Day trading strategies are essential when you are looking to capitalise on frequent, small price movements. A consistent, effective strategy relies on in-depth technical analysis, utilising charts, indicators and patterns to predict future price movements. This page will give you a thorough break down of beginners trading strategies, working all the way up to advanced , automated and even asset-specific strategies.

It will also outline some regional differences to be aware of, as well as pointing you in the direction of some useful resources. Ultimately though, youll need to find a day trading strategy that suits your specific trading style and requirements.

Also, ensure your choice of broker suits strategy based day trading. You will want things like;

Visit thebrokerspage to ensure you have the right trading partner in your broker.

Top 3 Brokers Suited To Strategy Based Trading

FXTM Are leading forex and CFD brokers. Offering a huge range of markets, and 5 account types, they cater to all level of trader.

FXTM Are leading forex and CFD brokers. Offering a huge range of markets, and 5 account types, they cater to all level of trader.

Trade Forex on 0.0 pip spreads with the worlds leading True ECN forex broker – IC Markets.

Trade Forex on 0.0 pip spreads with the worlds leading True ECN forex broker – IC Markets.

Automation: Automated trade supported through trading platforms (MT4)

Forex.com boast a global reputation. Regulated in the UK, US, Canada and Australia they offer a huge range of markets, not just forex, and offer very tight spreads and a cutting edge platform.

Automation: Automated trade supported through trading platforms (MT4)

Before you get bogged down in a complex world of highly technical indicators, focus on the basics of a simple day trading strategy. Many make the mistake of thinking you need a highly complicated strategy to succeed intraday, but often the more straightforward, the more effective.

Incorporate the invaluable elements below into your strategy.

Before you start, sit down and decide how much youre willing to risk. Bear in mind most successful traders wont put more than 2% of their capital on the line per trade. You have to prepare yourself for some losses if you want to be around when the wins start rolling in.

Dont expect to make a fortune if you only allocate an hour or two a day to trading. You need to constantly monitor the markets and be on the lookout for trade opportunities.

Whilst youre finding your feet, stick to a maximum of three stocks during a single day. Its better to get really good at a few than to be average and making no money on loads.

Understanding market intricacies isnt enough, you also need to stay informed. Make sure you stay up to date with market news and any events that will impact your asset, such as a shift in economic policy. You can find a wealth of online financial and business resources that will keep you in the know.

Its harder than it looks to keep emotions at bay when youre five coffees in and youve been staring at the screen for hours. You need to let maths, logic and your strategy guide you, not nerves, fear, or greed.

The market will get volatile when it opens each day and while experienced day traders may be able to read the patterns and profit, you should bide your time. So hold back for the first 15 minutes, youve still got hours ahead.

A must-have tool for any beginner, but also the best place to backtest or experiment with new, or refined, strategies for advanced traders. Many demo accounts are unlimited, so not time restricted.

Whether youre after automated day trading strategies, or beginner and advanced tactics, youll need to take into account three essential components; volatility, liquidity and volume. If youre to make money on tiny price movements, choosing the right stock is vital. These three elements will help you make that decision.

This enables you to swiftly enter and exit trades at an attractive and stable price. Liquid commodity strategies, for example, will focus on gold, crude oil and natural gas.

This tells you your potential profit range. The greater the volatility, the greater profit or loss you may make. The cryptocurrency market is one such example well known for high volatility.

This measurement will tell you how many times the stock/asset has been traded within a set period of time. For day traders, this is better known as average daily trading volume. High volume tells you theres significant interest in the asset or security. An increase in volume is frequently an indicator a price jump either up or down, is fast approaching.

Breakout strategies centre around when the price clears a specified level on your chart, with increased volume. The breakout trader enters into a long position after the asset or security breaks above resistance. Alternatively, you enter a short position once the stock breaks below support.

After an asset or security trades beyond the specified price barrier, volatility usually increases and prices will often trend in the direction of the breakout.

You need to find the right instrument to trade. When doing this bear in mind the assets support and resistance levels. The more frequently the price has hit these points, the more validated and important they become.

This part is nice and straightforward. Prices set to close and above resistance levels require a bearish position. Prices set to close and below a support level need a bullish position.

Use the assets recent performance to establish a reasonable price target. Using chart patterns will make this process even more accurate. You can calculate the average recent price swings to create a target. If the average price swing has been 3 points over the last several price swings, this would be a sensible target. Once youve reached that goal you can exit the trade and enjoy the profit.

One of the most popular strategies is scalping. Its particularly popular in the forex market, and it looks to capitalise on minute price changes. The driving force is quantity. You will look to sell as soon as the trade becomes profitable. This is a fast-paced and exciting way to trade, but it can be risky. You need a high trading probability to even out the low risk vs reward ratio.

Be on the lookout for volatile instruments, attractive liquidity and be hot on timing. You cant wait for the market, you need to close losing trades as soon as possible.

Popular amongst trading strategies for beginners, this strategy revolves around acting on news sources and identifying substantial trending moves with the support of high volume. There is always at least one stock that moves around 20-30% each day, so theres ample opportunity. You simply hold onto your position until you see signs of reversal and then get out.

Alternatively, you can fade the price drop. This way round your price target is as soon as volume starts to diminish.

This strategy is simple and effective if used correctly. However, you must ensure youre aware of upcoming news and earnings announcements. Just a few seconds on each trade will make all the difference to your end of day profits.

Although hotly debated and potentially dangerous when used by beginners, reverse trading is used all over the world. Its also known as trend trading, pull back trending and a mean reversion strategy.

This strategy defies basic logic as you aim to trade against the trend. You need to be able to accurately identify possible pullbacks, plus predict their strength. To do this effectively you need in-depth market knowledge and experience.

The daily pivot strategy is considered a unique case of reverse trading, as it centres on buying and selling the daily low and high pullbacks/reverse.

A day trading pivot point strategy can be fantastic for identifying and acting on critical support and/or resistance levels. It is particularly useful in the forex market. In addition, it can be used by range-bound traders to identify points of entry, while trend and breakout traders can use pivot points to locate key levels that need to break for a move to count as a breakout.

A pivot point is defined as a point of rotation. You use the prices of the previous days high and low, plus the closing price of a security to calculate the pivot point.

Note that if you calculate a pivot point using price information from a relatively short time frame, accuracy is often reduced.

You can then calculate support and resistance levels using the pivot point. To do that you will need to use the following formulas:

The second level of support and resistance is then calculated as follows:

When applied to the FX market, for example, you will find the trading range for the session often takes place between the pivot point and the first support and resistance levels. This is because a high number of traders play this range.

Its also worth noting, this is one of the systems & methods that can be applied to indexes too. For example, it can help form an effective S&P day trading strategy.

This is particularly important if youre using margin. Requirements for which are usually high for day traders. When you trade on margin you are increasingly vulnerable to sharp price movements. Yes, this means the potential for greater profit, but it also means the possibility of significant losses. Fortunately, you can employ stop-losses.

The stop-loss controls your risk for you. In a short position, you can place a stop-loss above a recent high, for long positions you can place it below a recent low. You can also make it dependant on volatility.

For example, a stock price moves by 0.05 a minute, so you place a stop-loss 0.15 away from your entry order, allowing it to swing (hopefully in the expected direction).

One popular strategy is to set up two stop-losses. Firstly, you place a physical stop-loss order at a specific price level. This will be the most capital you can afford to lose. Secondly, you create a mental stop-loss. Place this at the point your entry criteria are breached. So if the trade makes an unanticipated turn, youll make a swift exit.

Forex strategies are risky by nature as you need to accumulate your profits in a short space of time. You can apply any of the strategies above to the forex market, or you can see ourforexpage for detailed strategy examples.

The exciting and unpredictable cryptocurrency market offers plenty of opportunities for the switched on day trader. You dont need to understand the complex technical makeup of bitcoin or ethereum, nor do you need to hold a long-term view on their viability. Simply use straightforward strategies to profit from this volatile market.

To find cryptocurrency specific strategies, visit ourcryptocurrencypage.

Day trading strategies for stocks rely on many of the same principles outlined throughout this page, and you can use many of the strategies outlined above. Below though is a specific strategy you can apply to the stock market.

This is one of the moving averages strategies that generates a buy signal when the fast moving average crosses up and over the slow moving average. A sell signal is generated simply when the fast moving average crosses below the slow moving average.

So, Youll open a position when the moving average line crosses in one direction and youll close the position when it crosses back the opposite way.

How can you establish theres definitely a trend? You know the trend is on if the price bar stays above or below the 100-period line.

For more information on stocks strategies, see ourStocks and sharespage.

Spread betting allows you to speculate on a huge number of global markets without ever actually owning the asset. Plus, strategies are relatively straightforward.

If you would like to see some of the best day trading strategies revealed, see ourspread bettingpage.

Developing an effective day trading strategy can be complicated. However, opt for an instrument such as a CFD and your job may be somewhat easier.

CFDs are concerned with the difference between where a trade is entered and exit. Recent years have seen their popularity surge. This is because you can profit when the underlying asset moves in relation to the position taken, without ever having to own the underlying asset.

For CFD specific day trading tips and strategies, see ourCFDpage.

Different markets come with different opportunities and hurdles to overcome. Day trading strategies for the Indian market may not be as effective when you apply them in Australia. For example, some countries may be distrusting of the news, so the market may not react in the same way as youd expect them to back home.

Regulations are another factor to consider. Indian strategies may be tailor-made to fit within specific rules, such as high minimum equity balances in margin accounts. So, get online and check obscure regulations wont impact your strategy before you put your hard earned money on the line.

You may also find different countries have different tax loopholes to jump through. If youre based in the West but want to apply your normal day trading strategies in the Philippines, you need to do your homework first.

What type of tax will you have to pay? Will you have to pay it abroad and/or domestically? Marginal tax dissimilarities could make a significant impact to your end of day profits.

Strategies that work take risk into account. If you dont manage risk, youll lose more than you can afford and be out of the game before you know it. This is why you should always utilise a stop-loss.

The price may look like its moving in the direction you hoped, but it could reverse at any time. A stop-loss will control that risk. Youll exit the trade and only incur a minimal loss if the asset or security doesnt come through.

Savvy traders dont usually risk more than 1% of their account balance on a single trade. So if you have 27,500 in your account, you can risk up to 275 per trade.

It will also enable you to select the perfect position size. Position size is the number of shares taken on a single trade. Take the difference between your entry and stop-loss prices. For example, if your entry point is 12 and your stop-loss is 11.80, then your risk is 0.20 per share.

Now to figure out how many trades you can take on a single trade, divide 275 by 0.20. You can take a position size of up to 1,375 shares. That is the maximum position you could take to stick to your 1% risk limit.

Also, check there is sufficient volume in the stock/asset to absorb the position size you use. In addition, keep in mind that if you take a position size too big for the market, you could encounter slippage on your entry and stop-loss.

Everyone learns in different ways. For example, some will find day trading strategies videos most useful. This is why a number of brokers now offer numerous types of day trading strategies in easy-to-follow training videos. Head to their learning and resources section to see whats on offer.

If youre looking for the best day trading strategies that work, sometimes online blogs are the place to go. Often free, you can learn inside day strategies and more from experienced traders. On top of that, blogs are often a great source of inspiration.

Some people will learn best from forums. This is because you can comment and ask questions. Plus, you often find day trading methods so easy anyone can use. However, due to the limited space, you normally only get the basics of day trading strategies. So, if you are looking for more in-depth techniques, you may want to consider an alternative learning tool.

If you want a detailed list of the best day trading strategies, PDFs are often a fantastic place to go. Their first benefit is that they are easy to follow. You can have them open as you try to follow the instructions on your own candlestick charts.

Another benefit is how easy they are to find. For example, you can find a day trading strategies using price action patterns PDF download with a quick google. They can also be very specific. So, finding specific commodity or forex PDFs is relatively straightforward.

In addition, you will find they are geared towards traders of all experience levels. Hence you can find for beginners PDFs and advanced PDFs. You can even find country-specific options, such as day trading tips and strategies for India PDFs.

Having said that, a PDF simply wont go into the level of detail that many books will. The books below offer detailed examples of intraday strategies. Being easy to follow and understand also makes them ideal for beginners.

A Powerful Day Trading Strategy For Trading Futures, Stocks, ETFs and Forex, Mark Hodge

A Detailed Guide to Day Trading Strategies, Risk Management, and Trader Psychology, Ross Cameron

: Proven Steps to Trading Profits, Jeff Cooper

A Practical Manual from a Professional Day Trading Coach, Markus Heitkoetter

Advanced Short-Term Trading Strategies, Tony Oz

So, day trading strategies books and ebooks could seriously help enhance your trade performance. If you would like more top reads, see ourbooks page.

Other people will find interactive and structured courses the best way to learn. Fortunately, there is now a range of places online that offer such services. You can find courses on day trading strategies for commodities, where you could be walked through a crude oil strategy. Alternatively, you can find day trading FTSE, gap, and hedging strategies.

If youre looking to pack up the day job and start day trading for a living, then youve got a challenging but exciting journey ahead of you. Youll need to wrap your head around advanced strategies, as well as effective risk and money management strategies. Discipline and a firm grasp on your emotions are essential.

For more information, visit our trading for a living page.

Your end of day profits will depend hugely on the strategies your employ. So, its worth keeping in mind that its often the straightforward strategy that proves successful, regardless of whether youre interested in gold or the NSE.

Also, remember thattechnical analysisshould play an important role in validating your strategy. In addition, even if you opt for early entry or end of day trading strategies, controlling your risk is essential if you want to still have cash in the bank at the end of the week. Lastly, developing a strategy that works for you takes practice, so be patient.

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All contents on this site is for informational purposes only and does not constitute financial advice. Consult relevant financial professionals in your country of residence to get personalised advice before you make any trading or investing decisions. may receive compensation from the brands or services mentioned on this website.

Risk Warning: Trading CFDs on leverage involves significant risk of loss to your capital.