How often should you trade Day Trading?


First of all, you need to have a clear trading plan. Trade according to what your strategy dictates. Here are some useful rules you can follow to help you decide when to trade intraday:

◈ Monday’s open is not good for trading. The lack of liquidity can lead to sudden movements, without any logic.

◈ The London open is good for trading. That trading moment can potentially make your day.

◈ Breakout trading applies to intraday trading when a new high or low has occurred.

◈ Buy on the first pullback after a new high. Sell ​​on the first rally after a new low.

◈ The last hour of trading (normally in London sessions) often tells the truth about how strong a trend really is. As long as a market has strong consecutive closes, look for the trend to continue. The uptrend is very likely to end when there is a first morning rally, followed by a weak close, and vice versa for a short trend.

◈ Do not operate on holidays or late Friday.

◈ Do not trade when the market is in a 20-30 pip range during the day.

◈ Sometimes not having a position in the market is equivalent to having a profitable position.

◈ The range of the first hour should set the frame for the remainder of the trading day.

How often you should trade intraday is also determined by your trading strategy.

Let’s say your strategy makes 60% of trades win. If you skip the routine too many times, you are more likely to miss winning trades (60%) than losing trades (40%). Always try to find your balance, the rules above will help you!

What are the risks of Day Trading?

The smaller the time frame in which it operates, the greater the risk. This is why Intraday Trading and Scalping are known as the trading styles with the highest risk.

Since markets can only move a certain number of points in a session, intraday traders use high risk trading techniques to increase profit volume.

These techniques are:

  • High levels of leverage to try to take advantage of price movements
  • Increase in the number of operations, with the same purpose.

We insist, they are techniques with a lot of risk, and therefore the probability of having large losses is very high. It is not recommended especially for beginners.

What is the solution? Form. That is why we offer you free online trading courses. You just have to register by clicking on the following image!

Leave a Comment

Your email address will not be published.

You may also like