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What is day trading?What is day trading? Day trading is the buying and selling of stocks, foreign exchange, commodities and other assets or financial derivatives during a single trading session. Traders speculate on the movement in asset prices by employing various strategies. Decades ago, day trading was undertaken only by investment firms, financial institutions, trading funds and brokerages. Today, online trading platforms have brought day trading to the palm of a retail investor’s hand. According to US investment bank BNY Mellon, retail investors have become a “growing force to be reckoned with”. Their share of total equities traded went up to nearly 25% in 2021, from the 10% to 15% reported in the first decade of the 2000s. For many retail investors, day trading has become a career. Others have burnt their hands trying to make profits from this risky and fast-paced short-term strategy. Now that we have gone through the definition of day trading, let us read more about day traders, their techniques and strategies, and day trading examples. Life of a day trader An experienced day trader’s session will start hours before the market opens or the night before. The trader will take their time to analyze price charts, investor sentiment, corporate news, macroeconomic developments and more. As the stock market opens in the morning, some traders may sit on the sidelines in the first hour of a trading session to avoid the opening minutes that tend to be volatile. After the market settles, day traders spend the day scanning for market opportunities. Day traders usually stick to securities that they have experience with as they will be aware of the little intricacies regarding that particular security. The day trader will open and close positions according to their price targets and risk tolerance. A trader’s setup may involve hedging to protect against unexpected losses. Day trading is particularly popular with foreign exchange traders. Popular Forex pairs have deep liquidity and tight spread, which allow day traders to speculate on small price movements. Strategies used by day traders To understand how day trading works, readers need to know about the various intraday strategies used by traders. Scalping Scalping involves a day trader aiming to speculate on small changes in an asset’s price. Traders place numerous short-lived scalp trading bets in a day so that small profits add up to a significant daily gain. Day traders need to implement a strict exit strategy to prevent large losses. Range trading Day traders are known for their use of technical analysis which involves identifying support and resistance price levels and analysing price trends, volume and volatility. Range trading involves buying and selling of securities between a range of price where the top price is determined by the price resistance level and the bottom is determined by the price support level. Algorithmic day trading Algorithmic trading involves execution of trade orders based on pre-programmed instructions based on price, time and volume of a security. Algorithmic trading is extensively used by hedge funds and investment banks to carry out day trades in large orders at high speed. This is also known as high-frequency trading. News-based day trading The trader will set up his trade setup based on trading opportunities arising from expected corporate and macroeconomic developments. An example of this type of day trading is anticipating a fall in broad markets before the publication of market-moving data such as inflation numbers or corporate earnings calls. Day trading explained through examples To better understand day trading, let’s look at the following example. Note that it is for educational purposes only and does not constitute investment advice. John is a self-taught day trader who has learnt the art of intraday trading over time through trial and error. He specialises in stock trading and is particularly interested in the US equity market. Over the years, John has traded Apple (APPL) shares extensively and is well-versed with developments at the iPhone maker. Before Apple’s fourth-quarter earnings announcement, John conducted a thorough research on Apple and concluded that the company will report strong revenue and profit growth. John aimed to trade using news-based trading and range bound trading techniques on the day of the result announcement. The trader opened an intraday position with a target price of $155, based on identified resistance levels, and a stop-loss at $135, based on identified support levels for Apple shares trading at $145. If Apple announces higher-than-expected earnings, which would cause the stock to rise to a level above $155, John will book profit. In case the company surprises on the downside, causing the stock price to fall, John’s position will automatically close when the price falls below $135, booking a loss. During the day, John will constantly monitor Apple’s intraday performance to react to unexpected market volatility and to adjust his profit-taking and stop-loss levels, according to real-time performance. by capital.com
Education
by Sahran_Mohammed
nzdusdthe key in auctioning process , whether you looking at initiative buying -initiative selling / responsive buying-responsive selling we start with the auction market process and value in the market as institutions do and then we learn to track responsive and initiative trades to be able to trade with them trading is all about leverage and managing risk fast it's not about scalping trading all day everyday its all about finding trade locations based upon the auction process. institution money flow its called tracking volume imbalances in order flow otherwise known as heavy volume all this does is indicate that there big money traders hedge funds pension funds mutual funds mangers large institution governments either putting lot of money to work or unlock or unwinding postion basically, all the people that are in the know ok. you and I were not in the know we are we never gonna know we never gonna be inside there always gonna some one else we don't want based upon what they saying there gonna do we want make their bets on what actually do the best way to track that is through large orders that come through either through a commitment of traders reports that's obviously a weekly report from CBOT .ORG OR SEC GOV if you track day-to-day transactions and you and you keep track of that you can accumulate better levels of which to trade from therefore you have better probabilities market is not trading base upon chart patterns candle stick patterns or anything else becuse thats all subjective thats subjective to what you put on your charts what you need to think about bigger picthure we gonna identify higher opertunities your not just gonna buy just besuse everything selling off the same way wouldnt buy the all time all time highs just becuse it maid a new all time high or break out how maney times you buy breakout it reverse on you well if you want stop doing that you got better prepared is all im trying to say so the auction that these institutions speefically private equity smart money is going to do its going to leave imbalance in volume and they going to have to what these auction leaves to distingushed orderflow foot print that can have effect on the futhure price movement of a security or market whether its next 15 mintues or the next 15 more days if you follow institutional money flow you can determine whether you should be looking to buy something or to short it or just to adjust your risk what it really signals is that those who those who track institution money there is lot of inventory or supply to move imbalance volume i track, buy imbalance, sell imbalance, crossed market trade auctionning market where buyers lift and market come back in to these buying imbalnce area i can look opertunities given this information this tracking volume imbalance over time www.cmegroup.com
Education
by YODA-TRADER
Link swing short idea Greetings from Team : Trading The Tides. lets discuss a short sell oportunity on (Link USDT ) Target area for initiating short : 7.3 DCA Limits : 8 to be exact as there is a big gap remaining TP : 6.8 , 6.3 thats a swing position so SL : no sl Hold Time : short - mid term Technical Chart Pattern: structure gaps , rising wedge Posible liquidity area : 8 Exchange: Binance Rules : We use big capital with less leverage . Max leverage : 3x Better take trades with 1x. We only post the exact setup we are following for the trades . But DYOR . Not a Financial Advice ! From Team : Trading The Tides Like , Share ,Follow Thanks a lot and see you soon on the next trade .
Short
by xairuq
1
IDXNONCYC: Is It Time for "Consumer Defensive Stock" to Shine?Hello Fellow Global Stock Trader/Investor! IDX Sector Consumer Non-Cyclical is an index that tracks the price movement of Indonesia Consumer Defensive Stocks. People call it "Consumer Defensive Stocks" because the customers will continue to consume the company's products even during an economic downturn. Why do we forecast the IDXNONCYC? By Analyzing the Sectoral Indices Movement, We could use the data as a filter to look for a potential trading setup in a specific sector. Technical Analysis 1. IDXNONCYC is moving above the EMA90 which indicates a bullish trend 2. Breaking out of the Falling Wedge pattern 3. MACD created a golden cross, it signified the possibility of continuing its bullish trend to the target area The roadmap will be invalid after reaching the target/support area. " Disclaimer: The outlook is only for educational purposes, not a recommendation to put a long or short position on the IDXNONCYC"
IDX:IDXNONCYCLong
by financialfreedomgoals101
Trading needs to be treated like a business 🧑‍💼This is spoken about a lot but what does it mean?⁠ In starting a business you would need funding and a business plan, right?⁠ ⁠ You would have realistic goals mapped out and be focused on your cashflow.⁠ ⁠ You wouldn't blow your 'cash' in recruiting too fast, or buying too much stock or spending too much on marketing.⁠ ⁠ Yet, in trading most don't have a plan. Or focus on protecting their cash.⁠ ⁠ They also don't think long term in line with their plan.⁠ ⁠ They over estimate their expectations short term and in doing so mess up what they could achieve long term. ⁠ You just wouldn't do this in business right? No one would open or run a business you knew nothing about. Most come in to trading thinking this will be easy! It's not and we all come in knowing nothing. So again would you start any other business with no training or idea? Most can keep the trading cash flow topped up as we all start out on this journey having another job to fund trading. There is no such thing as a sure-fire way to make money online. However, if you seriously want to make money out of forex trading it needs treating like a business. In a lot of ways, being a trader is like being an entrepreneur. It takes more than just knowledge and a killer idea. It also takes hard work, discipline and mental preparation. The reason it’s a good idea to treat forex trading like a business is because as a trader, your account is your own business. Trading isn't about the quick money it's about being consistent. That consistency comes from having a plan and sticking to it much like you would a business plan. Treat losses as a cost of business and factor them into the plan. The business plan for you the trader will be the strategy and risk management you opt to run. Set realistic targets and goals this will ensure suitability, Much how good businesses set up there own goals and aims for coming year with out being to risky. If you lack on the knowledge front in certain areas invest in education and training, No successful business neglects training and learning. Invest in resources that will help your business grow. Yes TradingView is free but having a higher package and more data help me just as an example. There is no other business in the world like trading where the over heads and start up cost are low, So if paid resources can kick you on to next level factor them in as a cost of business. Keep treating trading as a hobby and it becomes an expensive one. Start treating trading as a business with the ethos and cultures applied the same as those of successful businesses and that profit starts to come naturally. Thanks for taking the time to read my idea. Hope you all have a good weekend Darren 👍 ⁠
Education
by pow_removetheguesswork
57
MOVING AVERAGE TRADING | ADVANCED LESSONHello traders 👋 Today im sharing my trading strategy with moving average. What Is an Exponential Moving Average (EMA)? An exponential moving average (EMA) is a type of moving average, but it's better than MA(Only my opinion. It is one of the most important things in forex trade. Because this gives you the best direction of the trend. How to trade And Use moving average. 🧑‍🏫 When most traders use it moving average crossing. I don't think it's a good strategy. For me, when using it, looks at a trading setup. 1. Looking daily timeframe 👀 This is because you want to find the price action for a longer period and not just some light movement. 2. Draw ✏️ To draw a trend line ( if you don't know how to draw trendline watch my last lesson) 3. Add 50 EMA 📉 4. The Basics of Support and Resistance + key levels ✔️ the concept is applied in order to maximise the chances of winning trades. 5. Looking for entry + risk management 💰 Always wait for confirm example; trend line break + price making lower low + pullback + add indicators. In this lesson, we expect EURJPY to fall below 134.50. Let's see what happens in the future. 🤲 If you are enjoying the lesson, please hit the like show your support. 🤲
Education
by YertuntsTrader
2
TRENDLINE TRADING | Advanced trading lesson Hello traders 👋 Today im sharing my trading strategy with trendlines. It's my first education post, so maybe a lot of mistakes. Please don't take it the wrong way, thank you. Let's talk about lesson What are Trend lines? Trend lines are diagonal lines that are drawn on charts in the financial markets trading. Trend lines are used to highlight , visualize , and make price action easier to analyze on different instruments and assets in the financial market. How to trade And Use Trend Lines + basic supports. 1. Wait for touch ⌛ When drawing a trendline, the first thing price is check the three times or more. If the price is not checked three times or less, can't draw trendline. 2. Draw ✏️ To draw a trend line, you must choose a time frame. I'm use always bigger than 1 hour timeframe . This is because you want to find the price action for a longer period and not just some light movement. 3. The Basics of Support and Resistance + key levels ✔️ When trading with trend lines, the concept is applied in order to maximise the chances of winning trades. 4. Looking for entry + risk management 💰 Always wait for confirm example; trend line break + price making lower low + pullback + add indicators 🤲 If you like my strategy, Please like and comments. 🤲 Thank you!
Education
by YertuntsTrader
8
ALL Crypto is High Manipulated! Tracking BOTS PART 2!Padawans, The Market maker bot has come right on time, to set the direction of the market or liquidate people or both. Maybe he is on some Super Yacht right now off the coast of Dubai, who knows. Now I am not saying that we can trade while he is up to his dirty behavior, but what I do know is that along with some other technical analysis, we can generally tell the general direction of the market AFTER he or they are finished Perhaps should not have posted this. lol- Incase they change the market entry time from this cycle. What do I know about the direction you may ask- I know it is time to hand me my LightSaber
Short
by Skywalker-thelastjedi
Everyday with one Equity Intraday Profitable Idea:-Dr LalpathlaTrend Analysis is arguably the most important area of technical analysis and is key to determining the overall direction of a security. Trends are based on the principle of higher highs, higher lows (for an uptrend) and lower highs, lower lows (for a downtrend). Dr.Lal path lab is now in short term bullish mode in corrective wave pattern. and stands in Resistance area. Expecting bullish momentum, when it will cross 2850 with volume. Please initiate trade after breakout and retesting. Dr all path lab Buy above 2856. Target 2870,2880,2890,2915 Positional Target :(BTST):- 2950,3000,3050
NSE:LALPATHLABLong
by biplab86
BNBUSD WAVE And Pattern Analysis The correctional structure, especially the three waves, whether in descending or ascending and pulse correction, indicates the formation of a diametric pattern. This post is just a personal idea and analysis should not be the criterion for buying or selling The last specified pattern is currently in a flat pattern. The structure is in high time and the whole chart is in the form of a diametric pattern. You can see the ascent from this area, but lower levels can be achieved
BINANCE:BNBUSD
by Sina-TFX
The ins and outs of trading psychologyThe ins and outs of trading psychology For something that I believe makes up the bulk of trading itself, I believe it is also the most overlooked. Trading psychology is what I am talking about, and it is definitely the most important aspect of trading that every trader needs to develop and master in order to become successful. In the most basic ways to put it, trading psychology is the term that defines all the feelings and emotions experienced day to day by traders. It is not something that can easily be controlled, however with time and experience it is definitely something that is needed to master in order to move forward in your trading journey. The two emotions that drive the markets are fear and greed. Based on these two emotions, you can find all the negative effects of trading psychology. Based on the emotion of fear, the following can occur: • Fear of missing out (FOMO), leading to bad entries • Exiting a trade too early • Exiting a trade in a drawdown only to see it go in their original direction • Adding to a losing position in hope of recovering the drawdown • Constantly checking your trade • Finding yourself glued to the charts Based on the emotion of greed, the following can occur: • Moving your original TP in order to gain more profits • Adding large positions after seeing gains in a position • Over trading and overleveraging to chase big returns • Risking big on a single trade Another important thing that needs to be understood is the difference between mistakes and losses. A lot of people think that trading mistakes and trading losses are the same thing. However, a trading loss is simply a trade that hit your stop loss and did not go your way. Until the day you learn to accept that losses are just as much a part of trading as winners, you will not become successful. A trading mistake on the other hand is you simply not following your own rules. You have to understand the importance of being disciplined and how it is possibly the single most important aspect of lasting in the markets. Never break your own rules just to be right, because as said earlier, you need to learn that losses are completely normal and expected. Emotions are a normal part of everyday life, however it cannot be stressed enough how important it is to leave them completely out of your trading. Many others believe that negative emotions should be shut off, however positive emotions are great to have, however I think otherwise. Emotions should not be attached in any way to trades, whether positive or negative. If emotions are attached to every single trade then what can happen is that you could have a great week and make a certain amount of money that week. Now by attaching an emotion to that trade, you are programming your mind to believe that the following week even if half that amount was made, it is not good enough as you do not have the same intensity of positive emotions. In trading you have to be emotionless towards both wins and losses and strictly follow your rules. Constantly working on your psychology and mindset is key to developing and succeeding as a trader. Something as simple as developing a daily morning routine, keeping a journal, meditation, exercise, and visiting a mindset coach, are great tools to constantly develop and keep your psychology and mindset at its best. Meditation alone has helped me to develop as a successful trader by improving my focus and attention, reducing stress, reduced panic, improved my information processing, increased mental strength and emotional intelligence, and increase in my focus. If there is one thing that cannot be stressed enough, it is that the aim of forex is to gain pips and not money. Chasing money, especially fast money, is gambling and you will never have control as long as you remain with that attitude.
BITFINEX:XRPUSDEducation
by opes_trading_group
EUR/AUD Free Analysis with the BULLS! In this analysis I really dumbed it down for people to understand the basic concept of support and resistance/supply and demand. In this market currencies move in my experience what I would like to call a magnetized way. Banks on higher time frames buy and sell in on positions and these are the looks you want to be looking for! Targeting the areas where price has previously been to and following the trend! SIMPLE ANALYIS! Hope you guys enjoy this and lets see how she turns out? Any questions leave them down below! I love Currency Trading.
Long
by BennettTrades
A lesson in Revenge Trading"Cut your losses short, but let your winners ride!" We have heard that quote, one and a million times, it's one of the first things you hear when you start trading, a quote almost as known as "Buy low, sell high" And why is it so important and so widespread?. The reason is pretty simple: You need to make more on your winning trades, to compensate all your losses and still make a profit. Sounds pretty simple right? Your win ratio and Risk to Reward are your most important stats, Well it's easier said than done, and today I learned something about that coupled with revenge trading. But what is revenge trading? It's as simple as looking to make quick profits in a quick and aggressive way, after suffering losses, revenge trading also involves forgetting your own trading rules and risk management. Anyone experienced trader can tell you the same, revenge trading is one of the worst things you can do and one of the fastest ways to losing your ENTIRE ACCOUNT You can wipe out, months and even years, of savings and trading profits in a manner of hours or even minutes. So when you take a loss, you should step away for a while, review what you are doing and get back in the game with a clear head. In this case, I didn't take losses, I actually did make some profits BUT I was angry that I didn't make all the profits from the top to the actual bottom. So I revenge traded, even though I was up quite well in the day. Instead of even following my own earlier analysis (linked below) I decided that the best way to make quick profits, was by trying to time the absolute bottom and get a high leverage long in there. Not only I was increasing the leverage I was also increasing the risk, by trading against the trend and trying to time the exact moment the market reversed. I didn't manage as you can see in the chart. The lesson is pretty simple: Don't ever revenge trade and don't let good trades that weren't perfect enough make you become irrational. I could have pretty good profits today, but I let myself become my own worst enemy. ALWAYS PRACTICE RISK MANAGEMENT, RISK MANAGEMENT IS VITAL TO TRADING
Education
by CryptoEstratega
4