, you can enter the trade by buying or selling at the resistance and support prices. Or, you can place a limit order.

Scalping Strategy 

Scalping is a popular day trading strategy where the traders try to make as many small profits as they can throughout one session. They do this by selling the same assets multiple times on the same day. If you are following this strategy, you are a ‘Scalper.’ An average scalper places around a hundred trades a day!

The main attractions of scalping are its simplicity and being less dangerous than other strategies. Scalpers are at a lower risk of losing their capital because they don’t aim to gain massive profits from one trade. Instead, they try to make several small gains throughout one session. This could add up to sizeable profits for a single day.

However, being a scalper requires knowledge and experience. You must be good at interpreting charts to be a scalper. Placing several trades throughout the day means you won’t have much time to place each one. So, often scalpers have to make quick trading decisions (in as little as a minute or two) based on viewing charts.