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.
Active merchants can use a variety of online forex trading strategies and techniques to ensure that they are financially successful. These strategies include rebate trading, contrarian investing, news playing, trend following, and trend following.
Contrarian investing is fundamentally day trading. It seeks to follow the principle that securities that rise steadily will eventually fall. Dealers will apply a completely opposite view if they are falling.
The news playing strategy is next. This involves selling and buying securities entirely depending on the news release by a company. Rebate trading is where ECN rebates can be used as the main source of income. Merchants will often purchase lower-priced securities in greater quantities under this method.