The best trades for the day trader comes when the markets enter into a trend. Next day gaps can open with a gap down that formed a major top the day before. When prices broke the last minor bottom, they also broke lows and gave a signal to enter the trend short. This is where daytrding can be tough on a new traders. By maintaining the stops above the most recent minor top, a trader was in on most of the collapse of the markets on that day. A daytrader was able to find the right trades to capture a larger part of the dominant trend. Thus that they will not get the absolute high or low for entry, but trading with the trend allows you safer, higher probability, lower risk trades that build the consistent profits day traders want.
Equities Day trading
Forex and stock traders are looking for the consistently wrong investor, trader and take the opposite position. This will obviously lead to winning trades for them. All traders have read trading books that point out that increasing volume is good for the continuation of the trend. Many new stock traders will try and fight the trend.
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