My trading technique is known as day trade scalping. There are several different strategies you can take with regard to day trading, but I have found scalping to be consistently profitable, low risk, and less stressful.
The main differences with my trading technique compared to the typical scalper are as follows:
I only trade Options.
When initiating a position, I do so based on the percentage change in a stock’s price. Each stock has unique movements that are typically consistent on a daily basis. Depending on the stock, when it reaches a specific percentage change, I will execute the trade looking for a quick reversal in stock price. Once I have made a profit of any amount, I will sell.
I do not use chart indicators (i.e., RSI, resistance, support, etc). I rely solely on a simple 5 minute real-time chart that is provided by Robinhood. (I trade entirely using my cell phone).
I only hold one position at a time in order to ensure I have enough equity available to average down my position if needed. Also, holding one position is a lot less stressful and allows you to be more focused.
I have a specific watch list of 30 stocks that I cover every day, and on occasion I may look at other stocks during the day if I see a good trading opportunity. Most of the stocks on my watch list are blue chip and well known; plenty of volume each day.
I never trade penny stocks, stocks with low volume, or stocks with an Implied Volatility (IV) over 50%.