What is Day Trading?

Day Trading has skyrocketed in popularity in recent years, with the internet providing instant access to a mass variety of brokerages and social media really influencing millions about the stock market it's no wonder everyone and their mother is trading nowadays?

But seriously let's explain day trading, Day trading is speculation in securities, specifically buying and selling financial instruments within the same trading day, such that all positions are closed before the market closes for the trading day. Traders who trade in this capacity with the motive of profit are therefore speculators. Although if someone holds an asset overnight I would still classify that as day trading personally. The jist of it is you want to buy something at a lower value then sell later at a higher value.

Trading is a way to generate income, whether it's some extra money to go on a vacation or you want to make it a full-time career let's discuss some strategies to be successful and ultimately profitable trading.

I will using the term asset throughout this guide, it could refer to a stock in the stockmarket, a cryptocurrency, a commodity like gold etc... it applies to all.

How to be successful Day Trading

Trading like anything in life, requires unprecedented discipline and risk management. Of course technically all you need is money and an internet connection to get started, without the 3 mentioned you will lose your money faster than the Avengers Endgame spoilers ☹.

With that being said it is totally possible to be successful trading any asset and really make a living doing it.

Here are some starter steps then we will talk about strategies:

1. Open a paper trading account with whatever brokerage you may choose, paper trading allows to use to fake money but in real-time. Basically your able to trade but with not risking your own money! I highly recommend doing this and trading for 3-6 months before using real money. I personally use Interactive Brokers , click that to open an account with them✅
2. Get in the mindest of disciplined consistency, if you want to get good at trading you need to be consistent and disciplined with your strategy. If you just want to try trading you will fail, your mindset should be I provide value by putting my money in the market, with a proven strategy my by-product is profit✅
3. Lastly you need patience, this will take years to perfect. Anything in life will take years to perfect, if you want this badly enough you will enjoy the process✅

Ok cool, now let's talk about profitable Day Trading strategies

Everyone finds success in a different way, I am going to be showing some profitable day trading strategies I have seen success in. You can take these and build onto them in the future (which I'd recommend) or you can create your own, in the end to be successful you need to manage your risk and stay disciplined.

It is crucial to backtest your strategies, once you start to develop a strategy please test that strategy with an asset in the past. Trying it in realtime is GREAT but you need to prove that it's consistently successful by testing it back in time.

These strategies are in no particular order.

?Strategy : Price Action near High or Low of Day

This is the strategy I currently use and have seen success in, it doesn't mean you will but I want to show you.

Basically, you want to analyze an assets price around breaking a new high or low of day.

There is 3 checks you need to make before you take a trade with this strategy:

1. Set a take profit % and take loss %, mine is usually 10% take profit and 5% take loss all up to you.
2. Is the asset breaking high or low of day?
3. What is the history of the asset and what price action generally happens?

Let's take a real life example, Ford $(F) has not been doing very well and constantly going down in value. The macro move is that it's going down.

So with this strategy you would wait for a break of low or high of day and go short (bet that Ford is going down in value)

That's pretty much it, experiment with different take profit % and time frames for maximizing your results?

?Strategy : Gap Fill Strategy

Pretty self explanatory, you find an asset that has gapped up or down then play the fill that gap. It's important to find a pattern first to confirm it's going to close that gap?

?Strategy : Moving Average Crossover

I am not a big fan of using indicators but some have seen success with this strategy, especially with longer time frames.

Basically you use a moving average (an average price of the last x candles) and once they cross an asset will trend in that direction.

In the above example you can see around July 2nd the blue 10 SMA crossed down below the 20 SMA signalling a good entry for a short position?

In conclusion, I hope this guide gives you the edge on how to start successfully Day Trading! And remember, no matter what area of the market you trade in, WeTradeHQ, I run a day trading mentorship where I go live with my students every single day and show them the stocks I am trading, you can join my mentorship here :https://wetradehq.com/mentors/OwnTheChaos

Brad Smith Co-Founder & CEO WeTradeHQ

Feel free to leave a review on this guide, it would mean the world to me?