What is Day Trading?

Day trading is a short-term investment strategy that involves actively buying and selling securities on the same day to profit from short-term fluctuations in price.
Popular markets today include stocks, futures, forex, and cryptocurrencies. On lower volatility securities such as futures and forex, traders often use margin and leverage to increase their buying power. While using leverage offered by your broker has the potential to increase profits, it has also been the downfall of many traders.

Is Day Trading Profitable?

How much you can do day trading depends on your capital, the markets, and your skill. Perhaps the most important though is proper risk management and rule-based daily trading rules and strategy.
Highly accomplished traders devise firm plans prior to any trade, such as deciding the number of shares they’ll purchase and when it is time to leave a transaction. By constructing solid strategies, these traders are more likely to experience success in their investments.
Setting up risk parameters such as a stop loss order or limiting your maximum positions can be critical elements in successful trades. As day traders, it is our responsibility to safeguard ourselves by reducing potential losses and increasing the chances of generating profits.
Once these measures are considered, there is no limit on how much money one could make when market conditions align favorably!

How to start a day trading as profession?

When it comes to day trading. It’s best to entry with eyes open in the market taking small

 profit and accumulate full confidence on your plan or strategy. 90% of people who trying

day trader Fail and ending lose all the money to avoid some mistake most of new trader make focus on these 4 step.

01

Stablish your strategy. 

Losing money scares people into making bad decisions that will cost you sever loses of money sometime when you are day trader. Having an EXIT plan helps you to cut losses and helps you to avoid making an emotional decision when you need to make a rational decision.

02

Be patient.

Look for an entry according to your plan or type of strategy, don’t chase the market wait for A+ plus or B+ give time for short strategy work. “Patience can produce uncommon profits." Phil Carret.

03

Read the market.

Continually watch what’s happening in the market Read those Set up look into the mount of volume the moved (wave) that’s including Big News and Earnings – even unrelated to your investment could change the whole board in the market moving your positions to target Risk. 

04

Don’t be greedy. 

Greed can be described as an intense desire for something and often manifests as the intense desire for wealth. This can easily get out of hand when the market moves against traders but is equally likely to negatively influence trading decisions on winning trades. If you want to be a successful trader, greed is probably the biggest obstacle you will have to overcome.

Have a trading plan, Use the risk management strategy in every trade, don’t do over trade, don’t Doubling down’ on losing trades, cut the losses in time.


Day traders use Different strategies, some of these strategies are:

What is scalping on day Trading:

  • Scalping: This strategy focuses on making many small profits on ephemeral price changes that occur throughout the day. Arbitrage is a type of scalping that seeks to profit from correcting perceived mispricing in the market.

What is Range on day Trading:

  • Range/Swing trading: This strategy uses predetermined support and resistance levels in prices to determine the trader's buy and sell decisions.

It's important trader on News :

  • News-based trading: This strategy seizes trading prospects from the heightened volatility that occurs around news events or headlines as they come out. One type of news-based trading involves whether a merger or acquisition that has been announced will go through or not.


Reversal strategy:

  • Reversal strategy: This type trading is based on volume but also come with Hight risk. This involves decisions against the market trend based on analysis and calculations.

Momentum Strategy:

  • Momentum Strategy: The basis of this strategy is the market having one single roll big trend is on play combine with a lot of volume is when we see big gap up or big gap down the key with this to entry before the market will be moved based on pattens, technical analysis, volume, and breakout. 

Risks of Day Trading

For the average investor, day trading can be a daunting proposition because of the number of risks involved. The U.S. Securities and Exchange Commission (SEC) highlights some of the risks of day trading, which are summarized below:

Be prepared to suffer severe financial losses: Day traders typically suffer severe financial losses in their first months of trading, and many never make a profit.

Day trading is an extremely stressful full-time job: Watching dozens of ticker quotes and price fluctuations to spot fleeting market trends demands great concentration.

Day traders depend heavily on borrowing money: Day-trading strategies use the leverage of borrowed money to make profits. Many day traders not only lose all their own money, but they also wind up in debt.


Don’t believe claims of easy profits: Watch out for hot tips and expert advice from newsletters and websites catering to day traders and remember that educational seminars and classes about day trading may not be objective.


The purpose of this website is totally educational.


DISCLAIMER I am not a financial advisor and anything that I say on this website or YouTube channel should not be seen as financial advice. I am only sharing my biased opinion based off of speculation and my personal experience. You should always understand that with investing there is always risk. You should always do your own research before making any investment.