Day trading is all about fast-paced action. Unlike buy-and-hold investing, day traders aim to capitalize on short-term price movements within a single trading day. They buy and sell financial instruments like stocks, currencies (forex), or even cryptocurrency, to close all positions before the market closes. Think of it as entering and exiting a crowded market throughout the day, aiming to grab quick profits from the constant price fluctuations.
Who’s Cut Out for Day Trading?
Day trading isn’t for everyone. It’s a demanding game, best suited for individuals with the time and dedication to actively monitor the markets during trading hours. This often means full-time traders or those with flexible schedules that allow them to be glued to their screens. While some might dream of day trading from a beach chair, the reality involves intense focus and quick decision-making.
The good news? This guide dives into an intraday strategy to jumpstart your day trading journey, even if you’re new to the fast lane
How To Start Day Trading
Let’s face it, diving into day trading without a strategy is like showing up to a sword fight with a pool noodle. You might get lucky, but it’s a recipe for blowing up your trading account.
Our day trading course Is your secret weapon, separating you from the crowd chasing the latest meme stock and hoping for a viral moon landing (seriously, some strategies are more reliable than internet hype).
An excellent day trading strategy should offer more trading opportunities for traders, to be able to generate decent income. An excellent day trading strategy should be able to at least assist traders to generate 5-10% of their trading account balance, but If you’re starting with a piggy bank full of loose change, a 5-10% profit might not pay the bills. In that case, consider building your capital first. There’s no shame in that game!
Let’s say your current capital makes generating a living from a 5-10% return on your account size feel like scaling Mount Everest in flip-flops. Hey, there are options! Explore alternative funding sources like prop firms (basically, they lend you money to trade with, and you share the profits). We have a whole other guide dedicated to navigating the prop firm jungle, so you don’t get lost.
Remember: A solid strategy is your first step to day trading domination (okay, maybe not domination, but a more informed approach).
day trading for beginners
Knowledge is power, they say. Especially when you’re staring down charts and trying to predict the next market move without your fortune cookie (although, hey, if a prophetic cookie exists, hit me up).
The point is, before you jump into day trading like a lightsaber duel with a blindfolded Tauntaun (bad idea), you gotta learn the ropes.
There’s a treasure trove of knowledge out there. Free online courses, YouTube channels (though beware of the “guaranteed profits in 24 hours” ones), and even Google can be your teacher. But sifting through the endless content can feel like navigating a swamp full of clickbait crocodiles.
1. Cut Through the Noise (and Maybe the Ads)
to cut the noise and save time on learning trading systems that do not work you can start with our free trading courses to build your trading foundation. Once you’re not mistaking a candlestick chart for a particularly angry barcode, explore our paid courses that delve into proven, time-tested strategies.
2. My Course Catastrophe (and Triumph!)
Don’t be afraid of paid courses! I went down that path – some were gold, others made me yearn for the simplicity of a rock (seriously, some explanations were rock-solid…ly bad). But the good ones, along with my perseverance, are why I can share my trading knowledge with you today.
3. Building Your Trading Empire (One Profit at a Time)
Day trading is a marathon, not a sprint. Daily results don’t define you (unless they’re all wins, then maybe a celebratory dance is in order). Focus on the long game and track your progress monthly or even quarterly.
4. Forex Day Trading Reality Check: No Lambos (Yet)
Forget the “get rich quick” schemes. Forex, like any market, demands dedication and realistic expectations. Mastering profitable day trading can take beginners years. Don’t get discouraged by comparing yourself to others with fancy cars and private islands (they probably put in the hard work too). Focus on your learning journey and celebrate your wins, big or small.
Most Profitable Day Trading Strategy
This is one of the most profitable trading strategies, this video is taken from our premium trading course.
Follow the trading Ideas as per the trading setup!
– Wait for the narrative/story to unfold meeting the requirements.
– Do not trade if requirements are not met!
– Trade management will help manage risk!
Benefits of intraday trading – Day Trading Benefits
- There is no overnight risk: Intraday trading, by definition, doesn’t require an open position overnight.
- Limited intra-day risk: The trades of day traders are usually short-term, lasting about one to four hours depending on market volatility, so the risk of long-term trades is minimized.
- Time-flexible trading: Day trading might suit people who desire flexibility in their trading. Adding an element of time to price action gives traders more flexibility
- An intraday trading model with specific requirements to look at a specific time is ideal for minimizing risk and maximizing flexibility.
- Multiple trade opportunities. Trading opportunities unfold frequently with this intraday trading strategy. In a week a trade can have at least 2-5 trading setups with an average of 30 pips per trade. This gives traders the advantage of risking less and not having to wait for weeks like swing trading.
Swing Trading vs Day Trading
The objective of swing trading is to profit from anticipated price movements by making long-term trades lasting a couple of days or weeks, whilst intraday trading mainly focuses on short-term trading. Unlike day trading, swing trading is suitable for part-time traders or working individuals. It is ideal for new traders to focus on one trading strategy rather than both day trading and swing trading depending on their experience level.
I do a mix of swing trading and day trading depending on my schedule. For beginner traders, I recommend swing trading first, then day trading later. For beginners, intraday trading is more challenging than swing trading. High timeframes are less noisy and less clustered with many trading candles, so swing trading is easy.
One candle on a daily time frame forex chart represents 24 candles on a one-hour time frame chart. Traders can easily become overwhelmed and lost when doing technical analysis, which is what makes day trading difficult. Traders find it more difficult to make sense of price movement on smaller timeframes.
The secret to day trading is understanding that the market is fractile. Essentially, this means taking into account higher time biases and analysis with smaller timeframes. This will help you frame a trading setup or refine your entries in a smaller time frame. A daily order block on an hourly chart might serve as a mitigation block or breaker. This is the reason I start from a higher time frame to a smaller time frame when doing technical analysis. I switch between multiple timeframes to refine and frame a trading setup.
Related Post:
Best Order Block Trading Guide
Fair Value Gaps and Liquidity Void Guide
