Successful traders have to move fast, but they don't have to think fast. Why? Because they've developed a trading strategy in advance, along with the discipline to stick to that strategy. It is important to follow your formula closely rather than try to chase profits. Don't let your emotions get the best of you and abandon your strategy. There's a mantra among day traders: "Plan your trade and trade your plan."
Day traders are attuned to events that cause short-term market moves. Trading the news is a popular technique. Scheduled announcements such as economic statistics, corporate earnings or interest rates are subject to market expectations and market psychology. Markets react when those expectations are not met or are exceeded, usually with sudden, significant moves, which can benefit day traders.

Head over to websites like Reddit and you’ll see many trading dummies who will often fall at the strategy hurdle, taking the first momentum examples they see and losing money left, right and center. Savvy traders will employ day trading strategies in forex, grain futures and anything else they’re trading in, to give them an edge over the market. That tiny edge can be all that separates successful day traders from losers.


Day trading is normally done by using trading strategies to capitalise on small price movements in high-liquidity stocks or currencies. The purpose of DayTrading.com is to give you an overview of day trading basics and what it takes for you to make it as a day trader. From scalping a few pips profit in minutes on a forex trade, to trading news events on stocks or indices – we explain how.
The key to scalping while using short time frames is to identify price changes before the rest of the market has had the chance to act. You should also be willing to accept very low profit margins—gaining less than 1% on a given action will still usually be in your best interest. Because of this, many scalpers may implement tight stop-loss and stop-limit orders over time.  
The basic strategy of news playing is to buy a stock which has just announced good news, or short sell on bad news. Such events provide enormous volatility in a stock and therefore the greatest chance for quick profits (or losses). Determining whether news is "good" or "bad" must be determined by the price action of the stock, because the market reaction may not match the tone of the news itself. This is because rumors or estimates of the event (like those issued by market and industry analysts) will already have been circulated before the official release, causing prices to move in anticipation. The price movement caused by the official news will therefore be determined by how good the news is relative to the market's expectations, not how good it is in absolute terms.
Mutual funds are off-limits for intraday trading. The design of these funds is for the long-term investor, and they can only be bought and sold through a broker or the fund's investment company. Also, a mutual fund's price posts only once, at the close of the trading day. This price is known as the net asset value (NAV) and reflects all of the intraday movement of the fund's assets, less its liabilities, calculated on a per-share basis.
When it comes to booking profits in intraday trading, you will require to do a lot of research. For the same purpose, you need to follow certain indicators. Often intraday tips are believed to be the Holy Grail; this, however, is not entirely accurate. Intraday trading indicators are beneficial tools when used with a comprehensive strategy to maximize returns. To get a detailed understanding of intraday trading indicators, and its effect on trading strategy, visit…
Trending stocks rarely move in a straight line, but instead in a step-like pattern. For example, a stock might go up for several days, followed by a few steps back during the next few days before heading north again. If several of these zig-zag patterns are strung together, and the chart appears to be moving higher with some degree of predictability, the stock is said to be in an uptrend.
Unlike a number of day trading strategies where you can have a win/loss ratio of less than 50% and still make money, scalp traders must have a high win/loss ratio. This is due to the fact that losing and winning trades are generally equal in size. The necessity of being right is the primary factor scalp trading is such a challenging method of making money in the market.

To offset this, day traders are often offered the "opportunity" to leverage their portfolios with more margin, four times the buying power rather than double. Taking larger leveraged positions can increase percentage gains to offset costs. The problem is that no one is right all the time. A lack of focus, discipline, or just plain bad luck can lead to a trade that goes against you in a big way. A bad trade, or string of bad trades, can blow up your account, where the loss to the portfolio is so great the chances of recovery are slim. For a swing trader, a string of losses or a big loss can still have a dramatic effect, but the lower leverage reduces the likelihood that the results wipe out your portfolio.
Originally, the most important U.S. stocks were traded on the New York Stock Exchange. A trader would contact a stockbroker, who would relay the order to a specialist on the floor of the NYSE. These specialists would each make markets in only a handful of stocks. The specialist would match the purchaser with another broker's seller; write up physical tickets that, once processed, would effectively transfer the stock; and relay the information back to both brokers. Before 1975, brokerage commissions were fixed at 1% of the amount of the trade, i.e. to purchase $10,000 worth of stock cost the buyer $100 in commissions and same 1% to sell. Meaning that to profit trades had to make over 2 % to make any real gain.

This combination of factors has made day trading in stocks and stock derivatives (such as ETFs) possible. The low commission rates allow an individual or small firm to make a large number of trades during a single day. The liquidity and small spreads provided by ECNs allow an individual to make near-instantaneous trades and to get favorable pricing.
The tick volume is measured by how much the price is has ticked “up” or “down” in that particular candle bar. So the more people are getting in at the time, the longer the volume line will become. This is because there will be more movement in price action with all of those entry orders flying in. So it makes sense that the volume indicator is, first of all, very accurate, and second has no real lag to it. It is currently showing you what the price action is doing the number of “ticks” on that candle bar. This results in the bar looking like this:
Day trading is not for everyone and involves significant risks. Moreover, it requires an in-depth understanding of how the markets work and various strategies for profiting in the short term. While we remember the success stories of those who struck it rich as a day trader, remember that most do not—many will fizzle out and many will just barely stay afloat. Furthermore, don't underestimate the role that luck and good timing play—while skill is certainly an element, a rout of bad luck can sink even the most experienced day trader.
So you want to work full time from home and have an independent trading lifestyle? If so, you should know that turning part time trading into a profitable job with a liveable salary requires specialist tools and equipment to give you the necessary edge. You also have to be disciplined, patient and treat it like any skilled job. Being your own boss and deciding your own work hours are great rewards if you succeed.
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Scalping utilizes larger position sizes for smaller price gains in the smallest period of holding time. It is performed intraday. The main goal is to buy or sell a number of shares at the bid — or ask — price and then quickly sell them a few cents higher or lower for a profit. The holding times can vary from seconds to minutes, and in some cases up to several hours. The position is closed before the end of the total market trading session, which can extend to 8 p.m. EST.
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In parallel to stock trading, starting at the end of the 1990s, several new market maker firms provided foreign exchange and derivative day trading through electronic trading platforms. These allowed day traders to have instant access to decentralised markets such as forex and global markets through derivatives such as contracts for difference. Most of these firms were based in the UK and later in less restrictive jurisdictions, this was in part due to the regulations in the US prohibiting this type of over-the-counter trading. These firms typically provide trading on margin allowing day traders to take large position with relatively small capital, but with the associated increase in risk. The retail foreign exchange trading became popular to day trade due to its liquidity and the 24-hour nature of the market.
Day trading is normally done by using trading strategies to capitalise on small price movements in high-liquidity stocks or currencies. The purpose of DayTrading.com is to give you an overview of day trading basics and what it takes for you to make it as a day trader. From scalping a few pips profit in minutes on a forex trade, to trading news events on stocks or indices – we explain how.
This material does not contain and should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments. Please note that such trading analysis is not a reliable indicator for any current or future performance, as circumstances may change over time. Before making any investment decisions, you should seek advice from independent financial advisors to ensure you understand the risks.
Finally, keep in mind that if trading on margin—which means you're borrowing your investment funds from a brokerage firm (and bear in mind that margin requirements for day trading are high)—you're far more vulnerable to sharp price movements. Margin helps to amplify the trading results not just of profits, but of losses as well if a trade goes against you. Therefore, using stop losses is crucial when day trading on margin.
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