I always get questions about how to day trade, especially in current whipsaw market.
This time, I will try to give you a little start here
There are several ways you can do the day trading:
1, Technical analysis. This could be very straightforward. You have your favorite indicators then you trade on that.
2, Another popular way is to trade based on market internal, such as TICK, TRIN, Put/Call ratio, Premium, Tape.
Tick- Extreme readings of -1200 and +1200 are rare and offer fading opportunties. TRIN is based on the underlying assumption that the overall direction of stock prices and the rate of volume are leading, short-term indicators for the stock market. Premium is to trade the spread between the futures and cash. Reading the tape is one of the hardest trading skill to master. The tape is useful in timing entry and exit points. Very useful for short-term trading.
3, Market profile is a very popular trading strategy nowadays. It is a tool for organizing time and price data, graphically representing how volume builds at various prices over time. There are some basic information about it here
http://www.cbot.com/cbot/pub/cont_detail/0,3206,1058+46499,00.html
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