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The Complete Idiot's Guide to Active Trading by Ken Little

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Chapter 17
Short-Term Trading Strategies, Part 1: Day Trading
In This Chapter
• What you need to be a short-term trader
• Scalping as a trading strategy
• A closer look at shorting
• Fading as a short-term strategy
A combination of switching stock pricing from fractions to decimals and the bear market following the collapse of the dot.com bubble were thought by many to be the end of short-term active trading. Also known as day trading, this once robust part of the trading industry took a one-two punch. The conversion to decimals in pricing stocks reduced the spread between the bid and the ask, which was an important source of revenue for day traders. The bear market put an end to most of the big intraday gains that were the norm during the dot.com ...

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