2024-07-01 12:44:09
Авторка: Inna Svatenko 
Day Trading — Strategy of Trade Planning
The right strategy is a key step to successful trading. You can choose a simple way — to hold crypto in the account for a certain time and then sell it when its rate increases. Experienced traders choose more complex options, and day trading is one of them. This strategy requires deep market knowledge and the ability to make quick decisions.
Let’s find out what day trading is and how to plan trades to profit from them.
Content
What Is Day Trading?
In simple words, day trading is buying and selling financial instruments during one trading day to make a quick profit.
More than 100 trades can be made in one session. Traders make money on short-term price changes fixed during the day. Highly liquid instruments prone to strong volatility are chosen for trading. These are often stocks, crypto, fiat, and futures on different assets.
Day trading is more sensitive to news, politics, financial reports, and statistics, which often affects the participants’ psycho-emotional state.
How to Start Trading?
We have prepared a list of steps to help you get started with day trading:
- Learn the basics of day trading, including technical analysis, indicators, and strategies.
- Find a broker with a good reputation.
- Develop a clear trading plan, including goals, risk management, and exit rules.
- Choose the assets you will trade.
- Open a demo account to hone your skills and test your plan.
- Start real trading. Start with small amounts and increase the volumes as you gain experience.
Strategies for Intraday Trading
How does intraday trading work? Strategies can be as follows:
- Scalping. Traders open many small trades throughout the day to make small but quick profits.
- Trend trading. Participants try to capture the market movement and follow it. Trades are opened in the direction of the main movement.
- Trading on breakouts. Traders expect a significant movement in the direction of broken support or resistance levels.
- Counter-trend trading. Participants go against the trend, waiting for a price reversal.
- Arbitrage. An asset is bought on one market and sold on another. The difference in quotes is used as earnings.
- Trading on news. Traders track and quickly react to news that affects price fluctuations.
Tips for Intraday Trading
How to increase profits and minimize risks? We have prepared recommendations for you.
- Try to regularly update your knowledge of day trading strategies.
- If you are a beginner, first learn not to lose your investments. Do not expect a high income right away.
- Watch the level of risk. If you have reached the limit of daily losses, we advise you to exit the market.
- Combine cryptocurrency day trading with medium and long-term strategies.
- Before entering the market, evaluate the fluctuation of quotes on short and long-term timeframes.
- Choose currency pairs that do not repeat each other’s behavior.
Features of Day Trading
To make intraday trading smooth, make sure you have a stable Internet connection, otherwise you may miss the moment of order withdrawal. For re-assurance, use take proft and stop loss. It is better to trade on a PC with a large monitor, as it will be difficult to analyze charts and large amounts of data on a smartphone.
In the beginning, you should not open many positions, as it will be difficult to keep track of everything. We also do not advise beginners to change financial instruments frequently. Choose 1-2 currency pairs and trade until you fully understand their behavior.
Advantages of Intraday Trading
Intraday trading has several obvious advantages:
- Trading is not affected by global news (war, pandemic);
- You can start day trading with a small amount of money;
- The result of trading will be visible at the end of the session;
- The possibility of frequent trades increases the probability of profit.
Conclusion
- Cryptocurrency day trading involves buying and selling assets during one trading session.
- Before you start day trading, you need to make a clear plan.
- Popular strategies are scalping, trading on or against trends, arbitrage, trading on breakouts, and news monitoring.
- Beginners should open trades cautiously, using 1-2 instruments.
- Day trading requires a stable online connection.
- You can evaluate the result at the end of the trading day.
FAQ
This is a way of earning for traders who have a high level of concentration and are ready to devote considerable time to analyzing the market.
During Forex trading, fiat currencies are used: dollars, euros, yen, etc. The principle of day trading is the same for all markets — trades are opened and closed throughout the day.
Yes, you can make a profit on short-term rate changes.
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