Triton Capital Markets — Day Trading Strategies for Beginners

Day trading is one of the most popular trading styles nowadays.

On a daily basis, day traders give sufficient time for their preparation because they’re well aware that this is the most important task they must start their day with.

This includes not only analyzing the marketplace for potential trade setups but also mental and physical preparation and exercise.

What are the best markets for day trading?

Day trading is commonly related to markets that have fixed closes, although, in reality, you can be a day trader and still trade in markets that are open around the clock, or the closest thing to that. Ultimately choosing a market day-to-day comes down to what you are curious about, what you can afford, and how much time you would like to spend in trading.

Popular day trading markets include:

• Shares
• Indices
• Cryptocurrencies
• Forex

Here are some of the things that you need to know about day trading and how to get it started.

Checking an economic calendar

Economic calendars include important market events and reports that may create extreme volatility within the market. Economic calendars and the news they deliver are of great importance to day traders because volatility is crucial for day trading. The majority of economic calendars include the stock or currency that is likely impacted by the release, the forecasted number, the previous number, and therefore the actual release.

Checking an economic calendar for the most important market reports scheduled for the day should be a daily part of your morning preparation routine, in case you want to become a day trader.

Markets tend to be very volatile if the particular number differs from the expected number to an oversized extent. Depending on your market outlook, this volatility can work either for or against you.

Reading relevant market news

While most day traders use technical analysis in their trading, it’s no secret that fundamentals play an important part in financial markets. Fundamentals can form new trends, reverse them, and cause important support and resistance levels to interrupt, which makes it important to follow market news when day trading.

Many traders use popular financial portals to remain up-to-date on market news. While you don’t have to read through any news that comes across, knowing what’s occurring within the market will facilitate you with your market research and generate new trading ideas.

Don’t let your sentiments interfere with your trading decisions

Allowing your emotions to interfere with your trading strategy is one of the most common mistakes made by day traders. This definitely affects these traders‘ performance and later their gains. Emotions, like fear and greed, cause traders to let their losses run and cut their profits short — both actions that may make significant damage to your trading account.

I know you must be thinking “Are there any methods to prevent the emotions from interfering with my trading strategy as a day trader and keep a cool head?” Actually, the best solution is to have a well-defined trading plan and to only take trades that are aligned with your strategy. An entire trading plan should also describe your risk management and entry and exit points. It creates a scientific approach to trading — one which has a much larger rate of success than trading supported emotions.

Trend-following

Trend-following is one of the most popular methods of trading tactics among day traders for a reason. Trend-following refers to taking trades only within the direction of the established trend. If the present trend is up, look for buying opportunities, and if this trend is down, explore for other selling opportunities.